RINGPU(SZ:300119) HUAXI Securities·2024-05-14 08:47Investment Rating - The report assigns a rating of "Accumulate" for the company, with a target price based on expected performance relative to the market index [16]. Core Insights - The company is positioned in the synthetic biology sector, which is currently experiencing favorable policy support and is expected to grow significantly due to advancements in technology and applications across various fields [17]. - The company's main business remains stable, with a strong product matrix, and it is actively investing in synthetic biology to create a second growth curve [18]. - The financial projections indicate a steady increase in revenue and net profit over the next few years, with expected revenues of 26.07 billion, 30.61 billion, and 36.49 billion for 2024, 2025, and 2026 respectively [22]. Financial Summary - The company achieved a revenue of 22.49 billion in 2023, reflecting a year-on-year growth of 7.90%, and a net profit of 4.53 billion, which is a 30.64% increase compared to the previous year [18]. - For the first quarter of 2024, the company reported a revenue of 5.33 billion, up 20.42% year-on-year, and a net profit of 0.88 billion, an increase of 8.35% [18]. - The earnings per share (EPS) are projected to be 1.08, 1.30, and 1.55 for the years 2024, 2025, and 2026 respectively, indicating a positive growth trajectory [22]. Business Development - The company has established a joint venture with the Tianjin Institute of Industrial Biotechnology to focus on synthetic biology innovations, particularly in the development of veterinary vaccines and feed additives [18]. - The strategic collaboration aims to leverage advancements in microbial protein production, which is expected to address the challenges of protein sourcing in animal feed and reduce costs [18][21]. - The company is also expanding its production capacity with the establishment of new manufacturing bases, which are expected to contribute to revenue growth in the coming years [21].