CABIO(688089) 天风证券·2024-03-23 16:00Investment Rating - The report maintains a "Buy" rating for the company with a 6-month target price [1] Core Views - The company's fundamentals have stabilized, with net profit growing for four consecutive quarters, and the overall trend is expected to improve [10] - The company is advancing its synthetic biology technology, with its HMO product undergoing food safety certification and expected to complete capacity construction in the first half of 2024 [10] - The company has established eight major technology platforms and is building a synthetic biology innovation center in Wuhan, which will serve as a national-level incubator for the industry [12] Financial Data and Valuation - Revenue is expected to grow from CNY 445.46 million in 2023E to CNY 756.83 million in 2025E, with a CAGR of 34.6% [2] - Net profit attributable to the parent company is projected to increase from CNY 91.52 million in 2023E to CNY 152.51 million in 2025E, with a CAGR of 30.29% [2] - The company's P/E ratio is expected to decrease from 27.38x in 2023E to 16.43x in 2025E, indicating improving valuation metrics [2] Growth and Profitability - The company's revenue growth rate is expected to accelerate from 2.78% in 2023E to 34.6% in 2025E, driven by new product launches and market expansion [2] - EBITDA is forecasted to grow from CNY 129.97 million in 2023E to CNY 219.94 million in 2025E, reflecting improved operational efficiency [2] - The company's EPS is projected to increase from CNY 0.54 in 2023E to CNY 0.91 in 2025E, indicating strong earnings growth potential [2] Industry and Market Position - The company operates in the basic chemical industry, specifically in the chemical products sector, and is positioned as a leader in synthetic biology technology [1][12] - The company's HMO product is expected to benefit from the implementation of new infant formula standards, driving demand for its ARA and DHA products [19] Operational Highlights - The company's net profit in Q4 2023 increased by 330.54% YoY, driven by the reversal of share-based payment expenses and increased gross profit from higher revenue [19] - The company's overseas market expansion is progressing steadily, with new powder production capacity expected to further boost performance in 2024 [19]