CAHIC(SH:600195) Minsheng Securities·2024-04-10 16:00Investment Rating - The report maintains a "Recommended" rating for the company [2] Core Views - In 2023, the company reported a revenue of 5.41 billion yuan, a year-on-year decrease of 8.2%, and a net profit attributable to shareholders of 0.40 billion yuan, down 26.7% year-on-year [2] - The fourth quarter of 2023 saw a revenue of 1.25 billion yuan, a decline of 29.4% year-on-year and 24.4% quarter-on-quarter, with a net profit of 0.01 billion yuan, reflecting a significant drop of 95.9% year-on-year and 95.2% quarter-on-quarter [2] - The company is expected to see net profits of 5.42 billion, 6.29 billion, and 7.23 billion yuan from 2024 to 2026, with corresponding earnings per share (EPS) of 0.53, 0.62, and 0.71 yuan, leading to price-to-earnings (PE) ratios of 17, 14, and 13 respectively [3] Summary by Sections Revenue and Profitability - The company's revenue for 2023 was 5.41 billion yuan, with a growth rate of -8.2%. The net profit attributable to shareholders was 0.40 billion yuan, with a growth rate of -26.7% [2] - The earnings per share (EPS) for 2023 was 0.39 yuan, with a PE ratio of 23 [3] Business Segments - Veterinary Medicine: The segment faced continued market downturns, leading to a revenue of 12.6 billion yuan, down 12.1% year-on-year, with a gross margin of 21.5% [3] - Biological Products: Revenue was 10.1 billion yuan, down 16.8% year-on-year, with a gross margin of 46.1% [3] - Feed: Revenue was 10.3 billion yuan, down 15.7% year-on-year, but the gross margin improved to 23.6% due to declining raw material prices [3] Strategic Developments - The acquisition of a poultry industry chain by the company's shareholder, Zhongmu Group, is expected to benefit the company's poultry health business, enhancing its integrated service capabilities [3] - The report emphasizes the company's position as a leading player in the upstream of the breeding industry, with market reforms expected to enhance growth potential [3]