The performance was resilient and new products blossomed, and the leading animal insurance innovator continued to grow, maintaining the “Buy” rating company's 2023 annual report and 2024 quarterly report, with 2023 revenue of 1,598 million yuan (+4.55%), net profit to mother of 284 million yuan (+34.64%), single Q4 revenue of 379 million yuan (-9.76%), and net profit to mother of 0.05 billion yuan (-896.08%). 2024Q1's revenue was $348 million (-4.42%), and net profit attributable to mother was $106 million (-1.05%).
Against the backdrop of the downturn in the 2024Q1 downstream aquaculture market, the company's performance remains strong and resilient. Looking ahead to the future market, along with the gradual reversal of the pig cycle and the release of the company's new products, the company's performance is expected to usher in further growth. Affected by short-term performance pressure, we lowered the company's 2024 profit forecast, raised the 2025 profit forecast, and added the 2026 profit forecast. The company's net profit to the mother for 2024-2026 is 3.92/5.10/6.07 (the original forecast for 2024-2025 was 4.25/509 million yuan, respectively). The corresponding EPS is 0.35/0.46/0.54 yuan, respectively. The current stock price corresponds to PE It was 25.5/19.6/16.4 times. The company's performance is resilient, new products have blossomed more, maintained high R&D investment and continued growth, and maintained a “buy” rating.
Non-export products account for more than 50% of revenue, and new products are blooming and entering the harvest period. In 2023, non-export products account for more than 50% of revenue, and the company's overall gross profit margin is 59.19% (+ 4.02pct). Vaccines for pigs: The proportion of revenue is about 50%, the product structure is optimized. Non-oral vaccines account for about 50%. It has many large products with round branches, rings, and bacterial seedlings. In 2024, we will focus on pig diarrhea, blue ear, and bacterial vaccine releases. Ruminant vaccine: The ruminant vaccine accounts for 30% of revenue. The bovine vaccine is rapidly released. Bovine nodule and mycoplasma bovine vaccines are expected to be launched one after another in 2024, and ruminant vaccines are expected to continue their high growth trend. Vaccines for poultry: accounting for about 14% of revenue. After completing business restructuring, growth is expected to recover in 2024. Pet vaccine: The project has sufficient reserves, and the trifecta vaccine for cats has been submitted for emergency evaluation.
Animal insurance innovation leaders continue to advance. High R&D investment continued to grow. In 2023, the company invested 230 million yuan in R&D, accounting for 14.39% of revenue, and laid out more than 40 new R&D pipelines over the next five years. The company is in the first echelon of vaccine research and development, and is currently in the emergency evaluation and anti-drug testing phase. The company's mRNA vaccine production workshop has passed the static inspection of the Ministry of Agriculture and Rural Affairs. It is expected that several mRNA vaccines will be registered in 2024. The company is leading the R&D industry and continues to launch new products, and the growth potential is strong.
Risk warning: The rise in pig prices fell short of expectations, the development of non-plague vaccines fell short of expectations, and market competition intensified.