YISHENG(SZ:002458) Xin Lang Cai Jing·2025-05-01 02:42Core Viewpoint - The company reported a net profit of -0.13 million yuan for Q1 2025, which is in line with expectations, but shows significant declines in both revenue and profit compared to previous periods [1] Group 1: Financial Performance - Q1 2025 revenue was 623 million yuan, down 9.4% year-on-year and 36.6% quarter-on-quarter [1] - The company sold 150 million white feather broiler chicks in Q1 2025, with a price of 2.6 yuan per chick, reflecting a 44.8% decrease from the previous quarter and a 37.2% decrease year-on-year [2] - The gross profit margin for Q1 2025 decreased to 10.3%, down 22.5 percentage points quarter-on-quarter and 20.1 percentage points year-on-year [3] - The net profit margin for Q1 2025 was -2.1%, a decline of 22.8 percentage points quarter-on-quarter and 18.0 percentage points year-on-year [3] Group 2: Business Segments - The company’s main business of chick sales faced revenue decline due to low prices, but it is estimated to be at a break-even point under current conditions [2] - The company sold 14,100 breeding pigs in Q1 2025, with revenue of 30 million yuan, showing a significant year-on-year increase of 344.1% [2] - Other business segments, including probiotics, dairy products, and agricultural equipment, incurred a combined loss of approximately 8 million yuan in Q1 2025 [2] Group 3: Industry Trends - The poultry industry is expected to see a recovery in chick prices, with a potential tightening of supply in the second half of 2025 due to avian influenza impacts in New Zealand and the U.S. [4] - The company has increased its breeding stock imports and is expanding production capacity, which may lead to a recovery in chick sales [4] Group 4: Profit Forecast and Valuation - The current stock price corresponds to a P/E ratio of 20/15 for 2025/2026, with a downward revision of net profit forecasts by 24% and 12% for 2025 and 2026, respectively [5] - The target price has been adjusted down by 11% to 10 yuan, reflecting a potential upside of 21% based on revised P/E ratios [5]