NEW HOPE(SZ:000876) HTSC·2024-08-04 03:03Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of RMB 10.55 [2][5][8] Core Insights - The company is progressing with a private placement plan, reducing the fundraising amount from RMB 73.5 billion to RMB 38 billion, which is expected to improve the balance sheet and lower the debt ratio [2][3] - The company has seen continuous improvement in pig farming costs and a favorable feed business, leading to an upward revision of the 2024 profit forecast to RMB 1.14 billion [2][5] - The report highlights the company's focus on high-quality development in its pig farming and feed sectors, with production costs expected to decrease further [4][5] Summary by Sections Financial Performance - The company reported a revenue of RMB 141.5 billion in 2022, with a slight increase to RMB 141.7 billion in 2023, but a projected decline to RMB 120.1 billion in 2024 [6] - The net profit attributable to the parent company is expected to rise significantly from RMB 249.2 million in 2023 to RMB 1.14 billion in 2024, reflecting a growth rate of 356.27% [6][11] - The earnings per share (EPS) is projected to increase from RMB 0.05 in 2023 to RMB 0.25 in 2024 [6][11] Valuation Metrics - The report assigns a price-to-book (PB) ratio of 1.85 for 2024, compared to the average of 1.22 for comparable companies [5][6] - The target price of RMB 10.55 corresponds to a PB ratio of 1.85 for 2024, indicating a favorable valuation based on expected improvements in financial performance [5][8] Strategic Initiatives - The company plans to utilize the proceeds from the private placement primarily for upgrading biosecurity measures in pig farms and repaying bank debts [3][4] - The strategic focus on pig farming and feed production aims to enhance operational efficiency and profitability, with expectations of annual profit contributions from the feed business of RMB 700-1,000 million over the next two years [4][5]