Long Ping High-Tech(000998) 国泰君安·2024-09-28 23:37Investment Rating - The investment rating for the company is "Buy" [4] Core Views - The company has strong competitiveness in rice and corn seeds, particularly with high-quality genetically modified corn varieties gaining market acceptance in the 2024 planting season. The increasing penetration of genetically modified corn is expected to expand the company's corn seed promotion area, driving performance growth [2][8] - The target price has been adjusted to 15.90 yuan from the previous 24.68 yuan, while maintaining the "Buy" rating. The company has achieved consolidation and expansion in overseas business, leading to an upward revision of revenue and profit forecasts for 2024 [8][9] Financial Summary - The company’s revenue is projected to grow from 9,223 million yuan in 2023 to 10,262 million yuan in 2024, representing a 11.3% increase. Net profit is expected to rise significantly from 200 million yuan in 2023 to 534 million yuan in 2024, marking a 167.1% increase [9][11] - Earnings per share (EPS) is forecasted to be 0.41 yuan in 2024, increasing to 0.53 yuan in 2025 and 0.76 yuan in 2026 [8][9] - The company’s net asset return rate is expected to improve from 3.6% in 2023 to 9.9% in 2024, and further to 15.3% by 2026 [9][11] Business Development - The company is a leader in hybrid rice seed business globally, with new brands and varieties rapidly gaining market share, contributing to strong sales growth. The latest rice varieties have shown significant breakthroughs in pest resistance and other desirable traits [8][9] - The company leads in hybrid corn seed business in China, with its genetically modified corn varieties expected to see increased market share as planting areas expand in 2024 [8][9]