牧原股份：点评报告：板块中军，攻防俱佳

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The company reported a turnaround in profitability for the first half of 2024, achieving a net profit of 829 million yuan, compared to a loss in the previous year [1] - Revenue growth was driven by an increase in both sales volume and prices of live pigs, with a 9.63% year-on-year increase in revenue to 56.866 billion yuan [1][2] - The company has sufficient production capacity and plans to increase its pig output in 2024, with a target of 66 to 72 million pigs, representing a year-on-year growth of 3.42% to 12.82% [3] Summary by Sections Financial Performance - In H1 2024, the company sold 32.388 million pigs, a 7.01% increase year-on-year, with average selling prices rising significantly from around 14 yuan/kg in 2023 to 17.73 yuan/kg in June 2024 [2] - The total cost of pig farming has decreased, with the complete cost nearing 14 yuan/kg, down from 15 yuan/kg in 2023 [2][4] Production Capacity - As of June 2024, the company's pig farming capacity reached 80.48 million heads per year, with a breeding sow inventory of 3.309 million heads, an increase from the end of 2023 [3] Cost Management - The company has improved its production management and disease prevention measures, leading to a significant reduction in farming costs [4] - The company expects further cost reductions in the second half of 2024 due to improved production metrics and lower feed costs [4] Strategic Positioning - The company is well-positioned in the market, with strong performance expected due to favorable pricing cycles and cost advantages [5] - The shift in focus from rapid expansion to cost management is anticipated to enhance cash flow and shareholder returns [5][11]