CCGB(SZ:300138) Huaxin Securities·2024-04-09 16:00Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The company's cottonseed business is under pressure in Q1 2024, but the potential for plant extraction continues to be developed [2] - The company expects a net profit attributable to shareholders of 33-42 million yuan in Q1 2024, a decrease of 75.56% year-on-year, and a non-net profit of 43-52 million yuan, down 63.09% year-on-year [2] - The cottonseed business is affected by price declines due to fluctuations in major commodity prices like soybean oil and meal, impacting overall performance [2] - The plant extraction business shows solid competitive advantages, with stable growth in main products like chili red, chili essence, and lutein, and ongoing expansion in planting operations in regions like Xinjiang, India, and Zambia [2] - The company aims to achieve a global market share target of 50% for lutein in the medium to long term, while the stevia sugar product remains a significant growth opportunity [2] Financial Forecasts - The company forecasts revenue growth from 6,872 million yuan in 2023 to 7,784 million yuan in 2024, representing a growth rate of 13.3% [4] - Net profit is projected to increase from 486 million yuan in 2023 to 579 million yuan in 2024, with a growth rate of 19.3% [4] - The diluted earnings per share (EPS) are expected to rise from 0.91 yuan in 2023 to 1.09 yuan in 2024 [4] - Return on equity (ROE) is anticipated to improve from 13.7% in 2023 to 14.7% in 2024 [4]