Long Ping High-Tech(SZ:000998) Guoxin Securities·2024-08-09 00:30Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1] Core Views - The company plans to issue A-shares to specific investors, with the controlling shareholder, CITIC Agricultural Technology Co., Ltd., fully subscribing to the offering, aiming to raise no more than 1.2 billion yuan [4][5] - Post-issuance, the shareholding ratio of CITIC Agricultural and CITIC Xingye Investment Group will increase from 17.36% to 25.93%, enhancing the stability of the company's equity structure and demonstrating the major shareholder's commitment to the company's long-term development [6] - The company's debt-to-asset ratio is projected to decrease from 62.80% to 58.34% by the end of Q1 2024, improving its capital and debt structure, thereby enhancing its risk resistance [6] - As a leading player in the domestic corn seed market, the company has a strong traditional breeding reserve and is advancing genetically modified corn research through partnerships, which positions it to benefit from both price increases and market share growth in the future [7][8] Summary by Sections Equity Structure and Financial Health - The issuance is expected to strengthen the company's equity structure and optimize its capital structure, which will support long-term development [6] - The projected net profit for the company from 2024 to 2026 is estimated at 510 million, 630 million, and 730 million yuan, respectively, with earnings per share of 0.39, 0.48, and 0.55 yuan, corresponding to a price-to-earnings ratio of 26, 21, and 18 times [9] Business Growth and Market Position - The company is well-positioned to capitalize on the increasing penetration of genetically modified corn seeds, which is expected to drive both volume and profit growth [9] - The company has a leading number of approved genetically modified corn varieties, indicating a significant first-mover advantage in the market [8]