SMAC(600073) 长城证券·2024-07-04 02:31Investment Rating - The report assigns an "Overweight" rating to the company for the first time [3] Core Views - The company is focused on a high-quality protein and meat integration strategy, covering the entire pork industry chain from breeding to slaughtering and deep processing [19] - The company's pork breeding business is steadily progressing, with a 100.5% YoY revenue growth in Q1 2024 [4] - The company's beef and lamb business is expected to recover, with a 5.3% YoY revenue growth in Q1 2024 [6] - The company's leisure food business is a leader in the milk candy and honey sub-industries, with a 2.7% YoY revenue growth in Q1 2024 [7] Financial Performance - Revenue for 2024E is projected at 23,063 million yuan, a 3.1% YoY increase [3] - Net profit attributable to the parent company for 2024E is projected at 307 million yuan, a 36.1% YoY increase [3] - ROE for 2024E is projected at 6.2%, up from -2.0% in 2023A [3] - EPS for 2024E is projected at 0.33 yuan, up from 0.24 yuan in 2023A [3] Business Segments Pork Breeding - The company's pork breeding business achieved a revenue of 500 million yuan in Q1 2024, a 100.5% YoY increase [4] - The company plans to stabilize and expand its breeding bases in Shanghai and Yancheng [4] Pork Slaughtering and Processing - The company's pork products and canned food achieved revenues of 890 million yuan and 290 million yuan respectively in Q1 2024, with YoY declines of 10.4% and 53.9% [5] - The company aims to integrate resources to create a core track for the meat industry [9] Beef and Lamb - The company's beef and lamb business achieved a revenue of 3.17 billion yuan in Q1 2024, a 5.3% YoY increase [6] - The company plans to optimize production capacity and market diversification [6] Leisure Food - The company's leisure food business achieved a revenue of 520 million yuan in Q1 2024, a 2.7% YoY increase [7] - The company continues to develop products that meet the health and convenience needs of young consumers [7] Future Outlook - The company is expected to achieve net profits attributable to the parent company of 3.1 billion yuan, 3.6 billion yuan, and 4.0 billion yuan in 2024E, 2025E, and 2026E respectively [19] - The current stock price corresponds to P/E ratios of 17x, 14x, and 13x for 2024E, 2025E, and 2026E respectively [19]