JINYU(SH:600201) Guotou Securities·2024-04-29 05:30Investment Rating - The report maintains an investment rating of "Buy-A" for the company [10]. Core Views - The company is focusing on improving production processes and controlling costs, leading to a recovery in gross profit margins, particularly in the vaccine business, which saw a 4 percentage point increase to 59.46% in 2023 [1]. - The company is diversifying its product offerings, with non-oral vaccines showing stable growth and new products in the pipeline, which is expected to reduce reliance on oral vaccines [9]. - The company is projected to achieve net profits of 3.7 billion, 4.5 billion, and 5.2 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 29.9%, 22.5%, and 15.9% [18]. Financial Performance - In 2023, the company achieved operating revenue of 1.598 billion yuan, a year-on-year increase of 4.55%, and a net profit of 283.6 million yuan, up 34.64% year-on-year [16]. - The company’s large client segment performed well, with direct sales revenue reaching 570 million yuan, a 40.58% increase year-on-year [1]. - The company’s gross profit margin improved due to cost control, with raw material costs for the vaccine business decreasing by 25.55% year-on-year to 206 million yuan [1]. Product Development - The company has successfully launched several non-oral vaccine products, including a 24.57% increase in sales of the pig circovirus vaccine and a 109.25% increase in sales of the dual vaccine for roundworm [9]. - The company has a robust pipeline with 14 products currently in the registration or emergency evaluation stages, including vaccines for African swine fever and foot-and-mouth disease [9]. Valuation - The report sets a 6-month target price of 11.51 yuan, based on a 35 times price-to-earnings ratio for 2024 [18]. - The company's stock price was 8.91 yuan as of April 26, 2024, with a 12-month price range of 7.21 to 11.31 yuan [10].