LIHUA(300761) 中国银河·2024-07-31 23:30Investment Rating - The report maintains a "Recommended" rating for the company [2][5]. Core Insights - The company reported a significant improvement in performance for H1 2024, with revenue of 7.805 billion yuan, a year-on-year increase of 12.16%, and a net profit attributable to shareholders of 575 million yuan, reversing from a loss of 592 million yuan in H1 2023 [2]. - The growth in revenue and profitability is attributed to stable sales growth in the pig and chicken segments, a decline in breeding costs due to lower raw material prices, and improved production efficiency [2]. - The company aims to expand its production capacity for yellow feathered chickens and pigs, with expectations for continued price increases in the market [5]. Summary by Sections Financial Performance - H1 2024 revenue reached 7.805 billion yuan, up 12.16% year-on-year; net profit was 575 million yuan, compared to a loss of 592 million yuan in H1 2023 [2]. - The gross profit margin for H1 2024 was 14.10%, an increase of 15.56 percentage points year-on-year [2]. - The company sold 2.35 million yellow feathered chickens in H1 2024, a year-on-year increase of 10.69%, with a sales price of 13.21 yuan/kg, up 0.23% [2]. Production and Capacity - The company plans to achieve an annual output of over 1.2 million pigs in 2024, with a focus on expanding production capacity in Jiangsu, Anhui, and Shandong provinces [2]. - The total number of cooperative farmers for the chicken business reached 6,909, a year-on-year increase of 4.07% [2]. Future Projections - The company forecasts net profits of approximately 1.083 billion yuan, 2.063 billion yuan, and 879 million yuan for 2024, 2025, and 2026, respectively, with corresponding EPS of 1.31 yuan, 2.49 yuan, and 1.06 yuan [5]. - The company aims to maintain a growth rate of 8-10% in annual output for its chicken business [2].