克难求进，曙光在前

Investment Rating - The investment rating for the company is "Buy" and is maintained [4]. Core Views - The company reported a revenue of 11.48 billion yuan in 2023, a decrease of 27.4% year-on-year, and a net profit attributable to shareholders of 1.57 billion yuan, down 12.8% year-on-year. The fourth quarter alone saw a revenue of 2.20 billion yuan, a decline of 18.6% year-on-year, but a net profit increase of 31.0% year-on-year to 200 million yuan [5][6]. - The company is expected to benefit from new projects and collaborations, with significant sales to Syngenta A.G. projected to increase from 2.34 billion yuan in 2023 to 4.08 billion yuan in 2024 [5][6]. - The company is the largest player in the domestic bionic pesticide industry, with internal growth and asset collaboration driving long-term growth [6]. Financial Performance - In 2023, the company achieved a gross profit margin of 26% and a net profit margin of 13.6%. The gross profit was 2.94 billion yuan, with operating costs at 8.54 billion yuan [12]. - The company plans to distribute a cash dividend of 0.88 yuan per share, which represents 22.85% of the net profit attributable to shareholders for the year [5][6]. - Forecasted net profits for 2024, 2025, and 2026 are expected to be 1.41 billion yuan, 1.60 billion yuan, and 1.71 billion yuan, respectively [6][12]. Market Conditions - The pesticide raw material prices have been on a downward trend since 2022, with a significant price drop of 43.4% year-on-year for raw materials in Q4 2023. However, the price of formulations increased by 28.7% year-on-year [6]. - The company is experiencing a slight decline in profitability due to falling product prices, with Q4 2023 gross and net profit margins at 23.3% and 9.3%, respectively [6][12]. Project Development - The company has successfully completed the installation and commissioning of its new projects, with the fourth phase expected to reach full production by the end of November 2023 [5][6]. - The company is also advancing its northern base, completing 37 building tops before the winter freeze, which is anticipated to be a significant growth driver [5][6].