24Q1 performance grew steadily, and the increase in domestics/pets can be expected

Against the backdrop of challenging livestock and poultry farming, the company's 24Q1 performance increased steadily, achieving net profit of 88 million yuan to mother, an increase of 8.35% over the previous year. We expect high year-on-year growth in the livestock and pet sector in 2024 or two of the company's major highlights. Maintaining the profit forecast, it is estimated that net profit due to mother will be 511/6.59/ 783 million yuan in 24-26, corresponding EPS of 1.10, 1.41, and 1.68 yuan. Referring to the comparable company 19.71XPE in 2024, the company was given 19.71XPE for 24 years, corresponding to a target price of 21.68 yuan. Maintain a “buy” rating.

24Q1 performance grew steadily, with net profit attributable to mother +8.35% YoY

The company achieved revenue of 533 million yuan in 2024Q1, an increase of 20.4% over the previous year, in line with our previous operating income expectations of 50 to 550 million yuan; achieved net profit of 88 million yuan, an increase of 8.35% over the previous year.

It is in line with our previous expectations of 0.87 to 97 million yuan. Against the backdrop of challenging livestock and poultry farming, the company's performance increased steadily, or it was the only sports insurance company with positive year-on-year profit growth in 24Q1. According to analysis, we believe that the reason may be: 1) The company, as a leading poultry seedling, was relatively less affected by the pig cycle; 2) the 24Q1 poultry/livestock sector may have experienced a high level of growth; 3) the cat triple vaccine contributed to increased revenue and profit. The announcement showed that Ruipu's cat triple vaccine “Ruimiushu” had sales of nearly 10 million yuan in the first month of launch.

Quality and efficiency are improved throughout the year, and the domestical/pet sector can be expected to increase

In 2023, Ruipu Biotech focused on improving quality and efficiency, optimizing marketing strategies, making internal management adjustments, and increasing research and development, and achieved good business results. Looking ahead to 2024, we think the company still has a few highlights: 1) the high year-on-year growth in the livestock sector, or mainly due to the in-depth implementation of major customer strategies and the increase in foot-and-mouth disease vaccines brought about by the livestock sector's acquisition of Biwei Antai; 2) the pet sector has a fresh look, and the company's pet sector is under slight pressure in 2023 due to a certain “reduction in medical consumption” in the pet industry.

In 2024, along with the company's adjustment of marketing methods, optimization of channel structure, and the quality and supply chain advantages of Cat Sanlian products, the company's pet sector may usher in a new round of growth.

The target price is 21.68 yuan, maintaining the “buy” rating

We expect the company's net profit to be 511, 6.59 million yuan, and 783 million yuan respectively for 24-26, corresponding EPS of 1.10, 1.41, and 1.68 yuan, respectively, and a target price of 21.68 yuan, maintaining a “buy” rating.

Risk warning: the risk of the epidemic in the breeding industry, the risk of increased market competition in the animal insurance industry, the risk of sharp fluctuations in pig prices or poultry prices, falling short of expectations in the promotion of new products, etc.