China Resources Boya Bio-pharmaceutical (300294) Guohai Securities·2024-10-27 05:41Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1][2]. Core Views - The company is expected to achieve stable growth through both organic and external expansion, particularly in its blood products business [1][2]. - The company has recently obtained a single plasma collection license and completed the acquisition of Green Cross Hong Kong Holdings, which is anticipated to enhance its blood products business [2]. Financial Performance Summary - For the first three quarters of 2024, the company reported revenue of 1.245 billion yuan, a year-over-year decrease of 43.16%, and a net profit attributable to shareholders of 413 million yuan, down 11.07% year-over-year [2]. - In Q3 2024, the company generated revenue of 349 million yuan, reflecting a 46.21% year-over-year decline, with a net profit of 97 million yuan, down 29.98% year-over-year [2]. - The company collected 387.44 tons of raw plasma in the first three quarters of 2024, marking a 12.39% increase compared to the same period last year [2]. Earnings Forecast - Revenue projections for 2024, 2025, and 2026 are 1.789 billion yuan, 1.970 billion yuan, and 2.171 billion yuan, respectively, with corresponding net profits of 537 million yuan, 599 million yuan, and 662 million yuan [2][6]. - The report anticipates a significant recovery in net profit growth, projecting a 126% increase in 2025 and 12% in 2026 [6][8]. Valuation Metrics - The projected P/E ratios for 2024, 2025, and 2026 are 30.24X, 27.11X, and 24.52X, respectively [6][8]. - The report indicates a steady improvement in return on equity (ROE), expected to rise from 3% in 2023 to 8% by 2026 [6][8].