JINYU(SH:600201)2024-04-26 14:30Investment Rating - The report maintains a "Recommended" rating for the company [1]. Core Views - The company reported a revenue of 1.598 billion yuan in 2023, representing a year-on-year increase of 4.55%. The net profit attributable to shareholders was 283.63 million yuan, up 34.64% year-on-year. The net profit after deducting non-recurring gains and losses was 254 million yuan, an increase of 29.74% year-on-year. The operating cash flow was 415 million yuan, reflecting a year-on-year growth of 20.36% [1]. - In Q4 2023, the company experienced a revenue decline of 9.76% year-on-year, with a net profit of -0.05 million yuan, indicating a loss compared to a profit of 0.01 million yuan in the same period of 2022. In Q1 2024, revenue was 348 million yuan, down 4.42% year-on-year, while net profit was 106 million yuan, a slight decrease of 1.05% year-on-year [1]. - The company achieved revenue and profit growth in 2023 despite a challenging environment in the aquaculture sector and intensified competition in the animal health industry, primarily due to product structure optimization and significant improvements in quality and efficiency. The overall gross margin for 2023 was 59.19%, an increase of 4.02 percentage points year-on-year, while the expense ratio was 36.42%, up 3.09 percentage points year-on-year. In Q1 2024, the overall gross margin improved to 60.80%, with an expense ratio of 26.35%, an increase of 2.36 percentage points year-on-year [1]. - The report highlights significant improvements in gross margins for government procurement and strong growth in key products such as pig vaccines. In 2023, government procurement revenue reached 286 million yuan, a slight year-on-year increase of 1.61%, driven by robust sales of ruminant vaccines. The gross margin for government procurement was 54.45%, up 9.63 percentage points year-on-year [1]. - The company continues to invest in research and development, with R&D expenditures of 230 million yuan in 2023, representing 14.39% of total revenue, which is leading in the industry. The company has received new veterinary drug registration certificates for two products and is advancing its pipeline with over 40 new vaccines planned for the next five years [1]. - The investment suggestion indicates that the company is deepening its "product + solution + service" integrated epidemic prevention system, aiming to consolidate its market share in foot-and-mouth disease vaccines while continuously increasing sales of non-foot-and-mouth disease vaccines. The company is expected to achieve steady growth in performance, with projected EPS of 0.33 yuan and 0.39 yuan for 2024 and 2025, respectively, corresponding to PE ratios of 27 and 23 [1][2]. Financial Summary - The company's projected revenues for 2024, 2025, and 2026 are 1.851 billion yuan, 2.195 billion yuan, and 2.444 billion yuan, respectively, with growth rates of 15.80%, 18.60%, and 11.36% [2]. - The net profit attributable to shareholders is expected to reach 365.24 million yuan in 2024, 441.87 million yuan in 2025, and 510.18 million yuan in 2026, with growth rates of 28.77%, 20.98%, and 15.46% [2]. - The projected EPS for the next three years is 0.33 yuan in 2024, 0.39 yuan in 2025, and 0.46 yuan in 2026, with corresponding PE ratios decreasing from 27 in 2024 to 20 in 2026 [2].