SHUANGHUI(SZ:000895) Soochow Securities·2024-08-15 16:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported a decline in revenue and net profit for H1 2024, with revenue at 27.672 billion yuan, down 9.34% year-on-year, and net profit at 2.296 billion yuan, down 19.05% year-on-year [3] - The decline in meat product sales is attributed to weak terminal demand and insufficient channel confidence, leading to slower inventory turnover [3] - The slaughtering business showed improved operating profit despite a decrease in sales volume, with a revenue of 6.73 billion yuan in Q2 2024, down 15.8% year-on-year, but operating profit increased by 8% [3] - The company is expected to see a rebound in meat product sales in the second half of the year due to the upcoming Spring Festival stocking season, with profit per ton projected to remain between 4,000 and 4,500 yuan [3] Financial Forecasts - Revenue projections for 2024-2026 are adjusted to 57.484 billion yuan, 60.813 billion yuan, and 63.204 billion yuan, reflecting a year-on-year decline of 4.4% in 2024, followed by growth in subsequent years [3] - Net profit forecasts for the same period are revised to 4.779 billion yuan, 4.998 billion yuan, and 5.256 billion yuan, with a year-on-year decline of 5.4% in 2024 [3] - The expected EPS for 2024-2026 is 1.38 yuan, 1.44 yuan, and 1.52 yuan, with corresponding P/E ratios of 17x, 16x, and 15x [3]