CAHIC(SH:600195) Guotou Securities·2024-04-17 14:30Investment Rating - The report assigns a "Buy-A" investment rating to the company, with a target price of 11.38 yuan over the next six months [7][8]. Core Insights - The company's animal health business is currently under pressure due to a decline in vaccine sales and chemical drug prices, but a recovery in pig prices is anticipated [2][3]. - Strategic partnerships with major clients are expected to enhance sales across the company's various segments, potentially leading to improved profitability in 2024 [3][6]. - The company has a comprehensive business structure covering pharmaceuticals, feed, and trade, with significant revenue contributions from each segment [41][44]. Financial Summary - In 2023, the company reported revenue of 5.406 billion yuan, a year-on-year decrease of 8.24%, and a net profit of 403 million yuan, down 26.73% from the previous year [5][31]. - Revenue projections for 2024-2026 are as follows: 6.085 billion yuan in 2024, 6.644 billion yuan in 2025, and 7.107 billion yuan in 2026, with corresponding net profits of 465 million yuan, 536 million yuan, and 601 million yuan [4][46]. - The company’s earnings per share (EPS) are expected to be 0.46 yuan in 2024, 0.52 yuan in 2025, and 0.59 yuan in 2026, reflecting growth rates of 15.4%, 15.3%, and 12.1% respectively [7][48]. Business Segments - The animal health segment is projected to recover with expected revenue growth of 29.8% in 2024, reaching 11.2 billion yuan, and maintaining a gross margin of 49% [45]. - The chemical drug segment is anticipated to generate 16.4 billion yuan in revenue by 2024, with a gross margin of 25.2% [45]. - The feed business is expected to achieve 10.9 billion yuan in revenue by 2024, with a stable gross margin of around 23.6% [45]. Market Position - The company is positioned as a leading player in the animal health industry, backed by strong relationships with group clients and a comprehensive product offering [3][48]. - The anticipated recovery in pig prices is expected to positively impact the pricing of animal health products, providing ample growth opportunities in 2024 [7][48].