Gelonghui, May 11 | Zheshang Securities Research Report pointed out that Tong Ren Tang (600085.SH)'s Q1 performance got off to a good start, and net profit to mother achieved double-digit growth under a high base for the same period last year, which is expected to gradually resolve the market's concerns about the pressure on the company's performance; the base pressure for the next three quarters of '24 will be even smaller, and the performance growth rate may increase quarterly. The shareholders' meeting is expected to be held in June '24, and expectations for the company's potential state-owned enterprise reform are strong. The company is an old state-owned Chinese medicine leader. The core products have the power to rise rapidly in volume and price. The average PE in the past 3/5/10 years was 41.44x/38.33x/38.95x, respectively. Considering that the company has the characteristics of “strong brand power, minimal adverse effects from policies, and potential state-owned enterprise reform potential”, the company should enjoy a higher valuation premium. Currently, the company has not changed downward. Combined with shareholders' meeting catalysts and fund shareholding ratio of only 14.01% (up to the end of 23, including ETF and other index funds), corresponding to the target market value of 99,997 100 million The yuan corresponds to an increase of 31.02%.