Starry(SH:603520) Huachuang Securities·2024-05-17 04:02Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 14.9 CNY [31]. Core Insights - The company's revenue for 2023 was 2.196 billion CNY, a 3.04% increase year-on-year, with a net profit of 44 million CNY, marking a significant turnaround from losses [1]. - In Q1 2024, the company reported revenue of 642 million CNY, up 13.50% year-on-year, and a net profit of 12 million CNY, reflecting a 28.37% increase [1]. - The company's main revenue source, contrast agents, generated 1.817 billion CNY in 2023, a 3.64% increase, supported by stable customer orders and a robust sales network [31]. - The CDMO (Contract Development and Manufacturing Organization) segment showed remarkable growth, with revenues of 9.7 million CNY in 2023, up 87.54%, and production volume increasing by 161.15% [31]. - The domestic formulation business achieved sales of 490 million CNY in 2023, a 42.44% increase, aided by successful participation in national procurement [31]. - The report anticipates that the decline in iodine prices will enhance profit margins, with the average import price dropping to 64.55 USD/kg by March 2024 [31]. Financial Summary - For 2024-2026, the projected net profits are 170 million CNY, 401 million CNY, and 617 million CNY, representing year-on-year growth rates of 283.9%, 136.3%, and 53.8% respectively [31]. - The current stock price corresponds to a PE ratio of 25 for 2024, 10 for 2025, and 7 for 2026 [31]. - The company’s total revenue is expected to grow from 2.508 billion CNY in 2024 to 3.980 billion CNY in 2026, with growth rates of 14.2%, 26.6%, and 25.4% respectively [15][31].