Long Ping High-Tech(SZ:000998) Bank of China Securities·2025-12-11 05:10Investment Rating - The report assigns a rating of "Buy" to the company, with a market price of RMB 9.55 and a sector rating of "Outperform" [1]. Core Insights - The report highlights that Longping High-Tech is a leading player in the domestic seed industry, with a well-established industrial layout and a focus on high-quality development. The company's research capabilities are industry-leading, and its asset quality is continuously improving, leading to a positive outlook for its medium to long-term development [2][5]. Financial Performance - The company is expected to achieve revenues of RMB 85.8 billion, RMB 92.2 billion, and RMB 99.3 billion for the years 2025 to 2027, reflecting year-on-year growth rates of +0.1%, +7.5%, and +7.7% respectively. The net profit attributable to shareholders is projected to be RMB 2.0 billion, RMB 3.1 billion, and RMB 4.5 billion for the same years, with growth rates of +71.4%, +57.6%, and +46.8% respectively. The current market capitalization corresponds to P/E ratios of 71.9X, 45.6X, and 31.1X for the years 2025 to 2027 [6][8]. Company Overview - Longping High-Tech, established in 1999 and listed in 2000, is recognized as a modern high-tech seed enterprise. The company has a comprehensive business structure that includes seed operations and agricultural services, focusing on major crops such as rice, corn, and wheat, as well as specialized crops like cucumbers and sunflowers [16][18]. Research and Development - The company leads the industry in R&D investment, with RMB 6.9 billion allocated in 2024, representing 9.1% of its revenue. The number of dedicated R&D personnel reached 712, accounting for 17.02% of the total workforce. The company has significantly increased its plant variety applications, with 113 authorized in 2024 compared to just 12 in 2016 [31][39]. Market Position - Longping High-Tech holds a dominant position in the seed market, with a market share of 42% in corn seeds and 36% in rice seeds. The company is actively expanding its international presence, particularly in Brazil, where it ranks among the top three corn seed companies [17][44]. Strategic Acquisitions - The company has accelerated its acquisition strategy since the entry of CITIC Group as a major shareholder in 2016, enhancing its market position and operational capabilities through various acquisitions in the seed industry [28][30].