YISHENG(SZ:002458) Guoxin Securities·2024-08-05 07:30Investment Rating - The report maintains an "Outperform the Market" rating for the company [4][15]. Core Views - The company experienced a significant decline in sales volume and prices, leading to a year-on-year decrease in net profit attributable to shareholders by 67.61% in Q2 2024 [1][5]. - The white feather broiler chick business faced challenges with a 15.55% drop in sales volume and a 21.50% decrease in average selling price, resulting in a 31.61% decline in overall revenue from this segment [1][5]. - The pig business began to contribute positively to profits in Q2 2024, with a 632% increase in sales volume of breeding pigs, leading to a 299% increase in revenue [1][5]. Summary by Sections Financial Performance - In H1 2024, the company achieved operating revenue of 1.376 billion yuan, a decrease of 25.77% year-on-year, with Q2 revenue at 688 million yuan, down 26.76% [1][5]. - The net profit attributable to shareholders for H1 2024 was 183 million yuan, down 67.61% year-on-year, with Q2 net profit at 74 million yuan, a decline of 70.68% [1][5]. Chick Business - The white feather broiler chick sales volume decreased to 277 million chicks, a 15.55% drop, while the average selling price fell by 21.50%, leading to a 31.61% decline in revenue from this segment to 1.205 billion yuan [1][5]. - The gross margin for the chicken business decreased by 13.98 percentage points to 30.01%, with gross profit down 53.35% to 362 million yuan [1][5]. Pig Business - The company’s breeding pig sales reached 8,452 heads, a 632% increase, contributing to a revenue of 89.34 million yuan, up 299% year-on-year [1][5]. - The pig business achieved profitability in Q2 2024, with a gross margin of 5.47%, despite a year-on-year decrease of 4.38 percentage points [1][5]. Market Outlook - The report indicates a tightening supply of white feather broiler chicks due to reduced imports, which is expected to impact production negatively in the second half of the year [2]. - The demand for chicken and pork is anticipated to improve as the pig cycle enters an upward trend, potentially benefiting the company [2]. Earnings Forecast - The forecast for net profit attributable to shareholders is set at 403 million yuan for 2024, 903 million yuan for 2025, and 809 million yuan for 2026, with corresponding earnings per share of 0.36 yuan, 0.82 yuan, and 0.73 yuan [2][3].