Sunner(SZ:002299) Huaan Securities·2024-07-08 09:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a turnaround in Q2, reporting a net profit of 80 million yuan to 120 million yuan, compared to a loss of 61.92 million yuan in Q1 [1] - The company has made a breakthrough in exporting self-developed breeding chickens, marking its entry into the international market with exports to Tanzania [1] - The company’s poultry slaughter volume increased by over 20% year-on-year in the first half of 2024, with chicken sales volume reaching 529,300 tons, a year-on-year increase of 17.4% [1] - The company is focusing on cost reduction and efficiency improvement, with significant enhancements in breeding efficiency and a notable decrease in comprehensive breeding costs [1] Financial Performance Summary - The company forecasts revenue of 18.595 billion yuan for 2024, with a slight year-on-year increase of 0.6% [2] - The net profit attributable to the parent company is projected to be 842 million yuan in 2024, reflecting a year-on-year growth of 26.7% [2] - The gross profit margin is expected to improve from 10.6% in 2023 to 12.7% in 2024 [2] - Earnings per share (EPS) is anticipated to rise from 0.54 yuan in 2023 to 0.68 yuan in 2024 [2] Financial Ratios and Projections - The company’s return on equity (ROE) is projected to increase from 6.4% in 2023 to 7.6% in 2024 [4] - The price-to-earnings (P/E) ratio is expected to decrease from 32.00 in 2023 to 23.23 in 2024, indicating a more attractive valuation [4] - The company’s total assets are projected to grow from 22.513 billion yuan in 2023 to 25.806 billion yuan in 2026 [3]