Long Ping High-Tech(SZ:000998) Guoxin Securities·2024-05-20 01:31Investment Rating - The investment rating for Longping High-Tech (000998.SZ) is "Buy" [5][11]. Core Views - The company's revenue for 2023 reached 9.223 billion yuan, a year-on-year increase of 22.45%, with domestic business growth being significant, surpassing 5 billion yuan in revenue. The net profit attributable to shareholders was 200 million yuan, up 124.02% year-on-year, mainly due to cost reduction and efficiency improvements in the main business, dollar loan replacement, and disposal of low-efficiency assets [1][7]. - In Q1 2024, the company reported a revenue of 2.072 billion yuan, a year-on-year increase of 16.56%, driven by the gradual release of new varieties. However, the net profit attributable to shareholders was 77 million yuan, down 48.95% year-on-year, primarily due to low local grain prices in Brazil, increased promotional efforts, and rising management expenses due to business expansion and personnel increases [1][7]. - The company has a strong market position in the corn seed business, achieving a revenue of 6.030 billion yuan in 2023, with a year-on-year growth of 16.87%. The domestic revenue was 2.268 billion yuan, up 72.30%, increasing its market share from 7% to nearly 10%, making it the leader in the domestic market [1][7]. Summary by Sections Financial Performance - In 2023, the company achieved a total revenue of 9.223 billion yuan, with a net profit of 200 million yuan. The revenue for Q1 2024 was 2.072 billion yuan, with a net profit of 77 million yuan [1][7]. - The corn seed business generated 6.030 billion yuan in revenue in 2023, while the rice seed business generated 1.777 billion yuan, with respective year-on-year growth rates of 16.87% and 36.50% [1][7]. Business Segments - The corn seed business had a gross margin of 40.02%, while the rice seed business had a gross margin of 36.37%. The company has accumulated 10 genetically modified corn varieties approved, indicating a strong first-mover advantage in the commercialization of genetically modified corn [1][7][11]. Profitability Forecast - The forecast for net profit attributable to shareholders for 2024-2026 is adjusted to 510 million yuan, 630 million yuan, and 730 million yuan, respectively, with corresponding earnings per share of 0.39 yuan, 0.48 yuan, and 0.55 yuan [2][11].