Runben Biotechnology (SH:603193) Soochow Securities·2024-10-22 17:06Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a revenue of 1.04 billion yuan for the first three quarters of 2024, representing a year-over-year increase of 26.0%. The net profit attributable to the parent company was 260 million yuan, up 44.4% year-over-year [2] - The company is successfully cultivating new products, with the baby care segment maintaining high growth. In Q3 2024, revenue from baby care, mosquito repellent, and essential oil products increased by 27%, 16%, and 15% year-over-year, respectively [2] - The gross margin continues to trend upwards, with a gross margin of 58.3% for the first three quarters of 2024, an increase of 2.2 percentage points year-over-year [2] Financial Performance Summary - Total revenue (in million yuan) is projected to grow from 1,032.96 in 2023 to 1,339.92 in 2024, reflecting a year-over-year growth of 29.72% [1] - The net profit attributable to the parent company is expected to rise from 226.03 million yuan in 2023 to 312.69 million yuan in 2024, indicating a year-over-year increase of 38.34% [1] - The latest diluted EPS is forecasted to increase from 0.56 yuan in 2023 to 0.77 yuan in 2024 [1] Cash Flow and Valuation Metrics - Operating cash flow for 2024 is projected to be 302 million yuan, up from 253 million yuan in 2023 [9] - The company’s P/E ratio is expected to decrease from 47.40 in 2023 to 34.26 in 2024, indicating an improving valuation [9] - The return on equity (ROE) is projected to increase from 11.76% in 2023 to 14.47% in 2024 [9]