Huatong Meat(SZ:002840) Zheng Quan Zhi Xing·2025-08-27 22:56Core Viewpoint - Huadong Co., Ltd. (002840) reported a revenue of 4.244 billion yuan for the first half of 2025, reflecting a year-on-year increase of 1.89%, while the net profit attributable to shareholders reached 76.1731 million yuan, a significant rise of 163.98% [1] Financial Performance - The total revenue for Q2 2025 was 2.165 billion yuan, showing a slight decline of 0.19% year-on-year, while the net profit for the same quarter was 41.9689 million yuan, up by 9.75% [1] - The gross profit margin improved to 7.27%, an increase of 110.7% year-on-year, and the net profit margin reached 1.91%, up by 163.5% [1] - The total of selling, administrative, and financial expenses was 227 million yuan, accounting for 5.35% of revenue, a decrease of 17.78% year-on-year [1] - Earnings per share (EPS) increased to 0.11 yuan, a rise of 155.0% year-on-year, while operating cash flow per share reached 0.55 yuan, up by 259.67% [1] Balance Sheet Highlights - Cash and cash equivalents rose to 1.495 billion yuan, marking a 128.0% increase year-on-year [1] - Accounts receivable increased significantly by 104.8% year-on-year, totaling 967.387 million yuan [1] - Interest-bearing liabilities decreased to 4.149 billion yuan, down by 18.38% [1] Business Model and Performance Evaluation - The company's return on invested capital (ROIC) was 3.88% last year, indicating weak capital returns, with a historical median ROIC of 8.34% since its listing [3] - The business model relies heavily on capital expenditure and marketing, necessitating careful evaluation of capital projects and potential funding pressures [3] Cash Flow and Debt Analysis - The cash flow situation is concerning, with cash and cash equivalents to current liabilities ratio at 52.64%, and the average operating cash flow to current liabilities ratio at 13.2% over the past three years [4] - The interest-bearing debt ratio stands at 38.2%, with a current ratio of only 0.9, indicating potential liquidity issues [4] Market Expectations - Analysts project a net profit of 228 million yuan for 2025, with an average EPS forecast of 0.28 yuan [5] Fund Holdings - Notable funds holding Huadong Co., Ltd. include Huaxia Panyi One-Year Open Mixed Fund, which has recently increased its position [6]