JIANMIN GROUP(600976) 东吴证券·2025-04-19 08:25Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [1]. Core Views - The company is positioned as a leader in pediatric traditional Chinese medicine, particularly with its flagship product, Longmu Bone Strengthening Granules, which has shown significant sales growth and market recognition [8][14]. - The company is undergoing a marketing reform and inventory management strategy, which may lead to short-term revenue decline but is expected to set a foundation for long-term growth [8][23]. - The company has a strong pipeline of innovative products and is focusing on expanding its OTC (over-the-counter) offerings, particularly in the pediatric segment [8][37]. Summary by Sections Financial Performance - The company reported a total revenue of 42.13 billion yuan in 2023, with a year-on-year growth of 15.72%. However, a decline to 35.05 billion yuan is expected in 2024, representing a decrease of 16.81% [1][23]. - The net profit attributable to shareholders for 2023 was 5.21 billion yuan, up 27.78% from the previous year, but is projected to drop to 3.62 billion yuan in 2024, a decline of 30.54% [1][23]. - The earnings per share (EPS) for 2023 was 3.40 yuan, with a forecast of 2.36 yuan for 2024 [1]. Pediatric Product Line - Longmu Bone Strengthening Granules is a leading product in the pediatric calcium supplement market, achieving sales of over 6.2 billion bags in 2023, a 15.2% increase from the previous year [8][48]. - The company is focusing on expanding its pediatric product line, which includes various formulations for common childhood ailments, and has seen a compound annual growth rate (CAGR) of 26.6% in its pediatric segment from 2018 to 2023 [8][58]. OTC Brand Development - The company is actively developing its OTC brand strategy, with a focus on products like the Bian Tong Capsule, which has seen a sales growth of 45% in 2023 [8][37]. - The pediatric drug market in China is characterized by a scarcity of suitable products, presenting significant growth opportunities for the company [8][38]. Innovation and R&D - The company has accelerated its R&D efforts, with 51 projects currently in development, including 31 new drug projects [8][33]. - Recent approvals for innovative products, such as the pediatric Zibei Syrup and the Cow Yellow Pediatric Fever Patch, are expected to enhance the company's competitive edge in the market [8][33]. Market Position and Strategy - The company maintains a strong market position in the pediatric traditional Chinese medicine sector, with a market share of 10.84% in the pediatric Chinese medicine market [8][50]. - The company is implementing strategic adjustments to its sales approach, including reducing channel inventory to better align with market demand [8][53].