KINGSINO(002548) 华鑫证券·2024-08-13 01:30Investment 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 the previous year [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 in 2024, contributing to improved profit margins [2][5]. Summary by Sections Financial Performance - In H1 2024, the company expects a net profit attributable to shareholders between -43 million to -39 million yuan, with a significant reduction in losses compared to H1 2023 [2]. - The company reported a revenue of 772 million yuan from pig sales in H1 2024, a year-on-year increase of 27.15%, with a total of 598,900 pigs sold, marking a 10% increase [2][5]. Market Position - The company achieved a revenue of 2.6 billion yuan from feed processing in 2023, reflecting a year-on-year growth of 12.78%, with feed sales volume reaching 680,100 tons, up 16.70% [2][5]. - As a pioneer in the early-stage feed market in China, the company has a leading advantage in the niche of feed for piglets, with a comprehensive product matrix covering various growth stages of pigs [2][5]. Future Projections - Revenue forecasts for the company are projected at 5.16 billion yuan in 2024, 6.14 billion yuan in 2025, and 7.05 billion yuan in 2026, with corresponding EPS of 0.21, 0.30, and 0.29 yuan [5][7]. - The company is expected to improve its capital structure, with a gradual decrease in the debt ratio from 74.06% at the end of 2023 to 73.66% in Q1 2024, as profitability improves [4][5].