科前生物：营收环比改善，养殖回温业绩有望增长

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 18.72 CNY over the next six months [1][13]. Core Insights - The company's revenue showed a quarter-on-quarter improvement, with expectations for growth in the breeding sector. The report highlights that the demand for animal health products is influenced by the cyclical nature of the breeding industry, particularly the changes in livestock inventory [2][4]. - The company has increased its R&D investment, which is crucial for enhancing its core competitiveness. The R&D expenditure reached 20.79 million CNY in Q3 2024, accounting for 7.85% of revenue, indicating a focus on innovation [3][4]. - The report anticipates a recovery in pig supply and prices in Q4 2024, which is expected to boost the demand for animal health products, particularly vaccines [2][4]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported revenue of 666 million CNY, a year-on-year decrease of 19.57%. The net profit attributable to the parent company was 261 million CNY, down 27.09% year-on-year. In Q3 2024, revenue was 265 million CNY, a year-on-year decline of 10.35% but a quarter-on-quarter increase of 35.2% [1][2]. Market Dynamics - The report notes a decrease in the number of breeding pigs, which has led to reduced demand for vaccines and other animal health products. However, it also points out that the demand for vaccines is expected to rise as the breeding industry recovers [2][4]. R&D and Innovation - The company has made significant strides in R&D, obtaining 49 new veterinary drug registration certificates. The focus on developing new vaccine platforms is expected to enhance its product offerings and market position [3][4]. Earnings Forecast - The earnings per share (EPS) estimates for 2024, 2025, and 2026 are projected to be 0.83 CNY, 1.04 CNY, and 1.28 CNY, respectively. The report suggests a dynamic price-to-earnings (PE) ratio of 18, 15, and 12 for these years [4][10].