Investment Rating - The report maintains a "Strong Buy" rating for the company [5][3]. Core Views - The company experienced a revenue decline of 11.48% year-on-year in 2024, with total revenue reaching 942 million yuan, while the net profit attributable to shareholders was 382 million yuan, down 3.43% year-on-year. However, in Q1 2025, the company showed a significant recovery with a revenue increase of 19.65% year-on-year, amounting to 245 million yuan, and a net profit of 108 million yuan, up 24.08% year-on-year [1][2]. - The decline in 2024 was primarily due to price pressures from intense industry competition, leading to a 12.75% drop in revenue from the main business of veterinary biological products, despite a 1.19% increase in sales volume compared to 2023. The gross margin for the main business fell by 7.72 percentage points to 65.07% [1][2]. - The company has been optimizing its cost management, with total expense ratios decreasing by 1.68 percentage points to 21.25% in 2024, mainly driven by a reduction in sales expenses [1]. Financial Performance Summary - The company forecasts net profits of 450 million yuan, 549 million yuan, and 639 million yuan for 2025, 2026, and 2027, respectively, with corresponding EPS of 0.97 yuan, 1.18 yuan, and 1.37 yuan. The PE ratios are projected to be 17, 14, and 12 times for the same years [3][4]. - The revenue for 2025 is expected to rebound to 1.11 billion yuan, reflecting a growth rate of 17.75%, followed by further growth in subsequent years [4]. - The company has received five new veterinary drug registration certificates in 2024, including a significant vaccine for pigs, and is actively developing multiple vaccine products for pets and ruminants [2]. Industry Outlook - The recovery in downstream breeding profitability is anticipated to drive demand for animal health products, contributing to the company's revenue growth in 2025 and beyond [2]. - Continuous investment in R&D and technological upgrades is expected to enhance product safety, effectiveness, and production efficiency, supporting revenue growth [2].

Core Insights - The company reported a significant decline in revenue and cash flow, indicating potential challenges in the competitive landscape of the veterinary biological products industry [1][2][11] Financial Performance - Revenue for 2024 was 941,923,862.86 yuan, a decrease of 11.48% from 2023's 1,064,074,588.89 yuan, primarily due to intensified market competition [2] - The net profit attributable to shareholders was 382,350,180.06 yuan, down 3.43% from 395,934,947.68 yuan in the previous year, reflecting resilience despite revenue decline [3] - The net profit after excluding non-recurring items was 311,886,194.33 yuan, a decrease of 15.82%, indicating challenges in core business profitability [4] - Basic earnings per share fell to 0.82 yuan, down 3.53% from 0.85 yuan, while the diluted earnings per share after excluding non-recurring items dropped 15.19% to 0.67 yuan [5] Expense Analysis - Sales expenses decreased by 26.34% to 114,045,783.13 yuan, suggesting a possible adjustment in marketing strategy [6] - Management expenses slightly decreased by 8.06% to 61,639,233.33 yuan, indicating a need for improved operational efficiency [7] - Financial expenses improved, showing a negative value of -61,582,335.08 yuan, indicating effective fund management [8] Research and Development - R&D expenses were stable at 86,121,440.39 yuan, accounting for 9.14% of revenue, reflecting the company's commitment to innovation despite revenue decline [10] - The number of R&D personnel increased from 278 to 315, enhancing the company's research capabilities [15] Cash Flow Analysis - Operating cash flow decreased significantly by 27.02% to 392,681,812.32 yuan, which may impact daily operations [11] - Investment cash flow turned positive at 96,587,260.83 yuan, a significant improvement from -328,996,171.09 yuan the previous year, indicating a strategic shift in investment [12] - Financing cash flow saw a substantial decline to -503,176,992.20 yuan, reflecting increased outflows possibly due to debt repayment and dividend distribution [13] Overall Assessment - The company faces challenges in revenue and cash flow but maintains a positive outlook on R&D and product innovation, necessitating a focus on enhancing core competitiveness and adapting to market dynamics [1][14]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 23.25 RMB [6][4]. Core Insights - The company reported a revenue of 942 million RMB in 2024, a year-on-year decrease of 11.48%, and a net profit of 382 million RMB, down 3.43% year-on-year. However, Q4 2024 showed a revenue increase of 16.81% year-on-year and a net profit increase of 216.18% year-on-year, indicating a recovery trend [1][2]. - The company is focusing on new product development, having obtained 7 new veterinary drug registration certificates in 2024, including 5 for swine vaccines. This is expected to drive future revenue growth [3][4]. - The company’s earnings are projected to improve, with net profits expected to reach 4.35 billion RMB in 2025, 4.96 billion RMB in 2026, and 5.75 billion RMB in 2027, corresponding to EPS of 0.93, 1.06, and 1.23 RMB respectively [4][5]. Summary by Sections Financial Performance - In Q1 2025, the company achieved a revenue of 245 million RMB, up 19.65% year-on-year, and a net profit of 108 million RMB, up 24.08% year-on-year. The overall trend shows a recovery in performance despite seasonal factors affecting Q1 results [1][2]. Product Development - The company has made significant progress in new product development, with multiple vaccines for swine and other animals in various stages of research and approval. This is expected to enhance the company's competitive position in the veterinary biological products industry [3][4]. Earnings Forecast - The earnings forecast for the company indicates a gradual recovery, with expected revenue growth of 19.86% in 2025 and continued growth in subsequent years. The projected net profit growth rates are 13.86% for 2025 and 15.85% for 2027 [5][4].

Core Insights - Yongshun Bio achieved operating revenue of 269 million yuan and net profit of 40 million yuan in 2024, maintaining a steady operational trend [1] - The company has successfully expanded its overseas revenue, surpassing 20 million yuan for the first time [1] - In Q1 2025, Yongshun Bio reported operating revenue of 65.46 million yuan and net profit attributable to shareholders of 7.92 million yuan, continuing its stable performance [1] Product and Market Position - Yongshun Bio is a leading domestic veterinary biological product company, focusing on swine and poultry vaccines with over 30 product varieties [2] - The company holds a strong market position in core products, with significant market shares in swine vaccines, particularly the classical swine fever live vaccine and the three-in-one vaccine for swine [2] - Key products such as the pseudorabies live vaccine and the porcine circovirus type 2 inactivated vaccine saw substantial sales growth, with revenues of 14.91 million yuan (up 35.47%) and 8.12 million yuan (up 71.71%) respectively in 2024 [2] Financial and Operational Efficiency - Yongshun Bio has optimized its financial structure, reducing total liabilities by 16.35% compared to the beginning of the year, enhancing its balance sheet [2] - The company invested 23 million yuan in R&D in 2024, accounting for 8.54% of its operating revenue, and obtained new drug registration certificates and patents, enriching its product line [3] - The production system has undergone technological innovation and management upgrades, with successful GMP dynamic acceptance of its bacterial inactivated vaccine production line [3] International Expansion - Yongshun Bio has successfully registered new products in Egypt, adding to its international presence alongside Vietnam, with a total of 7 and 2 products registered in these countries respectively [4] - The company’s overseas revenue reached over 20 million yuan in 2024, marking a year-on-year growth of 34.31%, indicating an increasing contribution from international markets [4]