Guobang Pharma (SH:605507) Tai Ping Yang·2025-03-11 14:23Investment Rating - The report maintains a "Buy" rating for Guobang Pharmaceutical (605507) with a target price of 25.00, compared to the last closing price of 19.15 [1]. Core Views - The company's stock repurchase plan, amounting to between 100 million and 200 million RMB, is seen as a demonstration of confidence and aims to enhance investor trust and improve employee motivation through stock ownership plans [4][5]. - The veterinary medicine sector is expected to enter a price increase cycle, with demand for veterinary raw materials likely to rise due to the recovery of the pig farming industry, which began to turn profitable in Q2 2024 [5]. - The company has significantly expanded its fixed assets from 1.178 billion RMB in 2019 to 3.693 billion RMB in 2023, indicating a more than threefold increase in capacity [6]. Financial Projections - Revenue projections for the company are as follows: 2024 at 6.001 billion RMB, 2025 at 6.817 billion RMB, and 2026 at 7.828 billion RMB, with corresponding net profits of 801 million RMB, 1.004 billion RMB, and 1.204 billion RMB respectively [7]. - The report forecasts a revenue growth rate of 12.19% for 2024, 13.59% for 2025, and 14.83% for 2026, with net profit growth rates of 30.76%, 25.37%, and 19.90% for the same years [11]. Market Position - The company holds a high market share in its main products and has a complete industrial chain, with expectations to achieve 30 globally leading products, 80 products in regular production, and the capability to produce 120 products [7].