Leshan Giantstar Farming&Husbandry (603477) Huaxin Securities·2024-08-14 02:00Investment Rating - The report maintains a "Buy" rating for the company, Juxing Agriculture and Animal Husbandry (603477.SH) [2][4] Core Views - The controlling shareholder's increase in holdings demonstrates confidence in the company's long-term development and decision-making [2] - The company has achieved a turnaround in Q2 2024, with expected net profit ranging from RMB 89.05 million to RMB 106.05 million, indicating a recovery from previous losses [3][4] - The company is expected to continue reducing breeding costs, with projections indicating a decrease to below RMB 13 per kilogram by the end of 2024, thereby strengthening its competitive position in the industry [3][4] Summary by Sections Company Events - On August 12, 2024, Juxing Agriculture announced a plan for the controlling shareholder, Juxing Group, to increase its stake in the company by up to RMB 50 million within 12 months [2] - As of August 12, 2024, Juxing Group holds 29.31% of the company's shares, reflecting a commitment to the company's future [2] Financial Performance - The company reported a significant increase in pig output, with 513,000 pigs slaughtered in Q1 2024, a year-on-year increase of 36.4% [3] - Revenue projections for 2024-2026 are RMB 69.71 billion, RMB 123.73 billion, and RMB 140.04 billion, respectively, with corresponding EPS of RMB 1.13, RMB 3.36, and RMB 3.22 [4][6] Cost Management - The breeding cost decreased from RMB 13.82 per kilogram in Q1 2024 to RMB 12.88 per kilogram by June 2024, with expectations for further reductions [3][4] - The company aims to optimize its production management system to enhance efficiency and profitability [3]