SHUANGHUI(SZ:000895) KAIYUAN SECURITIES·2024-08-16 08:33Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2][6] Core Views - The company's performance in Q2 2024 was under pressure, with significant improvements in the slaughtering business profitability [6] - The company plans to continue high dividend payouts, proposing a mid-term dividend of 6.6 yuan per 10 shares (including tax), resulting in a dividend payout ratio of 99.6% [6] - Due to the pressure on terminal demand for meat products, profit forecasts have been adjusted downwards for 2024-2026 [6] Financial Performance Summary - In H1 2024, the company achieved revenue of 27.59 billion yuan, a year-on-year decrease of 9.3%, and a net profit attributable to shareholders of 2.296 billion yuan, down 19.0% [6] - Q2 2024 revenue was 13.32 billion yuan, a decline of 9.7% year-on-year, with a net profit of 1.025 billion yuan, down 24.0% [6] - The company expects net profits for 2024-2026 to be 4.89 billion, 5.24 billion, and 5.51 billion yuan respectively, with corresponding EPS of 1.41, 1.51, and 1.59 yuan [6] Business Segment Performance - The meat product segment reported Q2 2024 revenue of 5.58 billion yuan, down 15.2% year-on-year, with operating profit of 1.44 billion yuan, a decrease of 4.6% [7] - The slaughtering business generated Q2 2024 revenue of 6.73 billion yuan, down 15.8% year-on-year, but operating profit increased by 7.9% to 160 million yuan due to rising pork prices [8] - The company is focusing on expanding its network and enhancing its product offerings to stabilize sales and profit growth in the meat product segment [7]