Yili Chuanning Biotechnology (SZ:301301) Soochow Securities·2024-08-27 00:03Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported strong performance in H1 2024, with revenue of 3.195 billion yuan (+32.20% YoY) and net profit attributable to shareholders of 766 million yuan (+96.05 YoY), slightly exceeding expectations [3] - The company has experienced six consecutive quarters of high growth, driven by strong demand for antibiotics post-public health events and rising raw material prices, benefiting from its position as an industry leader [3] - The synthetic biology segment has a rich R&D pipeline, with several projects expected to contribute profits in the near term, supported by a new production base in Shanghai [3][4] Financial Performance and Forecast - Revenue forecast for 2024-2026 has been adjusted, with net profit estimates raised from 1.1 billion, 1.21 billion, and 1.38 billion yuan to 1.5 billion, 1.82 billion, and 2.05 billion yuan respectively, corresponding to P/E ratios of 19, 16, and 14 times [4] - The company is expected to maintain high growth due to rising product prices and successful advancements in synthetic biology projects [4] - The company achieved a net profit margin of 19.50% in 2023, projected to increase to 24.52% in 2024 [9] Market Data - The closing price of the stock is 10.91 yuan, with a market capitalization of 24.298 billion yuan [6] - The company has a P/E ratio of 30.38 based on the latest diluted earnings per share [10] Operational Highlights - The company’s synthetic biology research institute has developed multiple projects, with some expected to be operational soon, leveraging resource advantages in Xinjiang and Central Asia [3] - The new production base is designed to have flexible production capabilities for various high-value products, which is anticipated to drive continued revenue growth [3]