LIHUA(300761) 申万宏源·2024-08-06 01:31Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market [3][4]. Core Insights - The company has turned its performance around in the first half of 2024, achieving a net profit of 575 million yuan, compared to a loss of 592 million yuan in the same period of 2023. Revenue for H1 2024 reached 7.81 billion yuan, marking a year-on-year increase of 12.2% [3][4]. - The chicken business has shown steady growth with a sales volume of 235 million birds in H1 2024, up 10.7% year-on-year. The average selling price for chicken was 13.21 yuan/kg, reflecting a slight increase of 0.2% [3][4]. - The pig business has also rebounded, with sales of 435,000 pigs in H1 2024, an increase of 18.8% year-on-year. The average selling price for pigs was 15.9 yuan/kg, up 7.1% [4]. Summary by Sections Financial Performance - In H1 2024, the company reported a revenue of 7.81 billion yuan, with a net profit of 575 million yuan, a significant recovery from the previous year's loss [5]. - The company expects to achieve revenues of 18.22 billion yuan in 2024, with a year-on-year growth rate of 18.7% [5]. Chicken Business - The company sold 235 million chickens in H1 2024, achieving a profit of approximately 510 million yuan from chicken farming, with an average profit per bird of 2.17 yuan [3][4]. - The total cost of chicken farming decreased to 12.2 yuan/kg in H1 2024, down 13.5% year-on-year [3]. Pig Business - The company sold 435,000 pigs in H1 2024, with a significant recovery in profitability in Q2 2024 as costs normalized [4]. - The total cost of pig farming fell to 14.8 yuan/kg in Q2 2024, reflecting the easing of pandemic impacts and lower feed prices [4].