TAIJI GROUP(600129) Guolian Securities·2024-03-30 16:00Investment Rating - The report does not explicitly state an investment rating for the company [1][4][6] Core Views - The company achieved robust growth in its pharmaceutical industry, with core products performing exceptionally well [1][2] - The company's revenue for 2023 was RMB 15.623 billion, a year-on-year increase of 11%, and net profit attributable to shareholders was RMB 822 million, a year-on-year increase of 132% [1] - The pharmaceutical industry segment generated revenue of RMB 10.388 billion, a year-on-year increase of 19.40%, with a gross margin of 64.74% [2] - Key products such as Taiji Huoxiang Zhengqi Oral Liquid and Jizhi Syrup showed significant sales growth, with increases of 45% and 67% respectively [2] - The company has a broad product portfolio covering key therapeutic areas, including digestive and metabolic drugs, respiratory drugs, and cardiovascular drugs [3] - The company is expected to achieve revenue of RMB 17.9 billion, RMB 20.7 billion, and RMB 23.9 billion in 2024, 2025, and 2026 respectively, with a compound annual growth rate (CAGR) of 26.29% for net profit attributable to shareholders [4] Financial Performance and Valuation - The company's revenue for 2023 was RMB 15.623 billion, with a net profit attributable to shareholders of RMB 822 million [1] - The company's EBITDA for 2023 was RMB 1.631 billion, and it is expected to reach RMB 3.316 billion by 2026 [5] - The company's EPS is projected to be RMB 1.98, RMB 2.52, and RMB 2.97 in 2024, 2025, and 2026 respectively [4] - The company's P/E ratio is expected to decrease from 22.5 in 2023 to 11.2 in 2026, indicating potential undervaluation [5] - The company's net profit margin improved from 2.42% in 2022 to 5.46% in 2023, and is expected to reach 7.17% by 2026 [8] Industry and Market Position - The company operates in the pharmaceutical and biological industry, specifically in the traditional Chinese medicine sector [6] - The company's products have strong brand value, with several products ranking first in their respective categories in the 2023 China OTC Drug Statistics Ranking [3] - The company is a leading player in the OTC traditional Chinese medicine market, with significant advantages in brand and product portfolio [4] Future Outlook - The company is expected to maintain strong revenue growth, with projected revenue increases of 14.79%, 15.51%, and 15.38% in 2024, 2025, and 2026 respectively [4] - The company's net profit attributable to shareholders is expected to grow at a CAGR of 26.29% over the next three years [4] - The company's profitability metrics, including ROE and ROIC, are expected to remain strong, with ROE projected to be 21.27% in 2026 [8]