LIHUA(SZ:300761) GF SECURITIES·2024-08-01 01:31Investment Rating - The investment rating for the company is "Buy" with a reasonable value of 30.32 CNY per share, corresponding to a PE ratio of 20 times for the year 2024 [4][10]. Core Views - The company has significantly reduced its breeding costs, leading to a substantial turnaround in performance for the second quarter. The half-year report for 2024 shows a revenue of 7.8 billion CNY, a year-on-year increase of 12%, and a net profit attributable to shareholders of 570 million CNY, a year-on-year increase of 197%. The second quarter alone generated a revenue of 4.1 billion CNY, with a net profit of approximately 500 million CNY, marking a year-on-year increase of 346% [2][3]. - The company experienced steady growth in yellow chicken output, with 235 million birds sold in the first half of 2024, an increase of 11% year-on-year. The average selling price was 6.6 CNY per jin, while the total cost dropped to 6.1 CNY per jin, resulting in an estimated profit of about 2 CNY per bird [2][3]. - The scale of pig farming has rapidly increased, with 435,000 pigs sold in the first half of 2024, a year-on-year increase of 19%. The second quarter saw approximately 242,000 pigs sold, an increase of 88% year-on-year. The breeding cost for pigs significantly decreased to 7.4 CNY per jin in the second quarter [2][3]. Financial Summary - The company's revenue is projected to grow from 15.35 billion CNY in 2023 to 17.13 billion CNY in 2024, reflecting a growth rate of 11.6% [3][8]. - The net profit is expected to recover from a loss of 437 million CNY in 2023 to a profit of 1.26 billion CNY in 2024, indicating a growth rate of 386.8% [3][8]. - The earnings per share (EPS) are forecasted to be 1.52 CNY in 2024, increasing to 2.07 CNY in 2025 and 2.78 CNY in 2026 [2][3].