JINYU(SH:600201) Guohai Securities·2024-09-04 10:09Investment Rating - The investment rating for the company is "Buy" [5][8]. Core Views - The company's revenue for H1 2024 was CNY 612 million, a decrease of 10.66% year-on-year, while the net profit attributable to shareholders was CNY 123 million, down 8.56% year-on-year [2]. - Despite the overall decline in revenue and profit, the company experienced significant growth in its ruminant vaccines, driven by the launch of several key new products [2][3]. - The company has optimized its production processes, leading to a slight increase in gross margin and net profit margin [3]. - R&D investment reached CNY 75 million, accounting for 12.26% of revenue, with several important products making progress towards market registration [3]. Summary by Sections Financial Performance - In H1 2024, the company reported a revenue of CNY 612 million, a decline of 10.66% year-on-year, and a net profit of CNY 123 million, down 8.56% year-on-year [2]. - For Q2 2024, revenue was CNY 264 million, a decrease of 17.74% year-on-year, and net profit was CNY 17 million, down 37.47% year-on-year [2]. Market Position - The company’s ruminant vaccines saw growth despite a challenging market, with a notable increase in sales from high-end products [2][3]. - The poultry vaccine segment also showed promise, with a subsidiary reporting a revenue increase of 10.45% year-on-year [2]. R&D and Product Development - R&D investment was CNY 75 million, representing 12.26% of revenue, with several products entering the new veterinary drug registration phase [3]. - Key products such as the bovine vaccines and cat vaccines are expected to launch soon, indicating a positive outlook for future revenue growth [3]. Profitability Forecast - The revenue forecast for 2024-2026 is adjusted to CNY 1.566 billion, CNY 1.704 billion, and CNY 1.872 billion, with corresponding net profits of CNY 306 million, CNY 340 million, and CNY 403 million [3][6]. - The projected P/E ratios for the next three years are 22x, 20x, and 17x, reflecting an improving profitability outlook [3][6].