YISHENG(SZ:002458) Guohai Securities·2024-08-02 06:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's performance is under short-term pressure, but the industry is expected to recover in the second half of the year [1] - The company's revenue for the first half of 2024 was 1.376 billion yuan, a year-on-year decrease of 25.77%, and the net profit attributable to the parent company was 183 million yuan, down 67.61% year-on-year [4][5] - The decline in performance is primarily due to the sluggish sales of broiler chicks, which were affected by low prices of broiler meat and live chickens [5] - The company is gradually releasing breeding pig capacity, aiming for a dual-driven strategy of both pigs and chickens [5] - The company has raised 1.16 billion yuan through a private placement to support breeding projects, which is expected to significantly increase pig production in 2024 [5] Financial Summary - The company’s revenue projections for 2024-2026 are adjusted to 3.296 billion, 3.379 billion, and 3.763 billion yuan, respectively, with net profits of 892 million, 804 million, and 1.076 billion yuan [3][5] - The company is expected to benefit first from the rising prices of chicks, with corresponding P/E ratios of 11, 12, and 9 times for the respective years [3] - The current stock price is 9.02 yuan, with a market capitalization of approximately 9.98 billion yuan [3]