Huatong Meat(SZ:002840) KAIYUAN SECURITIES·2024-08-31 15:36Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company is expected to see significant cost reductions in the second half of 2024, with stable increases in livestock output leading to gradual performance releases [1][3] - The report projects a decrease in net profit for 2024-2026, with estimates of 0.77 billion, 0.88 billion, and 0.66 billion respectively, and corresponding EPS of 1.24, 1.42, and 1.06 yuan [1][2] Financial Performance Summary - The company's revenue for the first half of 2024 was 4.165 billion yuan, a year-on-year increase of 66.59% [2] - The company reported a net profit of 0.38 billion yuan for the first half of 2024, reflecting a year-on-year increase of 1.72% [1][2] - The total market capitalization is 7.058 billion yuan, with a circulating market capitalization of 5.357 billion yuan [2] Operational Insights - In the first half of 2024, the company achieved internal revenue of 2.344 billion yuan from pig farming, a 29.37% increase, with a total of 1.3364 million pigs sold, marking a 15.91% increase [3] - The average selling price of pigs was 15.36 yuan per kilogram, up 3.30% year-on-year [3] - The company is expected to reduce its total cost from 16.45 yuan per kilogram in Q1 2024 to 15 yuan per kilogram by the end of 2024 [3] Slaughtering Business Development - The company's slaughtering business generated revenue of 3.934 billion yuan in the first half of 2024, a 4.06% increase, with an estimated slaughter volume exceeding 5 million pigs for the entire year [4] - As of June 2024, the company has established 25 pig slaughtering facilities, achieving a preliminary nationwide layout [4] Financial Projections - The report forecasts a significant increase in revenue from 8.578 billion yuan in 2023 to 15.322 billion yuan in 2024, representing a year-on-year growth of 78.6% [5] - The projected net profit for 2024 is expected to be -0.605 billion yuan, with a recovery to 0.876 billion yuan in 2025 and 0.656 billion yuan in 2026 [5]