CCGB(SZ:300138) HTSC·2025-04-08 11:25Investment Rating - The investment rating for the company is "Accumulate" with a target price of 11.52 RMB [7][8]. Core Views - The company is expected to experience a recovery in profitability in Q1 2025, with a projected net profit of 0.9-1.2 billion RMB, representing a year-on-year growth of 133.2% to 211.0% due to a short-term increase in cottonseed protein prices [1]. - The company has maintained a strategy of increasing market share by managing inventory and pricing advantages, anticipating a cyclical rebound [4]. Summary by Sections Financial Performance - In 2024, the company's revenue and net profit attributable to shareholders were 6.99 billion RMB and 0.94 billion RMB, respectively, showing a year-on-year change of +1.8% and -80.4% [1]. - The gross profit margin for 2024 decreased by 3.6 percentage points to 8.0%, primarily due to lower product prices and a decline in profitability [3]. Product Performance - The company's revenue from its main businesses, including plant extraction and cottonseed, was 31.3 billion RMB and 34.7 billion RMB, with year-on-year changes of +8.3% and -2.1% respectively [2]. - Key products such as chili extract and lutein showed stable sales, while the company also saw significant growth in its tiered products like silymarin and stevia [2]. Future Outlook - The company has adjusted its earnings forecasts for 2025 and 2026, expecting EPS of 0.64 RMB and 0.78 RMB, respectively, reflecting a downward revision of 12% and 13% [4]. - The target price of 11.52 RMB corresponds to a 18x PE ratio for 2025, indicating a potential upside from the current market price [4].