WENS FOODSTUFF GROUP CO.(SZ:300498) Huaxin Securities·2024-10-22 03:40Investment Rating - The report maintains a "Buy" rating for the company [2][4] Core Insights - The company has signed a loan agreement for up to 1 billion yuan to support its stock repurchase plan, significantly alleviating the financial pressure associated with the buyback [2][3] - The stock repurchase plan is progressing steadily, with the potential for full implementation in the future [2][3] - The company reported a 17.66% year-on-year increase in pig sales volume for the first nine months of 2024, totaling 21.56 million pigs, contributing to a 34.01% increase in sales revenue to 43.914 billion yuan [3][4] Summary by Sections Financial Performance - The company achieved a revenue of 89.921 billion yuan in 2023, with projected revenues of 109.078 billion yuan, 124.102 billion yuan, and 131.833 billion yuan for 2024, 2025, and 2026 respectively [6][7] - The net profit for 2024 is projected to be 9.463 billion yuan, with an EPS of 1.42 yuan, reflecting a significant recovery from a loss of 6.39 billion yuan in 2023 [4][6] - The company’s gross margin is expected to improve from 0.9% in 2023 to 20.4% in 2024 [7] Cost Management - The comprehensive cost of pig farming has decreased from 7.8-7.9 yuan per jin in January 2024 to below 6.9 yuan per jin by August 2024 [3][4] - The total cost of broiler chicken production has also declined from 6.5 yuan per jin in January 2024 to 5.9-6.0 yuan per jin by July 2024 [3][4] Market Confidence - The company’s stock repurchase plan, funded by loans and internal resources, demonstrates confidence in its future growth and aims to enhance employee motivation through stock ownership plans [2][3] - As of September 30, 2024, the company has repurchased 18.22 million shares, accounting for 0.27% of its total share capital, with a total transaction amount of 300 million yuan [2][3]