Yili Chuanning Biotechnology (SZ:301301) Guotou Securities·2024-07-08 10:30Investment Rating - The investment rating for the company is "Buy-A" with a 6-month target price of 13.69 CNY, compared to the current stock price of 12.26 CNY as of July 5, 2024 [1]. Core Insights - The company is expected to achieve a net profit of 730-770 million CNY in the first half of 2024, representing a year-on-year growth of 86.76%-97.00%. The net profit for Q2 alone is projected to be 377-417 million CNY, showing a year-on-year increase of 75.19%-93.76% and a quarter-on-quarter growth of 7.03%-18.37% [1][2]. - The company's competitive advantages in advanced biomanufacturing, including synthetic biology and AI technology, are expected to drive long-term growth and cost control [2][3]. - The company has made significant progress in synthetic biology, with products like rosmarinic acid and 5-hydroxytryptophan already in production, and plans for further commercialization [3][8]. Financial Performance - The company’s revenue is projected to grow from 4,823.3 million CNY in 2023 to 5,520.4 million CNY in 2024, with a growth rate of 14.5%. Net profit is expected to increase from 940.6 million CNY in 2023 to 1,217.0 million CNY in 2024, reflecting a growth rate of 29.4% [10][11]. - The company’s net profit margin is expected to improve from 19.5% in 2023 to 22.0% in 2024, indicating enhanced profitability [11]. Market Conditions - The antibiotic intermediate market is showing strong demand, with the company benefiting from both volume and price increases in its main products [1][2]. - The price of cephalosporin intermediates has rebounded slightly in 2024, contributing positively to the company's performance [2]. Strategic Initiatives - The company is collaborating with Jinchan Technology to optimize fermentation processes using AI, which is expected to enhance production efficiency and reduce costs [2]. - The company is also focusing on expanding its synthetic biology product line, which includes high-value natural products and bulk compounds, potentially opening a second growth curve [8].