HAID GROUP(SZ:002311)2024-07-30 00:00Investment Rating - The report maintains a "Recommended" rating for the company, Hai Da Group (stock code: 002311.SZ) [1]. Core Insights - The company reported a revenue of 52.296 billion yuan for H1 2024, a slight decrease of 0.84% year-on-year. However, the net profit attributable to shareholders increased significantly by 93.15% to 2.125 billion yuan [1]. - The growth in performance is attributed to the increase in market share and profitability in the feed business, as well as the turnaround in the breeding business [1]. - The company achieved a comprehensive gross margin of 11.15% in H1 2024, an increase of 2.28 percentage points year-on-year [1]. Summary by Sections Revenue Breakdown - In H1 2024, the revenue contributions from various segments were as follows: feed sales at 41.341 billion yuan (down 3.19%), agricultural product sales at 8.423 billion yuan (up 11.96%), trading business at 1.927 billion yuan (up 8.32%), and animal health products at 466 million yuan (down 23.35%) [1]. Feed Business Performance - The company sold 11.79 million tons of feed in H1 2024, an increase of 8.5% year-on-year, with external sales reaching 10.81 million tons, also up by 8% [1]. - The gross margin for the feed business improved to 9.76%, an increase of 0.92 percentage points year-on-year [1]. Breeding Business Performance - The breeding business generated 8.423 billion yuan in revenue, a year-on-year increase of 11.96%, with a gross margin of 16.89%, up 9.9 percentage points [1]. - The company reported a pig output of approximately 2.7 million heads, a year-on-year increase of 22.7%, contributing to the profitability turnaround in the breeding sector [1]. Future Outlook - The company is expected to maintain steady growth in its feed business, with rising pig prices benefiting the breeding business's profit performance. EPS is projected to be 2.38 yuan and 3.34 yuan for 2024 and 2025, respectively, corresponding to PE ratios of 18 and 13 times [1][4].