Leshan Giantstar Farming&Husbandry (SH:603477) Huaxin Securities·2024-09-02 23:38Investment Rating - The report maintains a "Buy" rating for the company, Juxing Agriculture (603477.SH) [2][4]. Core Insights - The company has a leading cost advantage in the industry and is expanding capacity to drive future growth in output [2]. - In Q2 2024, the company turned a profit, achieving a revenue of 1.284 billion yuan, a year-on-year increase of 18.89%, and a net profit attributable to shareholders of 93 million yuan [2]. - The controlling shareholder, Juxing Group, plans to increase its stake in the company within 12 months, focusing on the development of pig farming [2]. - The company’s breeding costs are among the lowest in the industry, with projections indicating further reductions in the second half of 2024 [2][3]. Summary by Sections Financial Performance - In H1 2024, Juxing Agriculture reported a revenue of 2.233 billion yuan, a year-on-year increase of 13.13%, and a net profit attributable to shareholders of -45 million yuan, with a significant narrowing of losses compared to H1 2023 [2]. - The company’s breeding costs decreased to approximately 14 yuan per kilogram in Q2 2024, with expectations for further reductions in H2 2024 [2][3]. Production and Capacity - The company achieved a significant increase in pig output, with 1.0945 million pigs sold in H1 2024, including 1.0618 million commercial pigs, representing a year-on-year growth of 24.69% [2]. - The company’s biological assets reached 468 million yuan, a 24.14% increase from Q1 2024, supported by an increase in breeding stock [2]. Future Projections - Revenue forecasts for 2024, 2025, and 2026 are 6.971 billion yuan, 12.373 billion yuan, and 14.004 billion yuan, respectively, with corresponding EPS of 1.13 yuan, 3.36 yuan, and 3.22 yuan [4][6]. - The company is expected to maintain a strong growth trajectory, with a projected revenue growth rate of 72.5% in 2024 and 77.5% in 2025 [6].