Investment Rating - The investment rating for the company is "Buy" with a target price indicating a potential return of over 20% within the next six months [5][12]. Core Insights - The company reported a total revenue of 9.785 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 14.86%. However, the net profit attributable to shareholders decreased by 52.67% to 342 million yuan [1][2]. - The third quarter saw a significant revenue increase of 18.07% year-on-year, reaching 4.103 billion yuan, with a remarkable sequential growth of 37.30% [1][2]. - The decline in net profit is attributed to foreign exchange losses and increased sales expenses, with total expenses rising by approximately 63.5 million yuan compared to the previous year [3]. Revenue Breakdown - For the first three quarters, the revenue from herbicides, insecticides, and fungicides was 7.191 billion yuan, 1.547 billion yuan, and 944 million yuan, respectively, with herbicides showing a year-on-year increase of 9.41% [2]. - The company's revenue growth is primarily driven by the herbicide segment and the rapid advancement of the C model, which increased its share from 33% to 38% year-on-year [2]. Financial Performance - The gross margin for the first three quarters was 20.4%, a decrease of 2.3 percentage points from the previous year, mainly due to intense competition in the TO B business and high inventory costs in South America affecting the TO C business [2]. - The company expects a solid growth foundation for 2025 as high inventory levels in South America are gradually resolved, and it continues to enhance its TO C business, particularly in North America and the European Union [3]. Profit Forecast and Valuation - The forecasted net profit attributable to shareholders for 2024, 2025, and 2026 is 530 million yuan, 806 million yuan, and 1.038 billion yuan, respectively, reflecting a significant decline from previous years [3][4]. - The company’s earnings per share (EPS) for 2024 is projected to be 1.91 yuan, with a price-to-earnings (P/E) ratio of 24.50 [4][8].
润丰股份：营收规模良好增长，业绩受累于汇兑损失