CCGB(SZ:300138) Southwest Securities·2024-04-24 11:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 11.2 yuan, based on a 2024 PE multiple of 16x [2] Core Views - The company is a leader in the plant extract industry, with its main products showing steady growth and secondary products rapidly expanding, forming a second growth curve [2] - The company's plant extract business achieved revenue of 2.89 billion yuan in 2023, a year-on-year increase of 8.9% [9] - The cottonseed business faced pressure due to market competition and price fluctuations, with revenue of 3.55 billion yuan in 2023, up 5.1% year-on-year, but gross margin declined by 1.0pp to 3.7% [10] - The healthcare and traditional Chinese medicine businesses showed strong growth, with healthcare product revenue exceeding 150 million yuan, up 80% year-on-year [10] Financial Performance - In 2023, the company achieved total revenue of 6.87 billion yuan, a year-on-year increase of 9.1%, and net profit attributable to shareholders of 480 million yuan, up 10.5% year-on-year [8] - The gross margin in 2023 was 11.6%, down 2.3pp year-on-year, mainly due to the increased proportion of low-margin cottonseed business [11] - The net profit margin in 2023 was 7.0%, up 0.1pp year-on-year, while the net profit margin in Q4 2023 was 4.8%, down 1.7pp year-on-year [11] Business Segments - The natural pigment/spice/nutritional and medicinal products segment achieved revenue of 2.89 billion yuan in 2023, with a gross margin of 19.9% [3] - The cottonseed products segment achieved revenue of 3.55 billion yuan in 2023, with a gross margin of 3.7% [3] - The other products segment (including healthcare OEM) achieved revenue of 4.33 billion yuan in 2023, with a gross margin of 21.3% [3] Future Projections - The report forecasts revenue growth for other products (healthcare OEM, etc.) of 65%, 50%, and 40% for 2024-2026, with gross margins of 15%, 10%, and 10% respectively [1] - The natural pigment/spice/nutritional and medicinal products segment is expected to grow at 20%, 15%, and 12% for 2024-2026, with gross margins of 20%, 21%, and 22% [20] - The cottonseed products segment is expected to grow at -10%, 1%, and 3% for 2024-2026, with gross margins of -2%, 1%, and 2% [20] Valuation and Profit Forecast - The report forecasts net profit attributable to shareholders of 374 million yuan, 569 million yuan, and 744 million yuan for 2024-2026, with EPS of 0.70 yuan, 1.07 yuan, and 1.40 yuan respectively [15] - The ROE is expected to be 9.75%, 13.10%, and 14.94% for 2024-2026 [16]