RINGPU(SZ:300119) Southwest Securities·2024-04-02 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 20.90 CNY over the next six months [1]. Core Insights - The company achieved a revenue of 2.25 billion CNY in 2023, representing a year-on-year growth of 7.9%, and a net profit attributable to shareholders of 450 million CNY, up 30.6% year-on-year [1]. - The main business segments showed steady growth, with the pet segment's layout progressing, including the launch of a cat trivalent vaccine and the completion of clinical trials for a dog quadrivalent vaccine [1][2]. - The company has increased its R&D investment to 233 million CNY, accounting for 10.35% of its revenue, focusing on developing cutting-edge pet products [2]. - The company is actively expanding its portfolio in the African swine fever vaccine market and enhancing its competitiveness in the foot-and-mouth disease vaccine market through strategic acquisitions [3]. Revenue and Profit Summary - In Q4 2023, the company reported a revenue of 660 million CNY, a year-on-year increase of 8.9%, and a net profit of 180 million CNY, up 57.7% year-on-year [1]. - The sales revenue from the formulation and raw materials business reached 1.08 billion CNY, growing by 11.20% year-on-year, while the poultry biological products segment generated 928 million CNY, up 3.64% [1][4]. Financial Forecast - The company is projected to achieve earnings per share (EPS) of 1.10 CNY, 1.35 CNY, and 1.61 CNY for the years 2024, 2025, and 2026, respectively, with corresponding dynamic price-to-earnings ratios of 13, 11, and 9 [3][4]. - Revenue is expected to grow significantly, with forecasts of 2.79 billion CNY in 2024, 3.40 billion CNY in 2025, and 4.06 billion CNY in 2026, reflecting growth rates of 24.75%, 22.48%, and 20.00% respectively [10]. Strategic Developments - The company signed a cooperation agreement for the development of a recombinant African swine fever vaccine and plans to acquire 100% of Baoding Shoujun for 230 million CNY, enhancing its production capacity for foot-and-mouth disease vaccines [3][4]. - The company has received several new veterinary drug registration certificates, including for a pet anesthetic, marking a significant step in breaking the monopoly of imported products in China [2].