DBN Group(002385) 财通证券·2024-08-24 12:23Investment Rating - The investment rating for the company is "Overweight" (maintained) [1] Core Views - The company's revenue for H1 2024 decreased by 16.4% YoY, but net profit attributable to shareholders significantly reduced losses, with a turnaround to profit in Q2 2024 [3] - Gross profit margin and net profit margin both increased in H1 2024, with gross profit margin rising by 4.4 pcts YoY to 13.1% and net profit margin improving by 3.8 pcts YoY to -1.2% [3] - The pig farming segment saw a significant improvement in profitability, with a gross margin increase of 19.5 pcts YoY to 11.7% [3] - The seed business grew rapidly, contributing RMB 300 million in revenue, up 13.5% YoY, with rice seed sales increasing by 25.3% YoY [3] Financial Performance Summary Revenue and Profit - H1 2024 revenue: RMB 13.09 billion, down 16.4% YoY [3] - H1 2024 net profit attributable to shareholders: RMB -160 million, significantly reducing losses [3] - Q2 2024 revenue: RMB 6.39 billion, down 19.0% YoY, with net profit turning positive at RMB 50 million [3] Segment Performance - Feed segment: Revenue of RMB 9.23 billion, down 20.5% YoY, contributing 70.5% of total revenue, with a gross margin of 12.7% (+0.6 pcts YoY) [3] - Pig farming segment: Revenue of RMB 2.65 billion, down 3.5% YoY, contributing 20.3% of total revenue, with a gross margin of 11.7% (+19.5 pcts YoY) [3] - Seed segment: Revenue of RMB 300 million, up 13.5% YoY, contributing 2.3% of total revenue [3] Financial Ratios - H1 2024 gross profit margin: 13.1% (+4.4 pcts YoY) [3] - H1 2024 net profit margin: -1.2% (+3.8 pcts YoY) [3] - Q2 2024 gross profit margin: 14.4% (+5.5 pcts YoY) [3] - Q2 2024 net profit margin: 0.8% (+6.8 pcts YoY) [3] Future Projections - Expected net profit attributable to shareholders for 2024-2026: RMB 248 million, RMB 697 million, and RMB 983 million, respectively [4] - EPS for 2024-2026: RMB 0.06, RMB 0.16, and RMB 0.23, respectively [4] - PE ratios for 2024-2026: 67x, 24x, and 17x, respectively [4] Historical Financial Data Income Statement - 2022A revenue: RMB 32.40 billion, 2023A revenue: RMB 33.39 billion, 2024E revenue: RMB 34.08 billion [5] - 2022A net profit: RMB 51 million, 2023A net profit: RMB -2.17 billion, 2024E net profit: RMB 248 million [5] Balance Sheet - 2022A total assets: RMB 31.23 billion, 2023A total assets: RMB 29.78 billion, 2024E total assets: RMB 30.48 billion [6] - 2022A total liabilities: RMB 18.21 billion, 2023A total liabilities: RMB 19.74 billion, 2024E total liabilities: RMB 19.97 billion [6] Cash Flow Statement - 2022A operating cash flow: RMB 1.42 billion, 2023A operating cash flow: RMB 245 million, 2024E operating cash flow: RMB 2.46 billion [6] Valuation Metrics - 2024E PE: 67x, 2025E PE: 24x, 2026E PE: 17x [5] - 2024E PB: 2.0x, 2025E PB: 1.9x, 2026E PB: 1.8x [5] - 2024E ROE: 3.0%, 2025E ROE: 7.9%, 2026E ROE: 10.3% [5]