Q1盈利正增长，利润质量提升

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a strong start in Q1 2024 with revenue of 533 million yuan, a year-on-year increase of 20.42%, and a net profit attributable to shareholders of 88 million yuan, up 8.35% year-on-year [1] - The introduction of the self-developed cat trivalent vaccine "Rui Miao Shu" contributed significantly to revenue, generating 12 million yuan in sales and breaking the monopoly of imported products in China [1] - The company is actively expanding its strategic partnerships with large breeding groups, leading to accelerated growth in the livestock sector [1] Summary by Sections Financial Performance - In Q1 2024, the company achieved operating income of 533 million yuan, a 20.42% increase year-on-year, and a net profit of 88 million yuan, an 8.35% increase year-on-year [1] - The revenue from the preparation and raw material drug business reached 1.084 billion yuan, up 11.20% year-on-year [1] - The poultry biological products business generated 928 million yuan in revenue, a 3.64% increase, while the livestock biological products business achieved 141 million yuan, an 8.47% increase [1] Research and Development - The company invested 233 million yuan in R&D in 2023, accounting for 10.35% of its operating income, focusing on developing cutting-edge pet products [1] - The self-developed dog quadrivalent vaccine has completed clinical trials and is undergoing new veterinary drug registration [1] - The company has obtained registration certificates for three new veterinary drugs, enhancing its product portfolio [1] Strategic Initiatives - The company is actively developing a vaccine for African swine fever and enhancing its competitiveness in the foot-and-mouth disease vaccine market [1] - A strategic acquisition of 100% equity in Baoding Shoujun for 230 million yuan is planned, which will provide the company with production qualifications for foot-and-mouth disease vaccines [1] Earnings Forecast - The company is expected to achieve EPS of 1.1, 1.35, and 1.61 yuan for 2024 to 2026, corresponding to dynamic PE ratios of 14, 11, and 10 times [1]