LONGDA(002726) 浙商证券·2024-09-18 08:03Investment Rating - The investment rating for the company is maintained as "Buy" [5] Core Views - In H1 2024, the company turned a profit with a significant increase in the proportion of revenue from the food business, despite a decline in overall revenue due to weak terminal demand [1][2] - The company aims to continue adjusting its revenue structure to enhance the income share from the food segment, thereby improving overall profitability [1] Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 5.044 billion yuan, a year-on-year decrease of 25.01%, but reported a net profit attributable to shareholders of 58 million yuan, marking a turnaround from losses [1] - In Q2 2024, revenue was 2.521 billion yuan, down 22.42% year-on-year, with a net profit of 28 million yuan, also indicating a recovery [1] Business Segments - The breeding segment has become profitable due to an increase in the average selling price of biological products compared to the same period last year, alongside a decrease in breeding costs [2] - The slaughtering segment reported revenue of 3.9 billion yuan in H1 2024, down 17% year-on-year, with a slaughter capacity of 15 million pigs, but a decline in slaughter volume and fresh product sales [2] - The food segment's revenue increased to 1.082 billion yuan, a year-on-year growth of 0.39%, now accounting for 21.45% of total revenue, with the prepared dishes business contributing 973 million yuan, up 1.12% [2] Profitability Metrics - The gross margin for H1 2024 was 4.98%, an increase of 5.94 percentage points year-on-year, primarily due to a higher proportion of semi-finished and finished food products and cost optimization [3] - The net profit margin for H1 2024 was 1.26%, up 11.19 percentage points year-on-year, indicating a significant recovery in profitability [3] Future Projections - The company has adjusted its previous profit forecasts, expecting revenues of 14.474 billion yuan, 16.102 billion yuan, and 18.159 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 8.67%, 11.25%, and 12.77% [4] - The projected net profits for the same years are 106 million yuan, 211 million yuan, and 278 million yuan, reflecting a recovery and growth trajectory [4]