CCGB(SZ:300138) China Post Securities·2024-04-23 01:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong expectation for the stock to outperform the benchmark index by over 20% in the next six months [4][7]. Core Views - The company reported a revenue of 6.872 billion yuan for 2023, a year-on-year increase of 9.14%, and a net profit attributable to shareholders of 480 million yuan, up 10.53% year-on-year. However, the net profit after deducting non-recurring items decreased by 1.25% [4]. - The decline in profit growth is primarily attributed to the active adjustment of sales for feed-grade lutein and a decrease in profit margins for some products. The company is facing significant inventory pressure for feed-grade lutein [4]. - The main product, capsicum red pigment, continues to show stable growth, while the feed-grade lutein has been a drag on overall performance. The health product segment saw a remarkable growth of approximately 80% in sales revenue [4]. Financial Summary - The company’s projected financials for 2024-2026 include: - Revenue: 8.112 billion yuan in 2024, 9.308 billion yuan in 2025, and 10.748 billion yuan in 2026, with growth rates of 18.05%, 14.75%, and 15.47% respectively [5]. - Net profit attributable to shareholders is expected to be 549.85 million yuan in 2024, 668.31 million yuan in 2025, and 830.15 million yuan in 2026, with growth rates of 14.62%, 21.54%, and 24.22% respectively [5]. - Earnings per share (EPS) is projected to be 1.03 yuan in 2024, 1.25 yuan in 2025, and 1.56 yuan in 2026 [5]. - The current price-to-earnings (P/E) ratio is noted to be at a historical low of 9 times for 2024, indicating a high margin of safety for investors [4].