SDDSC(SZ:002041) Tai Ping Yang·2024-04-24 03:00Investment Rating - The report assigns a "Buy" rating to the company, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [2][14]. Core Insights - The company's revenue for 2023 reached 1.552 billion yuan, representing a year-on-year growth of 17.06%. The net profit attributable to shareholders was 256 million yuan, with a growth of 1.01% year-on-year. In Q4 alone, revenue was 898 million yuan, up 17.84%, and net profit was 160 million yuan, up 13.85% [1]. - The corn seed business generated 1.353 billion yuan in revenue, accounting for 87.23% of total revenue, with a growth of 15.25% year-on-year. The significant growth was attributed to increased downstream demand and competitive product strength [1]. - The company has a strong product matrix with multiple new corn varieties approved in 2023, enhancing its competitive advantage in the seed industry [1]. Financial Summary - For 2023, the company reported a gross margin of 29.39%, a decrease of 2.5 percentage points from the previous year, primarily due to rising seed production costs driven by higher corn prices [1]. - The projected net profits for 2024, 2025, and 2026 are 278 million yuan, 395 million yuan, and 492 million yuan, respectively, with corresponding growth rates of -3.90%, 42.74%, and 24.79% [4]. - The estimated price-to-earnings (PE) ratios for the next three years are 29.96, 21.03, and 16.90, indicating a decreasing trend [4].