LONGDA(SZ:002726) Guohai Securities·2024-09-10 04:30Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company, Longda Food (002726), reported a turnaround in performance with a net profit of 0.58 billion yuan in H1 2024, compared to a loss of 6.24 billion yuan in the same period last year [2] - The food segment's revenue showed a slight increase of 0.39% year-on-year, reaching 1.08 billion yuan, despite a challenging consumer environment [3] - The company is focusing on optimizing product and channel structures to adapt to market conditions, including developing cost-effective products in response to consumer trends [3] - The meat processing segment faced a revenue decline of 17.04% to 3.90 billion yuan in H1 2024, but improved gross margin due to rising pig prices [3] Financial Performance Summary - In H1 2024, the company achieved total revenue of 5.04 billion yuan, a decrease of 25.01% year-on-year, but managed to turn a profit [2] - The company expects revenues of 12.1 billion yuan in 2024, with a projected net profit of 0.1 billion yuan, indicating a significant recovery from previous losses [7] - The gross margin for the food segment improved by 3.43 percentage points to 12.58% in H1 2024, driven by product upgrades and cost optimization [3][4] Future Outlook - The company aims to expand its food segment revenue and enhance operational efficiency through a diversified product portfolio and improved customer service [4][6] - Longda Food's strategic focus on the food industry, supported by its traditional strengths in meat processing, positions it well for long-term growth [6][4] - The projected earnings per share (EPS) for 2024-2026 are expected to be 0.09, 0.19, and 0.23 yuan, respectively, with a corresponding price-to-earnings (P/E) ratio decreasing from 69 to 28 times [7][9]