JINYU(SH:600201) Southwest Securities·2024-05-06 01:00Investment Rating - The report maintains a "Hold" rating for the company [1][3]. Core Views - The company achieved a revenue of 1.598 billion yuan in 2023, representing a year-on-year increase of 4.55%, while the net profit attributable to shareholders was 284 million yuan, up 34.64% year-on-year [1][17]. - The first quarter of 2024 saw a revenue of 348 million yuan, a decline of 4.42% year-on-year, with a net profit of 106 million yuan, down 1.05% year-on-year [1][17]. - The report highlights a potential recovery in the breeding industry, which may lead to an increase in both volume and price in the animal health sector [2][17]. - The company has focused on deepening cooperation with key clients and improving product structure, resulting in a sustained increase in gross margin and cash flow [17][18]. Financial Summary - The company forecasts earnings per share (EPS) for 2024, 2025, and 2026 to be 0.34 yuan, 0.41 yuan, and 0.52 yuan, respectively, with corresponding dynamic price-to-earnings (PE) ratios of 27, 22, and 18 [3][24]. - Revenue projections for 2024, 2025, and 2026 are 1.841 billion yuan, 2.207 billion yuan, and 2.637 billion yuan, with growth rates of 15.16%, 19.89%, and 19.50% respectively [4][25]. - The net profit attributable to shareholders is expected to be 382 million yuan, 457 million yuan, and 581 million yuan for the years 2024, 2025, and 2026, with growth rates of 34.83%, 19.63%, and 26.98% respectively [4][25]. Industry Outlook - The breeding industry has faced challenges, with a significant decline in pig inventory, which is expected to lead to a price increase in the future [2][36]. - The company is investing heavily in research and development, with 230 million yuan allocated in 2023, accounting for 14.39% of its revenue, and plans to launch over 40 new products in the next five years [18][19].