CAHIC(SH:600195) Guohai Securities·2024-04-11 16:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company faced significant operational pressure in 2023 due to prolonged losses in the domestic pig farming industry, resulting in a revenue decline of 8.24% year-on-year to 5.406 billion yuan and a net profit drop of 26.73% to 403 million yuan [9][10] - New product launches are expected to alleviate operational pressures and drive revenue growth, with the company obtaining production licenses for several vaccines in 2023 [9][10] - The company is actively progressing with the emergency evaluation of the African swine fever vaccine, which is anticipated to enhance its product offerings [9] Financial Summary - Revenue and Profit Forecasts: - 2024E Revenue: 6.005 billion yuan (up 11.07%) - 2025E Revenue: 6.720 billion yuan (up 11.90%) - 2026E Revenue: 7.546 billion yuan (up 12.30%) - 2024E Net Profit: 486 million yuan (up 20.62%) - 2025E Net Profit: 626 million yuan (up 29%) - 2026E Net Profit: 726 million yuan (up 16%) [10][18] - Key Financial Ratios: - ROE: Expected to increase from 7% in 2023 to 11% by 2026 - P/E ratio projected to decrease from 30.05 in 2023 to 12.16 in 2026 [10][18] - Revenue Breakdown by Segment in 2023: - Biological products: 1.009 billion yuan (down 16.77%) - Chemical drugs: 1.264 billion yuan (down 12.09%) - Feed business: 1.026 billion yuan (down 6.91%) - Trade business: 2.084 billion yuan (down 0.51%) [9]