温氏股份：公司半年报点评：景气回升，成本下降，业绩扭亏

Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The company has shown steady improvement in breeding performance and is expected to benefit from rising livestock prices in the future [5] - The company reported a significant turnaround in profitability, with a net profit of 1.33 billion yuan in the first half of 2024, compared to a loss in the previous year [4] - The company is expected to maintain high profitability in the second half of the year due to favorable market conditions and reduced costs [5] Financial Performance Summary - In the first half of 2024, the company achieved operating revenue of 46.76 billion yuan, a year-on-year increase of 13.49%, and a net profit of 1.33 billion yuan, marking a return to profitability [4] - The company sold 14.37 million pigs in the first half of 2024, a year-on-year increase of 21.96%, with an average selling price of 15.32 yuan/kg, up 5.09% year-on-year [4] - The cost of pig farming decreased significantly, with comprehensive costs dropping to approximately 7.4 yuan/kg, down 1.2 yuan/kg year-on-year [4] - The company sold 548 million chickens in the first half of 2024, with a revenue of 15.67 billion yuan, showing stable operations despite a slight decline in sales volume [4] Future Outlook - The company is expected to maintain high profitability in the second half of 2024, with pig prices likely to remain elevated due to industry recovery [5] - Earnings per share (EPS) forecasts for 2024 and 2025 are projected at 1.56 yuan and 1.66 yuan respectively, with a reasonable valuation range of 25.0 to 31.2 yuan based on a price-to-earnings (PE) ratio of 16-20 times [5][6] - The company is anticipated to continue improving production efficiency and may consider moderate expansion and increased dividends in the future [5]