Haitong pointed out that Yunnan Baiyao (000538.SZ) continues to deepen the transformation of digital strategy, the brand value of traditional Chinese medicine resources continues to improve, and the core category continues to sell volume, giving the company 30-35X PE in 2023, corresponding to a reasonable value range of 71.70-83.65yuan, maintaining a "better than the market" rating. In the first half of the year, the company's four major business divisions grew steadily, and the volume of multi-core categories increased rapidly. Among them, the revenue of the Pharmaceutical Division in the first half of the year was 3.852 billion yuan, an increase of 14.63% over the same period last year. In the core series of Baiyao products, the revenue of Yunnan Baiyao aerosol exceeded 900 million yuan, an increase of 18.20% over the same period last year. The company deepens the layout of emerging business units (BU), and the digital strategy continues to advance. The company focuses on cultivating oral smart care, precision medical beauty and Zhiyun Health New Business Unit (BU), and is committed to exploring a new business model of accurate customized comprehensive solution based on big data service background, so as to create a new performance growth point for the company.