CABIO(688089) 国泰君安·2024-08-28 06:14Investment Rating - The report maintains a "Buy" rating for the company with a target price of 20.16 RMB, unchanged from the previous rating [4] Core Views - The company's performance in the first half of 2024 met expectations, with significant growth in overseas revenue driven by international clients, new national standards, and domestic client capacity shifts [2] - Revenue and profitability improved, with 24H1 revenue, net profit, and non-GAAP net profit reaching 2.61 billion RMB, 0.68 billion RMB, and 0.53 billion RMB, up 31%, 95%, and 133% YoY respectively [9] - Gross margin and net margin for 24H1 were 42.09% and 25.43%, up 1.05 and 8.94 percentage points YoY, respectively [9] - ARA product revenue grew 59% YoY, while DHA revenue increased 11% YoY, with overseas revenue surging 80% YoY [9] Financial Performance - 24H1 revenue and net profit were 2.61 billion RMB and 0.68 billion RMB, up 31% and 95% YoY, respectively [9] - Q2 revenue and net profit were 1.44 billion RMB and 0.44 billion RMB, up 30% and 112% YoY, respectively [9] - Gross margin and net margin for Q2 were 43.39% and 29.66%, up 0.23 and 12.32 percentage points YoY, respectively [9] - The company's total market capitalization is 2,447 million RMB, with a current price of 14.54 RMB [4][5] Business Highlights - Overseas revenue growth was driven by the expiration of DSM's global patents in 2023H1, leading to increased demand from international clients such as Danone and Nestlé [9] - Domestic revenue grew 10% YoY, supported by capacity utilization improvements and new client acquisitions [9] - The company's HMO raw materials have been approved in China, with potential for future growth in both domestic and international markets [9] - The company is leveraging synthetic biology to develop high-value products, including HMOs, carotenoids, and personal care functional ingredients, positioning itself as a platform-based nutrition and care raw material provider [9] Financial Forecast - Revenue is expected to grow from 568 million RMB in 2024E to 802 million RMB in 2026E, with a CAGR of 18.8% [10] - Net profit is projected to increase from 141 million RMB in 2024E to 194 million RMB in 2026E, with a CAGR of 17.2% [10] - EPS is forecasted to rise from 0.84 RMB in 2024E to 1.16 RMB in 2026E [10] - ROE is expected to improve from 9.0% in 2024E to 10.8% in 2026E [10]