NOPOSION(SZ:002215) Haitong Securities·2024-05-06 07:33Investment Rating - The investment rating for the company is "Outperform the Market" [26][29]. Core Views - The company has shown a significant recovery in its net profit, with a year-on-year growth of 93.76% in Q1 2024, driven by a strong performance in its fresh produce segment and a recovery in pesticide demand [13][28]. - The company’s revenue for 2023 was 41.20 billion, a decrease of 3.41% year-on-year, while the net profit was 2.36 billion, down 28.26% year-on-year [28]. - The forecast for net profit from 2024 to 2026 is 5.64 billion, 6.47 billion, and 7.49 billion respectively, with corresponding EPS of 0.56, 0.64, and 0.74 [29]. Summary by Sections Market Performance - The company's stock has shown a relative decline compared to the market index, with a performance of -3.7% over 1 month and 12.5% over 2 months [27]. Financial Performance - In 2023, the company reported total revenue of 41.20 billion, a decrease of 3.41% year-on-year, and a net profit of 2.36 billion, down 28.26% year-on-year [28]. - The gross profit margin for the pesticide segment was 35.57%, an increase of 3.37 percentage points year-on-year, while the gross profit margin for fungicides was 40.92%, up 1.1 percentage points year-on-year [13]. Business Segments - The fresh produce segment has seen rapid growth, with a production increase of 53.36% year-on-year and revenue growth of 271.06% in 2023 [17]. - The pesticide segment is expected to recover, with demand gradually increasing and gross margins projected to rise due to the influence of raw material prices [13]. Earnings Forecast - The company is expected to achieve a revenue of 45.07 billion in 2024, with a projected net profit of 5.64 billion, reflecting a significant recovery from previous years [29]. - The estimated gross profit margin for 2024 is 29.8%, consistent with the previous year [23].