RINGPU(300119) Guolian Securities·2024-10-30 10:02Investment Rating - The report assigns an "Accumulate" rating for the company, marking it as the first rating given [4]. Core Views - The company has a comprehensive layout in poultry products, with ongoing efforts in vaccine linkage and large customer development to enhance market share. The acquisition of Betway Antai in March 2024 has strengthened its capabilities in livestock services [2][6]. - The company has developed a complete pet health care system, covering disease prevention, health diagnosis, and treatment, with over 20 pet products. The self-developed cat trivalent vaccine, Rui Miao Shu, has achieved impressive sales, becoming a significant product in the pet product cluster [2][6]. - The demand for animal health products is expected to recover, with a promising outlook for the pet health market in China, driven by the increasing number of pet owners and rising health awareness [6][23]. Summary by Sections 1. Poultry and Livestock Health Demand Recovery - The animal health industry has a significant market size but low concentration. The total sales of China's veterinary drug industry reached 67.345 billion yuan, with a compound annual growth rate of 5.91% over the past decade [15]. - The recovery of livestock inventory is anticipated to boost the demand for animal health products, particularly in the pig and poultry sectors, as prices and profits improve [22][20]. 2. Steady Development of Poultry Sector - The company has a robust product lineup in poultry vaccines, including high pathogenic avian influenza vaccines, which are in high demand. The acquisition of Betway Antai has enhanced the company's ability to provide comprehensive disease solutions for livestock [7][9]. - The poultry vaccine segment is expected to maintain steady growth, supported by ongoing customer development and product sales [9][10]. 3. Strong Competitiveness in Pet Health - The company has established a complete pet health care system, with significant advancements in pet deworming products. The self-developed cat trivalent vaccine has seen substantial sales, indicating strong market competitiveness [6][9]. - The pet health market in China is experiencing rapid growth, with domestic brands gaining momentum against imported products. The market is projected to continue expanding due to increasing pet ownership and health awareness [25][23]. 4. Financial Forecast and Valuation - The company is expected to achieve revenues of 2.685 billion yuan, 2.968 billion yuan, and 3.340 billion yuan from 2024 to 2026, with a compound annual growth rate of 11.62%. The projected net profit for the same period is 523 million yuan, 598 million yuan, and 652 million yuan [11][8]. - The report suggests a target price of 19.04 yuan based on a 17x price-to-earnings ratio for 2024, reflecting a potential recovery in valuation as market sentiment improves [11][8].