Core Viewpoint - The company's 1H25 performance met expectations, with revenue growth driven by stable pig farming production and cost improvements, alongside significant reduction in fresh food business losses [1][2]. Group 1: Financial Performance - 1H25 revenue increased by 19.8% year-on-year to 8.963 billion yuan, with net profit before and after fair value adjustments of biological assets at 198 million and 317 million yuan, respectively [1]. - Fresh pork revenue rose by 21% to 2.54 billion yuan, with brand revenue share increasing by 4.5 percentage points to 31.2% [2]. - Feed business revenue decreased by 3.7% to 3.127 billion yuan, while sales volume increased by 1.6% to 958,000 tons [2]. Group 2: Operational Developments - Pig farming showed high-quality growth with a revenue increase of 68.7% to 4.494 billion yuan, driven by an 83% increase in slaughter volume to 2.899 million heads [1][2]. - The company is expanding its "company + farmer" model, contributing to growth in slaughter volume [1]. - The company aims to support a slaughter volume of 5-6 million heads in 2025 through enhanced operational efficiency and a focus on a light-asset farming model [3]. Group 3: Cost Management and Financial Health - Continuous improvement in farming costs is noted, with estimated total costs for Q2 2025 at 13.0-13.5 yuan per kilogram [2][3]. - The company's balance sheet remains robust, with a debt-to-asset ratio of 53.2% at the end of 1H25, reflecting a slight increase due to the acquisition of COFCO Jia Hua [3]. Group 4: Future Outlook and Valuation - The company maintains net profit forecasts of 760 million and 1.15 billion yuan for 2025 and 2026, respectively [3]. - The current stock price corresponds to 10 and 7 times P/E for 2025 and 2026, with a target price raised by 39% to 2.5 HKD, indicating a potential upside of 33% [3].
中粮家佳康(01610.HK):生猪养殖重回高质量成长 品牌驱动生鲜业务突破