Wellhope(SH:603609) GF SECURITIES·2024-06-25 12:01Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 7.94 CNY per share based on a 12x PE ratio for 2024 [2][3][6]. Core Insights - The company plans to repurchase shares worth between 150 million and 300 million CNY, reflecting confidence in its future development and aiming to enhance shareholder value [2][3]. - The feed sales are expected to grow steadily, benefiting from improved profitability in the downstream breeding sector, with a projected sales volume of 471, 516, and 556 million tons from 2024 to 2026 [6][19]. - The company is optimizing its pig farming structure and management, leading to a continuous decrease in breeding costs, with expected sales volumes of 1 million, 1.1 million, and 1.3 million pigs from 2024 to 2026 [6][19]. Financial Projections - The company forecasts revenues of 35.97 billion CNY in 2023, with a slight increase to 36.17 billion CNY in 2024, and further growth to 39.05 billion CNY in 2025 and 42.02 billion CNY in 2026 [20]. - The projected net profit for 2024 is 621 million CNY, increasing to 902 million CNY in 2025 and 1.115 billion CNY in 2026, with corresponding EPS of 0.66, 0.94, and 1.16 CNY per share [20][25]. - The feed segment is expected to maintain a gross margin of 8.4%, 8.8%, and 8.9% from 2024 to 2026, while the pig farming segment is projected to achieve a gross margin of 6%, 8.28%, and 11.48% over the same period [6][20].