WENS FOODSTUFF GROUP CO.(SZ:300498) China Post Securities·2024-07-19 07:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the near term [6][9]. Core Insights - The company is expected to achieve a significant turnaround in its financial performance, with a projected net profit of 12.5 to 15 billion yuan for the first half of 2024, compared to a loss of 46.89 billion yuan in the same period last year [4]. - The improvement in profitability is attributed to rising pig prices and a rapid decrease in costs, with the average selling price of live pigs reaching 18.1 yuan per kilogram in June, the highest since the beginning of 2023 [5]. - The company has successfully increased its pig output by 21.96% year-on-year, with a total of 14.37 million pigs sold in the first half of 2024 [5]. Financial Summary - The company's revenue is projected to grow from 89.92 billion yuan in 2023 to 103.24 billion yuan in 2024, reflecting a growth rate of 14.81% [7]. - The net profit attributable to the parent company is expected to recover from a loss of 6.39 billion yuan in 2023 to a profit of 9.89 billion yuan in 2024, marking a substantial increase of 254.78% [7]. - Earnings per share (EPS) are forecasted to improve from -0.96 yuan in 2023 to 1.49 yuan in 2024, indicating a strong recovery in profitability [7].