Investment Rating - The report maintains a "Recommended" investment rating for the company [5]. Core Insights - The company reported a revenue of 51.88 million yuan for the first three quarters of 2024, a year-on-year decrease of 4.85%. However, the net profit attributable to shareholders increased by 20.04% to 9.54 million yuan, while the non-recurring net profit turned to a loss of 2.20 million yuan [2][3]. - In Q3 2024, the company achieved a revenue of 4.74 million yuan, down 34.98% year-on-year, but the net profit attributable to shareholders surged by 166.79% to 1.80 million yuan. Overall, the company's performance in a weak industry backdrop is considered acceptable [2][3]. - The company has increased its R&D investment significantly, leading to a rise in expense ratios: sales expense ratio at 20.33%, management expense ratio at 18.63%, and R&D expense ratio at 16.55%, all of which are higher than in previous years. The increase in sales expenses is attributed to travel and promotion costs in regions like Huanghuaihai, while management expenses are closely related to the company's listing [2][3]. Financial Forecast - The company is expected to generate revenues of 358.43 million yuan, 421.89 million yuan, and 480.13 million yuan for 2024, 2025, and 2026, respectively, representing year-on-year growth rates of 24.35%, 17.70%, and 13.80%. The net profit attributable to shareholders is projected to be 59.12 million yuan, 66.07 million yuan, and 71.67 million yuan for the same years, with growth rates of 11.09%, 11.77%, and 8.47% [3][8]. - The earnings per share (EPS) are forecasted to be 0.83 yuan, 0.93 yuan, and 1.01 yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (PE) ratios of 16.17, 14.47, and 13.34 [3][8]. Market Environment - The company is positioned to expand its market share due to supportive policies, as China's seed market is the second largest globally, with corn accounting for nearly 25%. The implementation of the "Food Security Guarantee Law" on June 1, 2024, is expected to create a favorable environment for the healthy development of the seed industry [3][2].
康农种业点评报告：业绩符合预期，区域扩张致费用率提升