RINGPU(SZ:300119) AVIC Securities·2025-05-06 02:10Investment Rating - The investment rating for the company is "Buy," indicating an expected return of over 10% relative to the CSI 300 index in the next six months [3][13]. Core Insights - The company reported a revenue of 3.07 billion yuan in 2024, representing a year-on-year growth of 13.32%. However, the net profit attributable to shareholders decreased by 33.70% to 301 million yuan, primarily due to non-recurring losses and high base effects from asset disposals in the previous year. The adjusted net profit showed a smaller decline of 11.84%, indicating stable core operations [1][2]. - The operating cash flow improved significantly, reaching 736 million yuan, a year-on-year increase of 79.35%, reflecting a notable enhancement in cash flow conditions [1]. - The company is experiencing growth in both traditional and new business segments, with the traditional animal health business maintaining stability despite increased competition. The pet segment has become a significant growth driver, contributing 6.90 billion yuan in revenue, accounting for 22.47% of total revenue [2]. Summary by Sections Financial Performance - In Q1 2024, the company achieved a revenue of 822 million yuan, a 20.00% increase year-on-year. The net profit attributable to shareholders was 116 million yuan, up 28.45%, while the adjusted net profit rose by 19.65% to 93 million yuan, indicating robust growth in core business operations [1][2]. - The revenue from poultry biological products reached 1.08 billion yuan, growing by 15.90%, with a gross margin of 63.17%. The livestock biological products segment saw a revenue increase of 49.78% to 211 million yuan, benefiting from acquisitions [2]. Business Segments - The traditional animal health business faced challenges due to market competition, with the veterinary preparations and raw materials segment reporting a revenue decline of 5.83% to 1.02 billion yuan and a gross margin decrease of 2.73 percentage points to 36.50% [2]. - The pet segment is emerging as a key growth area, with a diverse product pipeline including mRNA vaccines and oral dewormers, contributing significantly to overall revenue growth [2]. Strategic Initiatives - The company has expanded its international presence, registering 35 products in seven countries, including Indonesia and Sri Lanka, and has passed GMP audits, enhancing its global market strategy [2].