Yili Chuanning Biotechnology (301301) Huaxin Securities·2024-10-23 01:09Investment Rating - The report assigns a "Buy" rating for the company, marking the first coverage of the stock [2]. Core Views - The company has achieved a revenue of 4,456.27 million yuan in the first three quarters of 2024, representing a year-on-year growth of 24.43%. The net profit attributable to shareholders reached 1,075.92 million yuan, a significant increase of 68.07% compared to the same period last year [1][2]. - Continuous optimization of processes and cost reduction efforts are driving improvements in gross margins, with a gross margin of 37.11% in Q3 2024, up 3.98 percentage points year-on-year [1]. - Export demand is robust, with stable supply conditions. The company has seen growth in sales of penicillin intermediates, thiocyanate erythromycin, and cephalosporin intermediates, supported by strong overseas demand for antibiotics [1]. - The company is expanding into synthetic biology, with several products entering production stages, including squalene and inositol, which are expected to contribute to future growth [1]. Summary by Sections Financial Performance - Revenue projections for 2024-2026 are 60.69 billion yuan, 68.38 billion yuan, and 75.62 billion yuan, respectively. Net profits are forecasted at 14.55 billion yuan, 17.20 billion yuan, and 19.75 billion yuan, with EPS expected to be 0.65 yuan, 0.77 yuan, and 0.89 yuan [4][5]. Market Position - The company benefits from a favorable market environment for pharmaceutical intermediates, which provides stable cash returns and supports its expansion into synthetic biology [1][4]. Growth Potential - The report highlights the company's potential in synthetic biology, with ongoing projects and collaborations aimed at enhancing production capabilities and market reach [1][4].