RINGPU(SZ:300119) Guoxin Securities·2024-06-12 07:02Investment Rating - The report assigns an "Outperform" rating to the company [7]. Core Insights - The company, Ruipubio, is a leading player in the livestock health sector, actively expanding into the pet health market. It has established itself as one of the largest and most comprehensive animal health enterprises in China since its inception in 1998 [7][24]. - In 2023, the company's revenue reached 2.249 billion yuan, with a CAGR of 11% over the past decade. The pet health segment is entering a growth phase, with several self-developed products, including a cat trivalent vaccine, expected to contribute to revenue growth [7][34]. - The company is well-positioned to benefit from the recovery of the livestock breeding industry, with expectations of improved demand for veterinary products as cash flow and profitability in the breeding sector recover [7][34]. Summary by Sections Company Overview - Ruipubio focuses on the research, production, and sales of veterinary biological products and pharmaceuticals, providing comprehensive solutions for animal disease prevention and control [7][24]. Financial Performance - In 2023, the company reported a revenue of 2.249 billion yuan, a year-on-year increase of 7.9%. The net profit attributable to shareholders was 453 million yuan, reflecting a 30.6% increase year-on-year [8][34]. - The company’s revenue and net profit have shown a CAGR of 11.53% and 11.54% respectively from 2013 to 2023 [34][37]. Business Segments - The revenue breakdown for 2023 shows that raw materials and formulations accounted for 48%, poultry biological products for 41%, and livestock biological products for 6% of total revenue [56]. - The pet health segment generated revenue of 26.52 million yuan in 2023, with expectations for growth as new products are launched [56]. Market Position - Ruipubio is recognized as one of the largest animal health companies in China, with a comprehensive product portfolio and a strong focus on R&D, leading to a competitive edge in the market [7][24][28]. Profitability and Valuation - The company’s gross margin for 2023 was 49.69%, with a net margin of 22.72%, indicating a stable profitability profile despite market challenges [40][34]. - The estimated reasonable valuation range for the company's stock is between 17.8 and 19.1 yuan, suggesting a potential upside of 20%-30% from the current stock price [7].