Sunner(002299) Guohai Securities·2024-09-03 06:14Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved profitability in Q2 2024, with a significant improvement in performance compared to Q1 2024. The overall industry outlook is expected to improve in the second half of the year [1][4] - In the first half of 2024, the company reported a revenue of 8.837 billion yuan, a year-on-year decrease of 2.68%, and a net profit attributable to shareholders of 102 million yuan, down 76.07% year-on-year. However, Q2 2024 saw a net profit of 164 million yuan, marking a return to profitability [3][4] - The company experienced growth in production and sales, with chicken meat sales reaching 546,600 tons, a 19.16% increase year-on-year. Processed product sales also saw a notable increase of 12.49% [4] Summary by Sections Financial Performance - In Q2 2024, the company turned profitable with a net profit of 164 million yuan, a significant improvement from previous quarters. The overall revenue for the first half of 2024 was 8.837 billion yuan, reflecting a slight decline compared to the previous year [3][4] - The company’s production and sales figures showed positive trends, with chicken meat sales increasing by 19.16% and processed products by 12.49% year-on-year [4] Business Strategy - The company has optimized its food channel integration and strengthened its deep processing business. The slaughter volume increased by over 20%, and food sales grew by over 10% in the first half of 2024 [4] - The management has restructured the B-end food channels into several segments, leading to a 29.46% year-on-year growth in export business [4] Future Outlook - Revenue projections for 2024-2026 are set at 19.135 billion yuan, 21.369 billion yuan, and 23.302 billion yuan respectively, with net profits expected to be 679 million yuan, 1.354 billion yuan, and 1.111 billion yuan [4][7] - The company is positioned as a leader in the broiler chicken industry, with expectations for improved profitability as market demand recovers [4]