Wellhope(SH:603609) Orient Securities·2024-08-11 00:33Investment Rating - The report maintains a "Buy" rating for the company with a target price of 9.30 CNY per share [4][6]. Core Insights - The company expects a net loss attributable to shareholders of 33 million to 48 million CNY for the first half of 2024, with a net loss excluding non-recurring items estimated at 31.3 million to 46.3 million CNY [1]. - The feed and poultry business is under pressure, while the pig farming segment has turned profitable due to rising pig prices and lower breeding costs [1]. - The company plans to repurchase shares worth 150 million to 300 million CNY to bolster shareholder confidence, with 19.56 million shares repurchased as of July 16, accounting for 2.13% of total share capital [1]. - Brazil's export ban on poultry may lead to an increase in chicken prices, potentially benefiting the company's poultry business [1]. Financial Summary - The company's revenue for 2024 is projected to be 37.522 billion CNY, with a growth rate of 4.3% compared to the previous year [3]. - The net profit attributable to shareholders is expected to be 599 million CNY in 2024, reflecting a 231% increase from the previous year [3]. - The gross margin is projected to improve to 7.2% in 2024, up from 4.0% in 2023 [3]. Profit Forecast and Investment Recommendations - The report adjusts the revenue forecast for the feed business downward for 2024-2025 due to declining demand, while increasing the revenue forecast for the pig farming segment due to rising prices [6]. - The estimated net profit for 2024-2026 is projected at 599 million, 855 million, and 868 million CNY respectively [6]. - The report suggests using 2025 earnings for valuation, with expected profits of 5.9 billion CNY from feed and pig farming, and 2.6 billion CNY from poultry [6].