GLONGHUI July 12丨Huaxin Securities's research report on the 11th pointed out that Teyi Pharmaceutical (002728.SZ)'s net profit for H1 in 2023 increased 135.92%-152.19% year-on-year. The higher growth rate was mainly affected by the epidemic. Demand for the company's exclusive cough suppressants surged, while sales were blocked in Q2 2022 due to containment. In 2023, H1 cough suppressant tablets sold 540 million tablets, exceeding sales volume for the full year of 2022. Focusing on cough medicine products, the company has gradually launched products such as monoclonal parasitic particles, blood poison pills for skin diseases, hypoglycemic pills, pudilan anti-inflammatory tablets, Fengyu gastrointestinal health tablets, gingling granules, and Liuwei Dihuang pills. At the same time, the R&D department is vigorously developing upstream medical and aesthetic varieties, forming a better synergistic effect for the company's expansion from drug R&D and production to the field of traditional Chinese medicine and traditional Chinese medicine health consumption. The company's current sales model is a dealer model. The company plans to gradually shift to direct sales, thereby increasing the revenue and enthusiasm of pharmacy terminals, thereby further expanding the company's sales scale. The bank predicts that the company's annual revenue for 2023E-2025E will be 1,183, 13.26, and 1,495 billion yuan, respectively, net profit of 251, 3.03, and 358 million yuan, and EPS of 1.10, 1.32, and 1.56 yuan respectively. The current stock price corresponding to PE is 13.6, 11.3, and 9.6 times, respectively, giving it a “buy” investment rating.