CABIO(SH:688089) Guotai Junan Securities·2024-05-05 02:02Investment Rating - The investment rating for the company is "Buy" with a target price of 20.40, down from the previous target of 26.70 [9][10]. Core Views - The company has exceeded expectations in Q1, with improved gross margins driven by significant recovery in overseas customer revenues [9]. - The company is expected to face challenges in 2023 due to lower-than-expected overseas income and intensified domestic market competition, leading to a cautious adjustment in profit forecasts [9][10]. - The company’s revenue is projected to grow from 444 million in 2023 to 536 million in 2024, reflecting a growth rate of 21% [10]. Financial Summary - The company reported a net profit of 64 million in 2022, with a significant drop to 42 million in 2023, but is expected to recover to 91 million in 2024 [10]. - The gross margin for Q1 2023 was 40.49%, showing a year-on-year increase of 2.13 percentage points [9]. - The company’s operating profit margin is expected to improve from 17.2% in 2023 to 23.6% in 2024 [10]. Earnings Forecast - The earnings per share (EPS) is projected to be 0.68 in 2024, up from 0.54 in 2023 [10]. - The company’s net asset return rate is expected to increase from 6.2% in 2023 to 7.3% in 2024 [10]. Market Performance - The stock has a 52-week price range of 10.53 to 31.78, with a current market capitalization of 2,959 million [2][9]. - The stock's performance is expected to be significantly better than the Shanghai and Shenzhen 300 Index, with a projected increase of over 15% [8].