SuKen Agriculture(SH:601952) KAIYUAN SECURITIES·2025-04-29 02:23Investment Rating - The investment rating for Su Kan Agricultural Development (601952.SH) is "Buy" (maintained) [1] Core Views - The report indicates that the decline in grain prices has led to a contraction in sales scale, with expectations for a recovery in grain prices to improve performance [4] - The company reported a revenue of 10.917 billion yuan in 2024, a year-on-year decrease of 10.28%, and a net profit attributable to shareholders of 730 million yuan, down 10.56% year-on-year [4] - For Q1 2025, the revenue was 2.133 billion yuan, a decrease of 8.70% year-on-year, and the net profit attributable to shareholders was 82 million yuan, down 36.18% year-on-year [4] - The report has adjusted the profit forecasts for 2025-2026 and added a forecast for 2027, estimating net profits of 865 million yuan, 907 million yuan, and 960 million yuan for 2025-2027 respectively [4] Financial Summary - The total market capitalization is 13.601 billion yuan, with a current stock price of 9.87 yuan [1] - The earnings per share (EPS) for 2025-2027 are projected to be 0.63 yuan, 0.66 yuan, and 0.70 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 15.9, 15.2, and 14.4 [4] - The company’s gross margin for 2024 is reported at 14.5%, with a net profit margin of 6.7% [10][11] Business Segments - In the planting business, revenue for 2024 was 3.646 billion yuan, down 4.13% year-on-year, with a gross margin of 25.96%, up 2.32 percentage points [5] - The seed business saw revenue of 1.812 billion yuan, a decline of 21.47% year-on-year, with a gross margin of 10.97% [6] - The processing business reported a slight revenue decline to 3.606 billion yuan, down 5.48% year-on-year, but with an increase in profitability [7]