JILIN AODONG(000623) 国元证券·2024-03-26 16:00Investment Rating - The report gives an "Accumulate" rating for the company, indicating a positive outlook for future performance [35][156]. Core Insights - The company has a strong historical foundation in the pharmaceutical industry and is actively expanding into the health and wellness sector, leveraging its financial strengths to drive growth [42][50]. - The traditional Chinese medicine segment is expected to maintain a high growth rate, with projected revenue growth rates of 20.7%, 15.5%, and 13.7% for 2023-2025 [154]. - The chemical drug segment is anticipated to recover gradually, with significant growth expected from products like L-lysine and other small varieties [20][107]. - The health and wellness business is experiencing rapid growth, with a revenue increase of 303.76% in the first half of 2023 compared to the previous year [137]. Summary by Sections 1. Company Overview - The company, Jilin Aodong Pharmaceutical Group, has a long history dating back to 1957 and has evolved into a large-scale enterprise focusing on pharmaceuticals and health products [42][50]. - The company has a stable shareholding structure, with key management continuously increasing their stakes, which enhances investor confidence [46][57]. 2. Traditional Chinese Medicine (TCM) - TCM products have shown steady growth, with significant contributions from core products such as Anshen Bnnao Liquid, Xiaoer Chaigui Oral Liquid, and Xuefu Zhuyu Oral Liquid [50][89]. - The company is expanding its production capacity for TCM formula granules, which are expected to capture a larger market share [78][154]. 3. Chemical Drugs - The chemical drug segment has faced challenges due to regulatory impacts but is expected to stabilize and recover, particularly with the removal of certain products from monitoring lists [20][107]. - Sales of L-lysine and other chemical drugs are projected to grow significantly, contributing to the overall revenue recovery [20][107]. 4. Health and Wellness Sector - The health and wellness segment is rapidly expanding, with a focus on dietary supplements and functional foods, which are projected to see substantial revenue growth [137][148]. - The company is leveraging e-commerce and digital marketing strategies to enhance sales in this sector [139]. 5. Financial Performance and Projections - The company forecasts net profits of 2.76 billion, 3.26 billion, and 3.79 billion yuan for 2023-2025, reflecting significant growth rates [22][156]. - The projected total market value of the company is estimated at 223.7 billion yuan, indicating that the current market valuation is undervalued [156].