Kingdomway(SZ:002626) Tianfeng Securities·2024-11-03 06:07Investment Rating - The report maintains a "Buy" rating for the company, with a target price indicating a potential return of over 20% within the next six months [5][13]. Core Insights - The company reported significant profit growth in Q3 2024, driven by rising prices of Vitamin A and a favorable market environment following supply disruptions from major global producers [1][2]. - The company is well-positioned to benefit from the expanding global health supplement market, leveraging its competitive advantages in nutritional health products and feed additives [1][3]. - The company's revenue for Q3 2024 reached 819 million yuan, a year-on-year increase of 6.55%, while the net profit attributable to shareholders was 90.67 million yuan, up 52.42% year-on-year [1][2]. Revenue Summary - For the first three quarters of 2024, the company achieved a revenue of 2.343 billion yuan, reflecting a year-on-year growth of 0.95% [1]. - The Q3 revenue growth is attributed to the company's strong market position and increasing consumer health awareness, which is expected to sustain its growth trajectory [1][3]. Profit Summary - The gross profit margin for the first three quarters of 2024 was 38.03%, with a net profit of 221 million yuan, down 9.35% year-on-year [2]. - The Q3 net profit growth of 52.42% is linked to the price increases in various vitamin products following supply disruptions caused by an explosion at a major producer's facility [2]. Growth Drivers - The company benefits from its technological advantages in green manufacturing and high-quality raw materials, enhancing its competitiveness in both B2B and B2C markets [3]. - Policy support for the health industry, particularly focusing on the aging population, presents significant growth opportunities for the company [3]. - The company is actively expanding into new business areas, including a partnership for the development of astaxanthin products and plans for a convertible bond issuance to fund expansion projects [3]. Financial Forecast - Revenue projections for FY2024 to FY2026 are estimated at 3.748 billion yuan, 4.621 billion yuan, and 5.758 billion yuan, representing year-on-year growth rates of 20.8%, 23.3%, and 24.6% respectively [4]. - Net profit forecasts for the same period are 348 million yuan, 515 million yuan, and 688 million yuan, with growth rates of 25.7%, 48.2%, and 33.4% respectively [4].