NEW HOPE(SZ:000876) EBSCN·2024-08-06 12:31Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook based on operational stability and improving market conditions [3]. Core Views - The company has revised its 2023 private placement plan, aiming to raise no more than 3.8 billion yuan, primarily for biosecurity and digital upgrades in pig farming, as well as debt repayment [2]. - The company has seen significant improvement in its financial position, with a reduction in fundraising needs due to nearly 5.2 billion yuan in revenue from strategic divestitures in 2023 [2]. - The company reported a pig output of 8.6886 million heads in H1 2024, with sales revenue of 13.048 billion yuan, reflecting a 3.4% year-on-year decrease [2]. - The company has successfully reduced its breeding costs, with the cost per kilogram dropping to 14.5 yuan, and is expected to further decrease to below 14.2 yuan by the end of 2024 [2]. Summary by Sections Financial Performance - The company achieved a net profit of 1.495 billion yuan in 2024E, a significant recovery from a loss of 1.461 billion yuan in 2022 [4]. - Revenue is projected to decline by 15.26% in 2024E, with a forecasted revenue of 12.008 billion yuan [4]. - The company's earnings per share (EPS) is expected to be 0.33 yuan in 2024E, increasing to 0.72 yuan in 2025E and 0.68 yuan in 2026E [4]. Cost Management - The company has implemented strategic adjustments and management improvements, leading to a notable reduction in costs and enhanced efficiency in pig farming [2]. - The introduction of smart farming equipment has further mitigated disease risks and improved productivity [2]. Market Outlook - The report anticipates a continued recovery in pig prices, which is expected to support the company's performance throughout 2024 [2]. - The overall industry outlook remains positive, with expectations of improved profitability driven by favorable market conditions [2].