LIHUA(300761) 光大证券·2024-08-05 07:03Investment Rating - The report maintains a "Buy" rating for the company, with a target price adjusted to 25.62 CNY based on a 14x PE ratio for comparable companies [2][7]. Core Insights - The company's poultry and pig farming businesses have achieved significant profitability improvements in the first half of 2024, driven by reduced breeding costs and increased sales volumes [1][3]. - The report projects a decrease in the 2024 net profit forecast to 1.514 billion CNY, a 17.45% reduction from previous estimates, while the 2025 net profit forecast is slightly increased to 1.730 billion CNY, reflecting a 2.00% rise [2][3]. Summary by Sections Poultry Business - In H1 2024, the company sold 235 million yellow feathered chickens, a year-on-year increase of 10.69%, with an average selling price of 13.21 CNY/kg, up 0.23% year-on-year [1]. - Revenue from the chicken business reached 6.794 billion CNY, a 10.09% increase year-on-year, with a gross margin of 13.86%, up 13.54 percentage points [1]. - The cost of chicken farming significantly improved, with total costs dropping to 6.1 CNY per jin, down from 6.3 CNY in Q1 to 5.9 CNY in Q2 [1]. Pig Farming Business - The pig farming segment turned profitable in H1 2024, with sales of 434,900 pigs, an 18.83% increase year-on-year, and an average selling price of 15.92 CNY/kg, up 7.13% year-on-year [1]. - Revenue from pig farming reached 895 million CNY, an 18.50% increase year-on-year, with a gross margin of 15.55%, up 33.44 percentage points [1]. - The company has established a pig production capacity of approximately 1.8 million heads, with 80,000 breeding sows, setting a solid foundation for future growth [1]. Financial Performance - The company's total revenue for H1 2024 was 7.805 billion CNY, a 12.16% increase year-on-year, with a net profit of 575 million CNY, marking a turnaround from a loss of 592 million CNY in H1 2023 [3]. - The report provides a detailed financial forecast, projecting revenues of 17.616 billion CNY for 2024, with a growth rate of 14.73% [4].