Investment Rating - The report maintains an "Accumulate" investment rating for the company, indicating a projected relative increase of 5% to 15% compared to the CSI 300 index over the next six months [2][14]. Core Insights - The company's performance in the first half of 2024 fell short of expectations, with a significant decline in revenue and a shift to net losses. The company reported a revenue of 51.79 million yuan, down 52.75% year-on-year, and a net loss attributable to shareholders of 4.27 million yuan, compared to a profit in the previous year [2][3]. - The corn seed market is experiencing oversupply, leading to increased returns of corn seeds and a decline in revenue. The average price of corn in China dropped to 2,389 yuan per ton, marking a decrease of 13.22% quarter-on-quarter and 14.59% year-on-year, the lowest since October 2020 [2][3]. - The company is increasing its research and development (R&D) investments to maintain its core competitiveness, with R&D expenses amounting to 7.30 million yuan, representing 14.10% of revenue, an increase of 66.16% year-on-year [3]. Financial Performance Summary - For the first half of 2024, the company reported: - Revenue from corn seeds: 12.14 million yuan, down 82.07% year-on-year, with a gross margin of 12.38% [3]. - Revenue from peanut seeds: 34.36 million yuan, down 11.08% year-on-year, with a gross margin of 18.18% [3]. - Revenue from wheat seeds: 2.51 million yuan, with a gross margin of 20.68% [3]. - The company forecasts net profits of 3.9 million yuan, 6.3 million yuan, and 8.6 million yuan for 2024, 2025, and 2026 respectively, with corresponding earnings per share (EPS) of 0.23 yuan, 0.38 yuan, and 0.52 yuan [3][5]. Market Context - The corn seed industry is facing a challenging environment with strong supply and weak demand, leading to price declines. The report anticipates a potential balance in supply and demand in the third quarter of 2024 [2][3]. - The report highlights the ongoing commercialization of biotechnology in breeding, which may provide growth opportunities for related seed companies in the future [2].
秋乐种业：2024年中报点评：玉米种子需求承压，加强研发维持核心竞争力