SuKen Agriculture(SH:601952) Tai Ping Yang·2024-08-23 03:00Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 14, compared to the last closing price of 9.32 [1][10]. Core Insights - The company has shown a stable growth in its main business, with an expansion of land resource advantages. The summer grain production reached a new high, with a total output of 137 million jin (6.85 million tons), an increase of 12.4 million jin (0.62 million tons) year-on-year. However, revenue has slightly decreased due to falling grain prices, which are now stabilizing and expected to rise [2][3]. - The company's gross profit margin improved to 13.11%, up 1.22 percentage points year-on-year, with significant increases in gross margins for its subsidiaries [2][3]. - The company has been expanding its self-operated farmland, reaching approximately 1.316 million mu, an increase of 34,000 mu year-on-year, enhancing its land resource advantages [2][3]. Financial Performance Summary - For the first half of 2024, the company reported revenue of 5.056 billion yuan, a decrease of 4.37% year-on-year, while net profit attributable to shareholders was 294 million yuan, an increase of 4.84% year-on-year. The basic earnings per share were 0.21 yuan, with a weighted average ROE of 4.4% [2][3]. - The company forecasts net profits of 871 million yuan and 968 million yuan for 2024 and 2025, respectively, with corresponding PE ratios of 15 and 13 [3][5].