LONGDA(SZ:002726) KAIYUAN SECURITIES·2024-09-03 08:20Investment Rating - The investment rating for the company is "Outperform" (Maintain) [1] Core Views - The company is experiencing stable growth in its prepared food segment, while its breeding and slaughtering operations have turned profitable due to rising pork prices [3][4] - The prepared food business is expected to continue performing well, contributing positively to the company's overall profitability [3] Financial Performance Summary - In H1 2024, the company reported revenue of 5.04 billion yuan, a year-on-year decrease of 25.0%, but achieved a net profit attributable to shareholders of 58 million yuan, marking a turnaround from losses [3] - In Q2 2024, revenue was 2.52 billion yuan, down 22.4% year-on-year, with a net profit of 28 million yuan, also indicating a recovery [3] - The operating cash flow turned positive with a net cash flow of 222 million yuan, showing improved operational efficiency [3] Segment Performance - The food segment generated revenue of 1.08 billion yuan in H1 2024, a slight increase of 0.39% year-on-year, with prepared food revenue at 970 million yuan, up 1.12% [4] - The slaughtering segment saw revenue of 3.9 billion yuan, down 17% year-on-year, with a slaughter volume of 2.468 million heads, down 24.6% [4] - The breeding segment, despite a decrease in output, became profitable due to rising pork prices and lower breeding costs [4] Profitability Metrics - In Q2 2024, the net profit margin increased significantly by 20.97 percentage points year-on-year, driven by rising pork prices and reduced raw material costs [5] - The gross profit margin improved by 10.83 percentage points year-on-year, reflecting better cost management and pricing strategies [5] Future Outlook - The company plans to focus on large B customers and enhance its prepared food development, aiming to increase the proportion of this segment in its overall business [6] - Profit forecasts for 2024-2026 are set at 95 million, 212 million, and 330 million yuan respectively, with corresponding EPS of 0.09, 0.20, and 0.31 yuan [3][7]