Leshan Giantstar Farming&Husbandry (603477) Huaxin Securities·2024-10-07 02:00Investment Rating - The report maintains a "Buy" investment rating for the company [1][9]. Core Views - The company is expected to achieve significant growth in pig output due to its dual advantages in cost and capital, with a projected 60% increase in pig output by 2025 [4][31]. Summary by Sections 1. Core View Logic - The company utilizes a "company + farmer" cooperation model and an integrated project model for capacity expansion, with the former accounting for over 80% of its current production scale, supporting its performance growth [4][31]. 2. Domestic and International Resource Integration - The company integrates domestic and international resources to achieve industry-leading cost control, leveraging high-quality foreign breeding systems and rich domestic management experience [5][20]. - The breeding cost is projected to be around 12.7 yuan/kg by the end of 2024, with further optimization potential of 0.2-0.3 yuan/kg [5][16]. 3. Light Asset + Integrated Capacity Expansion - The company’s light asset model and integrated production mode are expected to drive high growth in pig output, with an estimated 180,000 breeding sows by the end of 2024 [4][36]. - The company has seen significant increases in production capacity, with a 162.5% increase in 2021 and a 66.7% increase in 2022 [28][36]. 4. Sufficient Capital to Support Capacity Expansion - The company has raised substantial funds through various financing methods, including 4.2 billion yuan from a private placement and 1 billion yuan from convertible bonds, to support its capacity expansion [6][24]. - The company maintains a low debt-to-asset ratio compared to industry averages, indicating a strong financial position [6][24]. 5. Profit Forecast - Revenue forecasts for 2024, 2025, and 2026 are 65.03 billion yuan, 93.68 billion yuan, and 101.11 billion yuan, respectively, with corresponding EPS of 1.40 yuan, 1.82 yuan, and -0.93 yuan [7][10].