KINGSINO(SZ:002548) Huaxin Securities·2024-08-13 01:37Investment Rating - The report assigns an "Accumulate" rating for the company, marking it as the first time this rating has been given [2]. Core Insights - The company has turned a profit in Q2 2024, aided by a rebound in pig prices and improved feed material costs, leading to a significant reduction in losses compared to H1 2023 [2][4]. - The company aims to increase its feed sales volume by 50% in 2024, targeting a total of 102.02 million tons, supported by innovative marketing strategies and an expanded sales team [2][5]. - The company is focused on reducing breeding costs, with expectations that the cost of pig sales will remain below 15.5 yuan per kilogram for the full year 2024, enhancing profitability [2][5]. Financial Performance - For H1 2024, the company anticipates a net profit attributable to shareholders between -43 million to -39 million yuan, with a non-recurring net profit forecasted between -41 million to -37 million yuan [2]. - In Q2 2024, the company expects to achieve a net profit of 9 to 13 million yuan, with a non-recurring net profit of 5 to 9 million yuan [2]. - The company reported a 27.15% year-on-year increase in pig sales revenue for H1 2024, totaling 772 million yuan, with a 10% increase in the number of pigs sold [2][5]. Revenue Projections - Revenue forecasts for the company are 51.60 billion yuan for 2024, 61.40 billion yuan for 2025, and 70.49 billion yuan for 2026, with corresponding EPS of 0.21, 0.30, and 0.29 yuan [5][7]. - The company is expected to see a revenue growth rate of 27.7% in 2024, followed by 19.0% in 2025 and 14.8% in 2026 [7]. Capital Structure - The company's debt ratio peaked at 74.06% at the end of 2023 but is expected to decline gradually as profitability improves and pig prices recover [4][5]. - As of Q1 2024, the debt ratio was reported at 73.66%, indicating a positive trend towards financial stability [4].