CAHIC(600195) 西南证券·2024-11-08 01:02Investment Rating - The report assigns a "Hold" rating to the company [1][10]. Core Views - The company experienced a slight revenue increase of 0.47% year-on-year, reaching 4.178 billion yuan in the first three quarters of 2024, but faced a significant decline in net profit, down 79.39% to 82 million yuan [1][2]. - In Q3 2024, revenue rose by 2.93% year-on-year to 1.699 billion yuan, while net profit fell by 85.16% to 19 million yuan, indicating challenges in profitability despite stable revenue growth [2][3]. - The company is increasing its R&D investment, which rose by 10.04% year-on-year to 93 million yuan, representing a R&D expense ratio of 2.23% [2][3]. - The company is focusing on expanding its product offerings in the pet health market, which is expected to be a new growth point [3]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 4.178 billion yuan, a year-on-year increase of 0.47%, and a net profit of 82 million yuan, a decrease of 79.39% [1]. - In Q3 2024, the company reported a revenue of 1.699 billion yuan, up 2.93% year-on-year, and a net profit of 19 million yuan, down 85.16% [2]. R&D and Growth Potential - The company is committed to R&D, with expenses increasing to 93 million yuan, which is expected to enhance product quality and competitiveness in the long term [2][3]. - The approval of a new cat vaccine and advancements in African swine fever vaccine development are notable achievements that may support future growth [2][3]. Market Outlook - The demand for animal health products is anticipated to grow due to increasing awareness of animal health among farming enterprises [3]. - The company is positioning itself in the pet market, which is expected to provide significant growth opportunities [3]. Earnings Forecast - The projected EPS for 2024, 2025, and 2026 is 0.14, 0.37, and 0.52 yuan, respectively, with corresponding dynamic PE ratios of 50, 19, and 13 [3][4].