Keqian Biology(SH:688526) Huachuang Securities·2024-04-07 16:00Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 25.5 CNY [9][10]. Core Insights - The company has shown stable performance in its core business of pig vaccines, achieving a revenue of 974 million CNY in 2023, a year-on-year increase of 3.9%. Other segments, such as poultry vaccines and pet vaccines, have demonstrated significant growth, with revenues increasing by 44.2% and 74.3% respectively [9]. - The company is expected to benefit from a potential recovery in the pig farming cycle, which could enhance demand for its animal health products in the latter half of 2024 [9]. - The report highlights the company's ongoing investment in research and development, with over 270 million CNY spent in the past three years, and the introduction of new products expected to drive revenue growth [9]. Financial Performance Summary - Total revenue for 2023 was 1,064 million CNY, with a year-on-year growth rate of 6.3%. The net profit attributable to the parent company was 396 million CNY, reflecting a decline of 3.3% year-on-year [9]. - The earnings per share (EPS) for 2023 was 0.85 CNY, with projected EPS of 1.02 CNY for 2024, indicating a growth trajectory [9]. - The company’s price-to-earnings (P/E) ratio is projected to decrease from 23 in 2023 to 20 in 2024, and further to 15 in 2025, suggesting an improving valuation as earnings grow [9]. Revenue and Profit Forecast - The forecast for total revenue is expected to reach 1,257 million CNY in 2024, 1,533 million CNY in 2025, and 1,783 million CNY in 2026, with respective growth rates of 18.1%, 22.0%, and 16.3% [9]. - The net profit attributable to the parent company is projected to increase to 474 million CNY in 2024, 600 million CNY in 2025, and 706 million CNY in 2026, with growth rates of 19.8%, 26.5%, and 17.8% respectively [9].