ZUO LI YAO YE(300181) 信达证券·2025-03-11 02:23Investment Rating - The report assigns a "Buy" rating for Zuo Li Pharmaceutical (300181) based on its strong growth prospects and market positioning [1]. Core Views - Zuo Li Pharmaceutical is expected to achieve significant revenue growth driven by its core products, including Wu Ling capsules, Ling Ze tablets, and Bai Ling series, alongside new business contributions from traditional Chinese medicine [1][3][4]. - The company anticipates a revenue of 2.58 billion yuan for 2024, representing a year-on-year growth of 32.81%, and a net profit of 505 million yuan, reflecting a growth of 31.79% [1][6]. Summary by Sections Revenue and Profit Forecast - For 2024, the company projects total revenue of 2.58 billion yuan, with a year-on-year growth of 32.81%. The expected net profit is 505 million yuan, up 31.79% year-on-year [1][6]. - In Q1 2025, the forecasted net profit is between 178 million to 189 million yuan, indicating a growth of 24.99% to 32.71% [1]. Product Performance - Wu Ling capsules are expected to leverage their status as a national essential medicine to capture new growth opportunities, targeting a market size of 2 billion yuan [3]. - Ling Ze tablets are also positioned to reach a market size of 1 billion yuan through accelerated promotion in medical institutions [3]. - The Bai Ling series is anticipated to benefit from synergies between Bai Ling capsules and tablets, aiming for a similar market size [4]. New Business Contributions - The traditional Chinese medicine segment, including herbal pieces and formula granules, has shown robust growth, with herbal pieces revenue increasing by 45.82% and formula granules by 145.34% year-on-year [4][5]. - The company’s subsidiary, Zuo Li Medicine, contributed an additional revenue of 158 million yuan [4]. Strategic Initiatives - The company has implemented a stock incentive plan to align employee interests with long-term growth, targeting a net profit growth rate of no less than 30% from 2025 to 2027 [4]. - Zuo Li Pharmaceutical aims to maintain a strategic focus on traditional Chinese medicine while expanding its market share through new product development and enhanced distribution channels [5].