LIHUA(SZ:300761) Guohai Securities·2024-08-01 11:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2][8] Core Views - The company's revenue for the first half of 2024 reached 7.805 billion yuan, a year-on-year increase of 12.16%, and it achieved a net profit of 575 million yuan, recovering from a loss of 592 million yuan in the same period last year [2][3] - The cost of the yellow chicken business has decreased rapidly, leading to continuous improvement in profitability. The company sold 235 million meat chickens in the first half of 2024, a year-on-year increase of 10.69%, with a continued expansion in market share [3] - The average cost of chicken was 6.1 yuan per kilogram in the first half of 2024, down 13.48% from the same period last year, and further decreased to 5.9 yuan in the second quarter [3] - The sales price of meat chickens was 13.21 yuan per kilogram in the first half of 2024, a slight increase of 0.23% year-on-year, indicating a favorable margin due to declining costs [3] - The domestic pig farming sector has also turned profitable, with the company selling 434,900 pigs in the first half of 2024, a year-on-year increase of 18.83% [3] - The average sales price of pigs was 15.92 yuan per kilogram, up 7.13% year-on-year, and the company aims to exceed 1.2 million pigs sold for the full year [3] Financial Projections - Revenue projections for 2024-2026 are adjusted to 17.581 billion yuan, 18.316 billion yuan, and 19.820 billion yuan respectively, with net profits of 1.501 billion yuan, 1.638 billion yuan, and 1.168 billion yuan [3][6] - The corresponding P/E ratios for 2024-2026 are estimated at 13, 12, and 17 times [3][6] - The company is expected to maintain a stable growth trajectory in its yellow chicken and pig farming businesses, with profitability expected to recover due to improving industry conditions [3][6]