Investment Rating - The report maintains a "Neutral" rating for the company with a target price of HKD 8.48 [3][5][12] Core Views - The company faced significant challenges in 2023, with revenue growth slowing to 4.8% year-on-year, totaling RMB 2.38 billion. Gross profit declined by 9.4% to RMB 980 million, and net profit dropped by 63.0% to RMB 400 million. Core business profit, excluding biological asset fair value losses, decreased by 7.3% to approximately RMB 690 million [2][3] - The company is expected to continue facing challenges in 2024, leading to a downward revision of revenue and profit forecasts for 2024-2025 by 10.4% and 16.7%, respectively. This is attributed to a significant reduction in new orders, which fell from RMB 3.8 billion in the previous year to RMB 2.3 billion [2][3][8] - The management indicated that while the market price of experimental monkeys is expected to stabilize in 2024, a substantial recovery in terminal demand is unlikely in the short term, impacting gross margins [3][4] Financial Summary - Total revenue for 2022 was RMB 2.27 billion, with a projected revenue of RMB 2.36 billion for 2023, and expected revenues of RMB 2.36 billion and RMB 2.57 billion for 2024 and 2025, respectively [4][10] - The net profit for 2022 was RMB 1.07 billion, with a significant decline to RMB 400 million in 2023. Projections for 2024 and 2025 are RMB 531 million and RMB 600 million, respectively [4][10] - The earnings per share (EPS) for 2023 is projected at RMB 0.53, with expectations of RMB 0.71 and RMB 0.80 for 2024 and 2025 [4][10] - The company’s price-to-earnings ratio (PER) is adjusted to 11.0 times for 2024, down from 12.0 times, reflecting the downward revision in profit forecasts [3][5]
终端需求回升仍需时间，2024年仍将面对挑战