Solbar Ningbo Protein Technology (SH:603231) Haitong Securities·2024-11-06 01:58Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The company has faced short-term performance pressure due to a decline in product sales prices, with total revenue for the first three quarters of 2024 at 1.155 billion yuan, down 10.36% year-over-year, and a net profit of 92 million yuan, down 20.75% year-over-year [4][5] - In Q3 2024 alone, the company reported revenue of 383 million yuan, a decrease of 13.15% year-over-year, and a net profit of 21 million yuan, down 51.95% year-over-year [6] - The gross profit margin has decreased, with a 2.75 percentage point drop year-over-year for the first three quarters of 2024, primarily due to a larger decline in product sales prices compared to raw material prices [5] - The company has expanded its distributor network, with 251 domestic and 139 overseas distributors, an increase of 24 and 21 respectively [6] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved total revenue of 1.155 billion yuan, a year-over-year decrease of 10.36%, and a net profit of 92 million yuan, down 20.75% year-over-year [4] - In Q3 2024, the company reported revenue of 383 million yuan, a decrease of 13.15% year-over-year, and a net profit of 21 million yuan, down 51.95% year-over-year [6] - The gross profit margin for the first three quarters of 2024 was 11.9%, down from 13.6% in 2023 [8] Revenue and Profit Forecast - The company is expected to generate revenues of 1.602 billion yuan, 1.764 billion yuan, and 1.972 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 127 million yuan, 163 million yuan, and 187 million yuan [7][10] - The estimated earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 0.66 yuan, 0.85 yuan, and 0.98 yuan respectively [7][10] Valuation - The company is assigned a price-to-earnings (PE) ratio of 20-25 times for 2025, leading to a fair value range of 17.00 to 21.25 yuan per share [7] - The average PE ratio for comparable companies is noted to be 38.0 times for 2025 [9]