WENS FOODSTUFF GROUP CO.(SZ:300498) Southwest Securities·2024-09-03 03:30Investment Rating - The report maintains a "Buy" rating for the company [1][3]. Core Views - The company has turned losses into profits, with a significant acceleration in growth. In H1 2024, the company achieved revenue of 46.758 billion yuan, a year-on-year increase of 13.49%, and a net profit attributable to shareholders of 1.327 billion yuan, marking a turnaround from losses [2]. - The performance in Q2 2024 showed revenue of 24.91 billion yuan, up 17.36% year-on-year, and a net profit of 2.563 billion yuan, also indicating a return to profitability [2]. - The company's pig farming business generated a profit of approximately 1.8 billion yuan in Q2, while the chicken farming business contributed around 800 million yuan [2]. - The sales of meat pigs reached 14.3742 million heads, a year-on-year increase of 21.96%, with an average selling price of 15.32 yuan/kg, up 5.09% year-on-year [2]. - The company has seen a steady development in pig production capacity, with a total of 26.26 million pigs sold in 2023, a year-on-year increase of 46.65% [2]. Summary by Sections Financial Performance - In H1 2024, the company reported revenue of 46.758 billion yuan, a 13.49% increase year-on-year, and a net profit of 1.327 billion yuan, reversing previous losses [2]. - Q2 2024 results showed revenue of 24.91 billion yuan, a 17.36% increase year-on-year, and a net profit of 2.563 billion yuan [2]. - The average selling price for meat pigs was 15.32 yuan/kg, reflecting a 5.09% increase year-on-year [2]. Business Segments - The pig farming segment was profitable, contributing approximately 1.8 billion yuan in Q2, while the chicken farming segment generated around 800 million yuan [2]. - The company sold 14.3742 million meat pigs in the reporting period, marking a 21.96% increase year-on-year [2]. - The chicken sales were 548 million heads, a slight decrease of 1.04% year-on-year, with an average selling price of 13.29 yuan/kg, up 1.51% year-on-year [2]. Cost Management - The comprehensive cost of pig farming decreased to approximately 7.4 yuan/kg, down about 1.2 yuan/kg year-on-year, achieving the annual cost target set at the beginning of the year [2]. - The comprehensive cost for chicken farming was reduced to around 6.2 yuan/kg, a decrease of 0.8 yuan/kg year-on-year [2]. Future Earnings Forecast - The expected EPS for 2024-2026 is projected to be 1.09 yuan, 1.69 yuan, and 1.35 yuan, respectively, with corresponding dynamic PE ratios of 15.5, 10, and 12.5 times [3][4].