CABIO(SH:688089) Guoyuan Securities·2024-10-30 00:30Investment Rating - The report maintains a "Buy" rating for the company [2]. Core Insights - The company announced its Q3 2024 results, reporting total revenue of 387 million yuan, a year-on-year increase of 19.19%, and a net profit attributable to shareholders of 84 million yuan, up 38.86% year-on-year [2]. - The company plans to acquire 65% of Shanghai Ouyi Biomedical Technology Co., Ltd. through a combination of issuing shares and cash payments, while also raising matching funds [2]. - The demand for ARA&DHA, key products for the company, is expected to grow due to the new national standards for infant formula and the expiration of major patents held by competitors [2]. Financial Performance - For the first three quarters of 2024, the company's gross margin was 39.78%, a decrease of 1.39 percentage points year-on-year, while the net profit margin was 21.67%, an increase of 3.07 percentage points year-on-year [2]. - In Q3 2024, the gross margin dropped to 35.02%, down 6.37 percentage points year-on-year, primarily due to changes in product and customer structure [2]. - The company expects net profits for 2024, 2025, and 2026 to be 113 million yuan, 140 million yuan, and 170 million yuan, respectively, with year-on-year growth rates of 23.73%, 23.87%, and 21.49% [2][3]. Market Opportunities - The implementation of the new national standards for infant formula is anticipated to increase the demand for ARA&DHA [2]. - The expiration of major patents held by DSM is expected to provide significant growth opportunities for the company's ARA products in overseas markets [2].