NEW HOPE(SZ:000876) China Post Securities·2024-09-03 09:30Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market index [7]. Core Insights - The company reported a revenue of 49.577 billion yuan for the first half of 2024, a year-on-year decline of 28.62%, but showed a significant reduction in net loss, down 59.18% to -1.217 billion yuan. The second quarter saw a return to profitability with a net profit of 717 million yuan [5][6]. - The recovery in the pig farming sector is attributed to rising pig prices and a focus on core business strategies, leading to improved performance in the second quarter [6]. - The company’s feed business stabilized, with a revenue of 32.886 billion yuan in the first half, down 16% year-on-year, but showing signs of improvement in the second quarter [6]. Financial Performance Summary - The company’s revenue for 2023 is projected at 141.703 billion yuan, with a significant decline expected in 2024 to 117.778 billion yuan, followed by a gradual recovery in subsequent years [8][9]. - The net profit attributable to the parent company is expected to recover from 249.2 million yuan in 2023 to 1.201 billion yuan in 2024, with further growth anticipated in the following years [8][9]. - Earnings per share (EPS) are projected to increase from 0.05 yuan in 2023 to 0.26 yuan in 2024, reaching 0.87 yuan in 2025 before slightly declining in 2026 [8][9].