SDDSC(SZ:002041) KAIYUAN SECURITIES·2024-04-24 10:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1][3]. Core Views - The company achieved significant growth in 2023, with revenue reaching 1.552 billion yuan, a year-on-year increase of 17.06%, and a net profit attributable to shareholders of 256 million yuan, up 1.01% year-on-year. The fourth quarter of 2023 saw revenue of 898 million yuan, a 17.84% increase year-on-year, and a net profit of 160 million yuan, up 13.85% year-on-year. The growth is attributed to stable sales in the corn seed business and the expected growth from transgenic seeds [3][4]. - The company maintains its profit forecasts for 2024-2025 and introduces a new forecast for 2026, expecting net profits of 295 million yuan, 389 million yuan, and 499 million yuan for 2024, 2025, and 2026 respectively. The corresponding EPS for these years is projected to be 0.34 yuan, 0.44 yuan, and 0.57 yuan, with current stock prices corresponding to P/E ratios of 28.6, 21.7, and 16.9 times [3][4]. Summary by Sections Revenue and Profitability - In 2023, the company's corn seed revenue was 1.353 billion yuan, a year-on-year increase of 15.25%, with a gross margin of 29.17%, down 4.07 percentage points year-on-year. The demand for corn seeds remains strong due to stable corn prices and supportive government policies [4]. - Other seed revenues for wheat, rice, and vegetables were 111 million yuan, 45 million yuan, and 14 million yuan, showing year-on-year increases of 25.23%, 69.13%, and a decrease of 6.04% respectively [4]. Financial Forecasts - The company forecasts revenue growth to 1.8 billion yuan in 2024, 2.196 billion yuan in 2025, and 2.821 billion yuan in 2026, with year-on-year growth rates of 16.0%, 22.0%, and 28.5% respectively [33]. - The projected net profit for 2024 is 295 million yuan, increasing to 389 million yuan in 2025 and 499 million yuan in 2026, with corresponding year-on-year growth rates of 15.3%, 31.9%, and 28.3% [33]. Cost Management - The company has seen a continuous optimization in sales and management expense ratios, with 2023 rates at 4.57% for sales and 7.04% for management, reflecting a year-on-year decrease of 0.06 percentage points and 0.37 percentage points respectively. R&D expenses increased by 34.29% year-on-year to 67 million yuan [3][17].