Investment Rating - The report maintains a "BUY" rating for Yuan Longping High-Tech Agriculture [6] Core Views - The company's revenue and net profit for 2024 showed a significant decline, attributed to weak sales of corn seeds due to domestic price pressures and unfavorable conditions in Brazil [2][4] - Despite a challenging first quarter in 2025 with a 32% year-on-year revenue drop, the report expresses optimism about the company's earnings resilience in 2025 and 2026, supported by its leading position in the industry and strong R&D capabilities [3][4] Financial Performance - In 2024, the company reported revenues of 8.566 billion RMB and a net profit of 1.14 billion RMB, reflecting a year-on-year decline of 7.13% and 43.08% respectively [1] - The first quarter of 2025 saw revenues fall to 1.41 billion RMB, with a net loss of 20 million RMB, missing the expected profit range of 650-750 million RMB [1][3] - The report projects net profits for 2025 and 2026 to be 2.12 billion RMB and 4.33 billion RMB respectively, down from previous estimates of 9.02 billion RMB and 11.99 billion RMB [4] Market Outlook - The report anticipates a recovery in the planting season, driven by tightening supply and demand dynamics in the corn market, which may lead to a bottoming out of corn prices in China [3] - The company's strong competitive advantage in hybrid rice and its leading position in the commercialization of genetically modified corn are expected to support earnings growth in the upcoming years [4] Valuation - The target price for the stock is set at 11.34 RMB, based on a price-to-book ratio of 3.0 for 2025, which is higher than the industry average of 2.7 [4] - The report highlights the company's robust R&D capabilities and successful global expansion as key factors for its valuation [4]
隆平高科（000998）：2025年第一季度利润受限，重点关注新销售季节的表现。
华泰金融·2025-05-15 04:43