Investment Rating - The report assigns a "Buy-A" investment rating to the company, with a target price of 35.69 CNY over the next six months, representing a dynamic price-to-earnings ratio of 22 times for 2024 [4][8][13]. Core Insights - The company has shown rapid growth, with a 2023 revenue of 7.564 billion CNY, a year-on-year increase of 0.72%, and a net profit of 656 million CNY, up 29.55% year-on-year. In Q1 2024, revenue was 1.661 billion CNY, down 1.50% year-on-year, but net profit increased by 35.60% to 166 million CNY [1][2]. - The company's focus on brand operations has driven performance, with the brand operation segment generating 4.4 billion CNY in revenue in 2023, a growth of 18.91%, and contributing over 80% to the company's gross profit [3][6]. - The company is expanding its product matrix, with innovative drugs and high-end medical devices entering the commercialization phase, which is expected to enhance future revenue streams [7][12]. Financial Performance - In 2023, the company achieved a gross margin of 29.98%, an increase of 2.21 percentage points, and a net margin of 8.68%, up 1.99 percentage points. The sales expense ratio improved to 14.05%, down 0.89 percentage points [2]. - The brand operation business is the main profit driver, with a gross margin of 43.17% in 2023. The core brand, Dikao, generated 1.897 billion CNY in revenue, a growth of 16.53% [3][6]. - The company expects revenue growth rates of 13.61%, 15.50%, and 18.54% for 2024 to 2026, with net profit growth rates of 29.94%, 27.59%, and 28.75% respectively [12][13]. Market Position - The company has adjusted its wholesale and retail business layout, with wholesale revenue declining by 19.23% to 2.774 billion CNY in 2023, while retail revenue remained stable at 360 million CNY [6]. - The total market capitalization of the company is approximately 15.79 billion CNY, with a circulating market capitalization of about 3.57 billion CNY [4]. Valuation Analysis - The report compares the company with peers such as Yifeng Pharmacy and Shanghai Pharmaceuticals, noting an average PE ratio of 15.94 times for comparable companies in 2024 [13][14].
持续聚焦核心业务，品牌运营驱动业绩快速增长