隆平高科：水稻种子表现亮眼，瘦身健体持续推进

Investment Rating - The report maintains a "Strong Buy" rating for Longping High-Tech [2][3] Core Views - Longping High-Tech reported a revenue of 2.582 billion yuan for the first half of 2024, a year-on-year decrease of 1.28%, while the net profit attributable to shareholders was 111 million yuan, showing a significant year-on-year increase of 169.19% [2] - The company’s rice seed segment performed well, achieving a revenue of 837 million yuan, up 19.61% year-on-year, with a gross margin of 39.55%, an increase of 1.89 percentage points compared to the same period last year [2] - The corn seed segment faced challenges, with a revenue of 1.228 billion yuan, down 9.87% year-on-year, primarily due to a high base effect from the previous year [2] - The company is actively pursuing a "slimming down" strategy, having disposed of six non-core subsidiaries in the first half of 2024, which significantly reduced investment losses [2][3] Summary by Sections Financial Performance - In the first half of 2024, Longping High-Tech achieved a revenue of 2.582 billion yuan, with a net profit of 111 million yuan [2] - The company expects net profits for 2024, 2025, and 2026 to be 524 million, 766 million, and 1.021 billion yuan respectively, with corresponding EPS of 0.40, 0.58, and 0.78 yuan [3][4] Business Segments - The rice seed business is a key growth driver, with strong sales performance and improved gross margins [2] - The corn seed business is under pressure due to lower international grain prices and reduced domestic demand [2] Competitive Position - Longping High-Tech has a leading position in the breeding industry, with several of its rice and corn varieties recognized as dominant by the Ministry of Agriculture and Rural Affairs for 2024 [3] - The company has made significant investments in biotechnology and has received safety certificates for multiple transgenic traits [3] Future Outlook - The report anticipates a robust growth trajectory for Longping High-Tech, driven by its core business and ongoing restructuring efforts [3][4]