CAHIC(600195) 中邮证券·2024-09-02 08:41Investment Rating - The investment rating for Zhongmu Co., Ltd. (600195) is "Buy" and is maintained [2][4]. Core Views - The company reported a revenue of 2.479 billion yuan for the first half of 2024, a year-on-year decrease of 1.15%, and a net profit attributable to shareholders of 62.8 million yuan, down 76.65% year-on-year. The decline in product prices and a reduction in gross profit margin have put pressure on the company's performance [3][4]. - The revenue from vaccines and veterinary drugs increased, but profits decreased, while trade and feed revenues declined. Specifically, vaccine revenue was 488 million yuan, up 1.72% year-on-year, with a gross margin of 41.57%, down 4.54 percentage points from the previous year. Chemical drug revenue was 635 million yuan, up 8.34% year-on-year, with a gross margin of 18.32%, down 3.14 percentage points. Feed revenue was 434 million yuan, down 8.23% year-on-year, with a gross margin of 21.88%, down 1.66 percentage points. Trade revenue was 912 million yuan, down 4.83% year-on-year, with a gross margin of 2.26% [3][4]. Financial Summary - The company is projected to have earnings per share (EPS) of 0.29 yuan, 0.39 yuan, and 0.51 yuan for the years 2024, 2025, and 2026, respectively. The expected revenue for 2024-2026 is 5.542 billion yuan, 6.172 billion yuan, and 6.881 billion yuan, with growth rates of 2.5%, 11.37%, and 11.49% respectively [4][6]. - The company's net profit attributable to shareholders is expected to be 292 million yuan, 402 million yuan, and 518 million yuan for the years 2024, 2025, and 2026, with growth rates of -27.57%, 37.53%, and 29.05% respectively [4][6]. - The company's price-to-earnings (P/E) ratio is projected to be 21.44, 15.59, and 12.08 for the years 2024, 2025, and 2026, while the price-to-book (P/B) ratio is expected to be 1.08, 1.01, and 0.93 [4][6].