CAHIC(SH:600195) Huachuang Securities·2024-04-28 14:32Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 11.75 CNY, compared to the current price of 8.52 CNY [1][24]. Core Views - The company reported a revenue of 5.406 billion CNY for 2023, a decrease of 8.24% year-on-year, and a net profit attributable to shareholders of 403 million CNY, down 26.73% year-on-year. The fourth quarter alone saw a revenue of 1.247 billion CNY, a decline of 29.37% year-on-year, and a net profit of 609.41 thousand CNY, down 95.93% year-on-year [1][24]. - The decline in revenue is attributed to significant drops in the main business areas of vaccines and chemical pharmaceuticals, with vaccine revenue falling by 16.77% and chemical pharmaceutical revenue decreasing by 12.09% [1][24]. - Despite the challenges faced in 2023, the report anticipates a recovery in the industry and the company's performance in 2024, driven by improved market conditions and strategic adjustments within the company [1][24]. Financial Summary - 2023 Financial Performance: - Total revenue: 5.406 billion CNY, down 8.24% year-on-year - Net profit: 403 million CNY, down 26.73% year-on-year - Fourth quarter revenue: 1.247 billion CNY, down 29.37% year-on-year - Fourth quarter net profit: 609.41 thousand CNY, down 95.93% year-on-year [1][24]. - 2024-2026 Financial Projections: - Projected revenue for 2024: 6.144 billion CNY, with a growth rate of 13.6% - Projected net profit for 2024: 478 million CNY, with a growth rate of 18.7% - Projected revenue for 2025: 7.201 billion CNY, with a growth rate of 17.2% - Projected net profit for 2025: 596 million CNY, with a growth rate of 24.6% [1][24]. - Valuation Metrics: - 2024 PE ratio: 25 - 2025 PE ratio: 18 - 2026 PE ratio: 15 [1][24]. Business Segment Performance - Vaccine Revenue: 1.009 billion CNY in 2023, down 16.77% year-on-year - Chemical Pharmaceutical Revenue: 1.264 billion CNY in 2023, down 12.09% year-on-year - Feed Revenue: 1.026 billion CNY in 2023, down 6.91% year-on-year - Trade Revenue: 2.084 billion CNY in 2023, down 0.51% year-on-year [1][24]. Market Outlook - The report suggests that the industry is expected to recover, with the company poised to benefit from this recovery through strategic changes and new product launches, including vaccines for cats and cattle [1][24].