RINGPU(SZ:300119) Huachuang Securities·2024-04-05 16:00Investment Rating - The report maintains a "Strong Buy" rating for the company [5][20]. Core Views - The company achieved a revenue of 2.249 billion, a year-on-year increase of 7.9%, and a net profit attributable to shareholders of 453 million, up 30.64% year-on-year [5]. - The livestock business showed strong performance, driving overall growth despite a challenging market environment [5]. - The company is focusing on the top 100 domestic livestock farming groups, providing comprehensive health solutions, and has established strategic partnerships with leading clients [5]. - The gross margin improved to 49.69%, an increase of 1.25 percentage points year-on-year, with a net profit margin of 22.72%, up 4.79 percentage points year-on-year [5]. - The company plans to acquire 100% of Baoding Shoujun, indirectly holding 55.2% of a foot-and-mouth disease vaccine company, which is expected to enhance its vaccine segment [5]. Financial Summary - Revenue projections for 2024-2026 are 3.028 billion, 3.462 billion, and 3.887 billion, respectively, with year-on-year growth rates of 34.6%, 14.3%, and 12.3% [21]. - Net profit attributable to shareholders is forecasted to be 528 million, 624 million, and 696 million for 2024-2026, with growth rates of 16.6%, 18.1%, and 11.6% [21]. - Earnings per share (EPS) are expected to be 1.13, 1.34, and 1.49 for 2024-2026 [21]. - The current stock price corresponds to a 14 times price-to-earnings (PE) ratio for 2024, which is considered low compared to the target PE range of 18-20 times [5][21].