YISHENG(SZ:002458) Guolian Securities·2024-09-06 10:00Investment Rating - The investment rating for the company is "Accumulate (First Coverage)" [4]. Core Views - The company holds a leading position in the breeding chicken market, with a market share of approximately one-third in the grandparent white feather meat chicken segment and about one-tenth in the commercial chicken seedling market, indicating a solid leadership status [6][7]. - The company's introduced Lihong new breed of white feather chicken shows significant competitive advantages in egg production rates and feed-to-meat ratios, allowing for premium pricing in both parent and commercial segments [6][7]. - The supply chain remains relatively stable, with a decrease in the import volume of grandparent meat chickens due to the impact of avian influenza in the U.S. and flight restrictions, while the company's breeding rhythm has remained consistent during this period [6][7]. Summary by Sections 1. Chicken Breeding Business - The company has a high market share in the grandparent white feather meat chicken segment, approximately one-third of the domestic market, and a one-tenth share in the commercial chicken seedling market, reinforcing its leading position [6][7]. - The competitive edge is highlighted by the introduction of the Lihong new breed, which has advantages in egg production and feed conversion rates, allowing for premium pricing across both parent and commercial segments [6][7]. - The stability of the supply chain is noted, with a decline in imports of grandparent meat chickens due to external factors, while the company's breeding activities have remained steady [6][7]. 2. Pig Breeding Business - The company has accelerated its pig breeding business by importing 1,300 purebred pigs from Denmark in 2021, aiming to expand its pig breeding scale [6][7]. - The company has begun to release its two-way pigs for sale, with production capacity gradually increasing, and achieved profitability in its pig business in the second quarter of 2024 [6][7]. 3. Financial Forecast and Valuation - The company is expected to achieve revenues of 3.042 billion, 3.232 billion, and 3.432 billion yuan from 2024 to 2026, with net profits of 407 million, 462 million, and 501 million yuan respectively, and EPS of 0.37, 0.42, and 0.45 yuan per share [6][7]. - The company is rated as a leading player in the white chicken breeding sector, with significant core advantages, and a target price of 8.60 yuan is set based on a 2.0x PB valuation for 2024 [6][7].