RINGPU(SZ:300119) HTSC·2025-05-26 08:55Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 36.16 [6][7]. Core Viewpoints - The company has established a comprehensive layout in pet healthcare, including pet medications, vaccines, supply chains, and hospitals, making it a rare investment target in the domestic pet healthcare sector [1][2]. - The domestic pet healthcare market is expected to grow significantly, driven by factors such as the aging of pets, the increasing perception of pets as family members, and the shift towards domestic alternatives [1][2][23]. - The company has shown strong performance in its main business areas, particularly in poultry vaccines and raw materials, leading to an upward revision of profit forecasts [3][4]. Summary by Sections Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 36.16, up from the previous target of RMB 25.8 [6][4]. Company Overview - The company is a leader in poultry vaccines and has made significant strides in the pet healthcare sector, with a comprehensive strategy that includes the acquisition of a supply chain platform covering over 7,000 pet hospitals and 3,400 pet stores [2][11][36]. - The company has launched several innovative products, including the first domestic cat trivalent vaccine, enhancing its competitive edge in the market [36][39]. Financial Performance - The company is expected to achieve a net profit of RMB 5.26 billion, RMB 6.18 billion, and RMB 7.12 billion for the years 2025, 2026, and 2027, respectively, reflecting significant growth [4][5]. - Revenue is projected to grow from RMB 3.07 billion in 2024 to RMB 3.85 billion in 2025, with a year-on-year growth rate of 25.57% [5][70]. Market Dynamics - The domestic pet healthcare market is projected to reach approximately RMB 841 billion by 2024, making it the second-largest segment after pet food, with a compound annual growth rate (CAGR) of about 16% from 2019 to 2024 [2][17]. - The increasing number of pet owners and the rising spending per pet are expected to drive demand for pet healthcare services and products [17][23]. Strategic Initiatives - The company has implemented a large customer strategy that is yielding positive results, particularly in its poultry vaccine business, which is expected to continue its growth trajectory [3][60]. - The acquisition of a majority stake in a supply chain company is anticipated to enhance market penetration and improve distribution efficiency for pet healthcare products [36][37].