JINYU(SH:600201) Southwest Securities·2024-05-05 13:06Investment Rating - The report maintains a "Hold" rating for the company, with a target price not specified for the next six months [49]. Core Views - The company is expected to benefit from a recovery in the breeding industry, which may lead to an increase in both volume and price in the animal health sector [49]. - The report highlights that the company has achieved a revenue of 1.598 billion yuan in 2023, representing a year-on-year growth of 4.55%, and a net profit attributable to the parent company of 284 million yuan, up 34.64% year-on-year [37][38]. - The company has made significant investments in R&D, amounting to 230 million yuan, which is 14.39% of its operating revenue, and is expected to launch over 40 new vaccine products in the next five years [4]. Summary by Sections Financial Performance - In 2023, the company reported an operating income of 1.598 billion yuan, with a net profit of 284 million yuan, and a non-recurring net profit of 254 million yuan, showing growth rates of 4.55%, 34.64%, and 29.74% respectively [37][38]. - The first quarter of 2024 saw a revenue of 348 million yuan, a decrease of 4.42% year-on-year, with a net profit of 106 million yuan, down 1.05% [37]. R&D and Product Development - The company has focused on technological innovation, with a strong emphasis on R&D, which has led to the registration of two new veterinary drug certificates during the reporting period [4]. - The company plans to launch several vaccines in 2024-2025, ensuring sustainable growth in performance over the next two years [4]. Market Outlook - The report indicates that the breeding industry is expected to recover, with a forecasted increase in pig prices due to a decrease in breeding stock, which may positively impact the animal health sector [49]. - The company is projected to achieve net profits of 380 million yuan, 460 million yuan, and 580 million yuan for the years 2024-2026, with corresponding dynamic PE ratios of 27, 22, and 18 times [42].