Investment Rating - The report initiates coverage with a "Buy" rating for the company [2][30]. Core Insights - The company operates in a full industry chain model covering agriculture, animal husbandry, dairy, and sugar, establishing a circular economy through business synergy [2][14]. - The company has seen a significant increase in fresh milk production, leading to a revenue growth of 32.55% year-on-year, reaching 1.256 billion yuan in 2023 [2][18]. - The gross margin has remained stable, with cash flow improving; however, the overall gross margin saw a slight decline due to market price decreases compared to 2022 [2][19]. - The company is focused on high integration levels and aims to enhance market concentration in the dairy industry, which is expected to evolve towards a model that integrates primary, secondary, and tertiary industries [2][26]. - Future growth is anticipated as the company leverages capital markets to expand its sugar project and enhance its full industry chain, with projected revenues of 1.494 billion yuan, 1.725 billion yuan, and 1.895 billion yuan for 2024-2026, representing year-on-year growth rates of 18.92%, 15.49%, and 9.82% respectively [2][30]. Summary by Sections Company Overview - The company is a leading agricultural enterprise in Inner Mongolia, involved in grass planting, cattle farming, and dairy product production, with a focus on a full industry chain model [2][14][15]. Revenue Growth - The company has achieved stable revenue growth, with a compound annual growth rate of 21.11% from 2021 to 2023, driven by increased fresh milk sales corresponding to the growth in dairy cattle numbers [2][18]. Profitability Metrics - The sales gross margin for 2021-2023 was 20.46%, 21.37%, and 18.96%, while the net profit margin was 6.36%, 7.56%, and 8.07% respectively [2][19]. Market Position and Strategy - The company is enhancing its market position through high integration and aims to capitalize on the growing demand for dairy products in China, where per capita consumption remains low compared to developed countries [2][26]. Financial Projections - The company forecasts revenues and net profits to grow significantly over the next three years, with earnings per share projected to increase from 0.45 yuan in 2023 to 0.63 yuan in 2026 [2][30][31].
骑士乳业首次覆盖报告：深耕农牧业，营业收入稳定增长