仙坛股份：鸡肉跌价拖累盈利，成本控制能力优秀

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 6.25 [1] Core Insights - The company's profitability is under pressure due to a 14% year-on-year decline in chicken product prices in Q2 2024, but it has demonstrated excellent cost control capabilities, achieving slight profitability despite industry losses in breeding and slaughtering [1][3] - In the first half of 2024, the company saw a 61% year-on-year increase in the sales volume of prepared dishes, and it is expected that production and sales of chicken products will continue to grow following the commissioning of the second phase of the Chucheng project in October 2024 [1][3] - The company has adjusted its profit forecasts for 2024, 2025, and 2026, expecting net profits of RMB 2.19 billion, RMB 4.17 billion, and RMB 4.08 billion respectively, down from previous estimates of RMB 6.70 billion, RMB 9.67 billion, and RMB 9.04 billion [1][4] Financial Performance Summary - In H1 2024, the company achieved revenue of RMB 2.413 billion, a decrease of 13% year-on-year, with a net profit of RMB 30.76 million, down 85% year-on-year [3] - Q2 2024 revenue was RMB 1.336 billion, down 15% year-on-year but up 24% quarter-on-quarter, with a net profit of RMB 23.73 million, down 79% year-on-year but up 238% quarter-on-quarter [3] - The average selling price of chicken products in H1 2024 was approximately RMB 8,335 per ton, a decrease of 17% year-on-year, while the sales volume remained flat at 255,600 tons [3] Production Capacity and Cost Control - The company has completed the first phase of its Chucheng project, which has an annual output of 120 million chickens, and expects to double its production capacity to 250-270 million chickens annually after the second phase is fully operational [1][3] - The company's cost control remains strong, with estimated production costs for chicken meat in Q2 2024 dropping to around RMB 8,500 per ton, significantly better than the industry average [1][3]