CAHIC(600195) 民生证券·2024-10-30 12:30Investment Rating - The report maintains a "Recommended" rating for the company [6] Core Views - The company reported a revenue of 4.18 billion yuan for the first three quarters of 2024, a year-on-year increase of 0.5%, and a net profit attributable to shareholders of 80 million yuan, a year-on-year decrease of 79.4% [2] - The decline in net profit is primarily due to falling product prices and a lack of investment income compared to the previous year [2] - The third quarter of 2024 saw a revenue of 1.70 billion yuan, a year-on-year increase of 2.9% and a quarter-on-quarter increase of 25.5%, with a net profit of 20 million yuan, a year-on-year decrease of 85.2% but a quarter-on-quarter turnaround [2] Summary by Sections Upstream and Downstream Performance - The upstream raw material industry remains under pressure due to oversupply and weak downstream demand, leading to low prices for veterinary raw materials [3] - The average price of live pigs in Q3 2024 was 19.5 yuan/kg, a year-on-year increase of 19.5%, which has improved the performance of the downstream animal health sector [3] Cost Management and Profitability - The company has improved its cost management, with a sales expense ratio of 7.5% in Q3 2024, an increase of 0.2 percentage points quarter-on-quarter, while the management expense ratio decreased by 0.9 percentage points to 5.1% [3] - The sales gross margin in Q3 2024 was 16.3%, a quarter-on-quarter increase of 1.2 percentage points but a year-on-year decrease of 3.9 percentage points due to falling product prices [3] Research and Development - The company has increased its R&D investment, with an R&D expense ratio of 2.2% for the first three quarters of 2024, an increase of 0.2 percentage points year-on-year [4] - The company has made progress in its pet segment, receiving approval for a new vaccine for cats, which is expected to enhance its competitiveness in the pet market [4] Financial Forecast - The company is expected to achieve net profits of 311 million yuan, 415 million yuan, and 523 million yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.30, 0.41, and 0.51 yuan [4][5] - The projected PE ratios for the same years are 22, 17, and 13 times [4][5]