Dongwu Securities: Initiate coverage of Tongcheng Beijian with a "buy" rating, believing that the current valuation still offers a good value for money.

Dongwu Securities research report pointed out that in the health products industry, a well-established player, Tongrentang is starting a new journey of second entrepreneurship. Looking ahead to the next three years, the company's innovation will focus on two key directions: micro-innovations in advantage categories; innovations that can achieve large sales volume, emphasize functionality and new features, that is, wide product range, flagship products. Based on the fact that the proportion of cross-border channels in e-commerce sales in the health products industry is expected to increase from about 43% in 2022 to about 50% in 2024, with a growth of nearly 7 percentage points over three years, Tongrentang is actively entering this field with a focus on the cross-border brand Life-space's "Super Benefits Plan" and new ingredients represented by PCC1. Considering the company's strong consumer base, active exploration of new channels and markets, it is believed that the current valuation still has cost-effectiveness. First coverage, rated as "buy".