Guobang Pharma (605507) KAIYUAN SECURITIES·2025-03-28 06:08Investment Rating - The investment rating for Guobang Pharmaceutical is "Buy" (maintained) [1] Core Views - The company is expected to achieve rapid growth in 2024, with revenue projected at 5.891 billion yuan (up 10.12% year-on-year) and net profit attributable to shareholders at 782 million yuan (up 27.61% year-on-year) [4][5] - The report highlights a turning point in the animal health raw materials segment, with significant sales growth anticipated [4][5] - The current stock price corresponds to a price-to-earnings (PE) ratio of 11.6 for 2025, indicating high valuation attractiveness [4] Financial Performance Summary - In 2024, the company is expected to generate revenue of 58.91 billion yuan, with a net profit of 7.82 billion yuan and a gross margin of 25% [4][5] - The fourth quarter of 2024 is projected to see revenue of 14.73 billion yuan (up 13.64% year-on-year) and a net profit of 2.03 billion yuan (up 64.28% year-on-year) [4] - The company’s revenue from pharmaceutical raw materials is expected to reach 24.77 billion yuan (up 11.74% year-on-year) with a gross margin of 28.36% [5] - The animal health raw materials segment is projected to generate 18.31 billion yuan in revenue (up 11.81% year-on-year) with a sales volume increase of 31.19% [5] Research and Development - The company has over 530 R&D personnel, with R&D expenses expected to reach 215 million yuan in 2024, reflecting a 12.88% increase [6] - The R&D expense ratio is projected to be 3.65% in 2024 [6] Valuation Metrics - The projected earnings per share (EPS) for 2025 is 1.78 yuan, with a PE ratio of 11.6 [7] - The company’s return on equity (ROE) is expected to improve to 11.0% by 2025 [7] - The projected net profit for 2025 is 995 million yuan, reflecting a year-on-year growth of 27.3% [7]