RINGPU(300119) 民生证券·2024-11-01 04:00Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on expected benefits from industry recovery and market expansion opportunities in the pet medicine sector [3][5]. Core Insights - The company reported a revenue of 1.747 billion yuan for the first three quarters of 2024, a year-on-year increase of 10.06%, while the net profit attributable to shareholders decreased by 10.58% to 245 million yuan [1]. - In Q3 2024, the company achieved a revenue of 648 million yuan, reflecting a year-on-year growth of 9.22% and a quarter-on-quarter increase of 14.48%. The net profit for Q3 was 86 million yuan, down 10.30% year-on-year but up 19.60% quarter-on-quarter [1]. - The company is experiencing improved profitability in the livestock sector, particularly in pig and poultry farming, due to rising prices and effective product promotion strategies [1][2]. - The company has significantly increased its R&D investment, with the R&D expense ratio rising from 5.9% in 2021 to 7.7% in Q3 2024, leading to product innovation and market expansion [2]. - The acquisition of a controlling stake in Biwei Antai enhances the company's portfolio in the foot-and-mouth disease vaccine market, which is crucial for livestock health and has high market demand [2]. Financial Summary - The projected net profits for the company from 2024 to 2026 are estimated at 352 million, 461 million, and 532 million yuan, respectively, with corresponding EPS of 0.76, 0.99, and 1.14 yuan [3][4]. - The company is expected to maintain a PE ratio of 24, 18, and 16 for the years 2024, 2025, and 2026, respectively, indicating a favorable valuation trend [4][3]. - Revenue forecasts for the years 2024 to 2026 are projected at 2.571 billion, 2.987 billion, and 3.358 billion yuan, with growth rates of 14.3%, 16.2%, and 12.4% [4][7].