LIHUA(SZ:300761) Xin Lang Cai Jing·2025-08-20 10:39Core Viewpoint - The company reported its H1 2025 results, showing a mixed performance with revenue growth but significant decline in net profit, primarily due to falling prices in poultry business [1][2]. Group 1: Financial Performance - In H1 2025, the company achieved revenue of 835.3 million yuan and a net profit attributable to shareholders of 14.9 million yuan, representing a year-on-year change of +7.02% and -74.10% respectively [1]. - For Q2 2025, the company reported revenue of 426.7 million yuan and a net profit of -5.7 million yuan, with year-on-year changes of +2.98% and -111.58% respectively [1]. - The basic EPS for H1 2025 was 0.18 yuan [1]. Group 2: Business Segments - The poultry business saw a steady increase in output, with chicken sales reaching 260 million birds, up 10.37% year-on-year, but revenue from chicken business fell to 635 million yuan, down 6.76% due to a decline in selling prices [1]. - The average selling price of commodity chickens dropped by 18.40% year-on-year, leading to a gross margin of 6.21%, down 7.65 percentage points [1]. - The goose business sold 1.1627 million geese, an increase of 21.06% year-on-year, but faced a price drop of 23.03%, resulting in a temporary loss [1]. Group 3: Cost and Profitability - The pig business performed well, with revenue of 1.947 billion yuan, up 117.65%, and sales of 949,600 pigs, up 118.35% year-on-year, attributed to high capacity utilization and increased stocking [2]. - The complete cost of pork decreased to 12.8 yuan per kilogram, with expectations for further decline [2]. - The overall gross margin for H1 2025 was 9.95%, down 4.15 percentage points, while the expense ratio slightly improved to 7.51%, down 0.02 percentage points [2]. Group 4: Investment Outlook - Based on H1 2025 operational performance, the profit forecast has been revised downwards, with expected net profits for 2025-2027 at 586 million, 1.474 billion, and 1.942 billion yuan respectively, reflecting a year-on-year change of -61.5%, +151.5%, and +31.8% [2]. - The company maintains a solid industry position and competitive strength, with a "buy" rating upheld [2].