DBN Group(002385) 天风证券·2024-10-25 13:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 4.62 RMB [5] Core Views - The company achieved a turnaround in the first three quarters of 2024, with a net profit of 133 million RMB, a year-on-year increase of 114.69% [1] - The company's gross margin improved to 14.09%, up 4.68 percentage points year-on-year [1] - The company's pig breeding business showed strong performance in Q3 2024, with pig sales revenue reaching 3.18 billion RMB, a year-on-year increase of 34.7% [2] - The company's seed business is expected to become a new growth driver, with a projected increase in corn seed planting area of 15-20% in the 2024 planting season [3] Financial Performance - In Q3 2024, the company's revenue was 7.047 billion RMB, a year-on-year decrease of 14.73%, but a quarter-on-quarter increase of 10.33% [2] - The company's net profit in Q3 2024 was 289 million RMB, a year-on-year increase of 315.37% and a quarter-on-quarter increase of 440.31% [2] - The company's gross margin in Q3 2024 was 15.92%, up 5.07 percentage points year-on-year [2] - The company's contract liabilities increased by 730 million RMB in Q3 2024, reflecting strong seed pre-sales [3] Business Segments - Pig Breeding: The company's pig sales volume in Q3 2024 was 1.428 million heads, with a sales revenue of 3.18 billion RMB [2] - Feed: The company's feed sales volume in the first half of 2024 was 2.534 million tons, with a gross margin of 12.7% [2] - Seed: The company has obtained safety certificates for four genetically modified corn traits, with a licensing fee of 8-10 RMB per mu [3] Future Outlook - The company's revenue is expected to reach 33.082 billion RMB in 2024, 38.848 billion RMB in 2025, and 44.594 billion RMB in 2026 [3] - The company's net profit is expected to be 252.49 million RMB in 2024, 1.059 billion RMB in 2025, and 1.239 billion RMB in 2026 [3] - The company's genetically modified technology is leading, and the seed business is expected to become a new growth driver [3]