WINALL(SZ:300087) Tianfeng Securities·2024-08-28 03:14Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [6]. Core Insights - The company reported a revenue of 1.411 billion yuan for H1 2024, representing a year-on-year increase of 30.62%, while the net profit attributable to shareholders was -22 million yuan, a decline of 156.41% year-on-year [1]. - The growth in seed sales is driven by increased exports, particularly in rice seeds, which saw a revenue increase of 14.09% year-on-year [2]. - The company is focusing on core seed business synergies and has seen significant growth in its order agriculture business, with a revenue increase of 111.96% year-on-year [3]. - High R&D investment continues, with 38 million yuan spent in H1 2024, a 19.47% increase year-on-year, and the approval of three transgenic corn varieties is expected to support future growth [4]. Summary by Sections Financial Performance - In H1 2024, the company achieved a revenue of 1.411 billion yuan, with a 30.62% increase year-on-year. Q2 revenue was 738 million yuan, up 59.50% year-on-year and 9.61% quarter-on-quarter [1]. - The company’s non-seed business revenue reached 774 million yuan, a 53.79% increase year-on-year, with the order agriculture segment contributing 480 million yuan, reflecting a 111.96% growth [3]. - R&D expenses for H1 2024 were 38 million yuan, representing a 19.47% increase year-on-year, with a research expense ratio of 2.71% [4]. Seed Sales Breakdown - The company’s total seed sales revenue for H1 2024 was 636 million yuan, a 10.36% increase year-on-year, primarily driven by rice seed exports [2]. - Rice seeds generated 381 million yuan in revenue, with a gross margin of 31.19%. The company added 4 new national hybrid rice varieties and 19 provincial hybrid rice varieties [2]. - Corn seed revenue was 119 million yuan, down 9.93% year-on-year, while wheat seed revenue plummeted by 69.36% to 60 million yuan [2]. R&D and Future Growth - The company is actively engaged in biobreeding technology development and has received preliminary approval for three transgenic corn varieties, which are expected to enhance its corn seed business [4]. - The company has a clear path for variety and regional expansion, focusing on R&D to support future growth in the seed industry [4].