Long Ping High-Tech(SZ:000998) Guoxin Securities·2025-05-05 00:55Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Viewpoints - The corn seed market is experiencing a downturn, leading to short-term pressure on revenue and profits. In 2024, the company achieved operating revenue of 8.566 billion yuan, a decrease of 7.13% year-on-year, and a net profit attributable to the parent company of 114 million yuan, down 43.08% year-on-year. Excluding non-recurring gains and losses, the net profit was -289 million yuan, a significant decline of 159.31% year-on-year [1][8] - The hybrid rice seed business has seen growth in both volume and profit due to innovation and business synergy, with revenue reaching 2.008 billion yuan in 2024, an increase of 12.97% year-on-year [2] - The company is adjusting production and reducing seed inventory, resulting in improved inventory turnover efficiency. The inventory turnover days decreased by approximately 20 days year-on-year to 168.6 days in 2024 [3] Summary by Sections Revenue and Profit Performance - In 2024, the company reported total operating revenue of 85.66 billion yuan, down 7.13% year-on-year, primarily due to the global grain price decline affecting corn seed sales [1][8] - The net profit attributable to the parent company for 2024 was 1.14 billion yuan, a decrease of 43.08% year-on-year, with significant losses attributed to reduced main business income and increased financial expenses due to exchange rate fluctuations [1][8] Segment Performance - The corn seed segment generated revenue of 50.21 billion yuan in 2024, a decline of 16.74% year-on-year, with a gross margin of 34.63%, down 5.38 percentage points [2] - The hybrid rice seed segment achieved revenue of 20.08 billion yuan in 2024, an increase of 12.97% year-on-year, with a gross margin of 37.60%, up 1.23 percentage points [2] Financial Forecasts - The company has revised its net profit forecasts for 2025 and 2026 to 200 million yuan and 470 million yuan, respectively, down from previous estimates of 370 million yuan and 620 million yuan [19] - The projected earnings per share for 2025, 2026, and 2027 are 0.2 yuan, 0.4 yuan, and 0.5 yuan, respectively [19] Market Position and Future Outlook - As a leading player in the domestic corn seed market, the company is expected to benefit from the increasing penetration of genetically modified corn, which may lead to a rebound in both volume and profit in the future [19]