YISHENG(SZ:002458)2024-08-02 11:31Investment Rating - The report maintains a "Recommended" rating for the company [2]. Core Views - The company's H1 2024 revenue was 1.376 billion yuan, a year-on-year decrease of 25.77%, with a net profit attributable to shareholders of 183 million yuan, down 67.61% year-on-year [2]. - The decline in performance is primarily attributed to a reduction in the sales volume of white feather broiler chicks and the low prices of chicken and live chickens [2]. - The company expects a recovery in profitability in Q3 due to seasonal demand, which may lead to an increase in chicken prices and boost the demand for broiler chicks [2]. Financial Performance Summary - H1 2024 revenue from chicken-related products was 1.205 billion yuan, a decrease of 31.61% year-on-year, accounting for 87.58% of total revenue, with a gross margin of 30.01%, down 13.98 percentage points [2]. - The company sold approximately 277 million broiler chicks in H1 2024, a decrease of 15.6% year-on-year, with an estimated average selling price of 3.78 yuan per chick, down 21.5% [2]. - The company's pig business showed improvement, with H1 2024 revenue of 8.9 million yuan, a year-on-year increase of 299.37%, and the gross margin was 5.47% [2]. Future Outlook - The company aims to sell approximately 600 million broiler chicks in 2024 and 1,000 million parent stock chicks, with a long-term goal of 700 million broiler chicks and 300 million "Yisheng 909" chicks by the end of the 14th Five-Year Plan [2]. - The report projects net profits for 2024, 2025, and 2026 to be 690 million yuan, 712 million yuan, and 667 million yuan respectively, with corresponding EPS of 0.62 yuan, 0.64 yuan, and 0.60 yuan [2][7].