TRS(SZ:002567) Tai Ping Yang·2024-09-09 03:02Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on a closing price of 4.94 [1][2]. Core Views - The company has shown significant improvement in profitability due to increased pig farming volume and reduced costs, resulting in a turnaround from losses to profits in the first half of 2024 [1][2]. - The company reported a revenue of 10.837 billion yuan for H1 2024, a decrease of 19.6% year-on-year, but achieved a net profit of 4.658 million yuan, compared to a loss of 664 million yuan in the same period last year [1][2]. - The pig farming business saw an increase in the number of pigs sold, with 1.8828 million pigs marketed, a year-on-year increase of 13.46%, and revenue from this segment reached 2.584 billion yuan, up 11.91% year-on-year [1][2]. Summary by Sections Financial Performance - The company achieved a gross margin of 12.94%, an increase of 31.98 percentage points compared to the previous year, benefiting from rising pig prices and ongoing cost optimization [1][2]. - The report forecasts a revenue growth rate of 17.88% for 2024, with expected revenues of 31.767 billion yuan, and a projected net profit of 771 million yuan [2][3]. Operational Insights - The company has improved its operational management, leading to enhanced production efficiency, with the cost of raising fattening pigs decreasing from 16.7 yuan/kg in Q1 to 16.2 yuan/kg in Q2 [1][2]. - The company has a production capacity utilization rate of approximately 60%, with several projects in Guangxi and Hunan expected to be completed and operational within the year, which will further increase capacity [1][2]. Market Position - The company is positioned as a leading player in the domestic feed and meat industry, with integrated operations expected to enhance its competitive advantages and market share over time [1][2].