HAID GROUP(SZ:002311) Shanxi Securities·2024-10-22 04:00Investment Rating - The report maintains a "Buy-A" rating for the company Hai Da Group (002311.SZ) [1][2] Core Views - The overall fundamentals of the company continue to show a recovery trend, with a slight decline in revenue but a significant increase in net profit [1][2] - The company's market share in the feed business has further improved, despite a decrease in overall industry production [2] - The domestic pig farming business has shown a recovery in fundamentals, with rising prices and improved profitability [2] Financial Performance Summary - For the first three quarters of 2024, the company achieved operating revenue of 848.61 billion yuan, a year-on-year decrease of 2.38%, while net profit attributable to shareholders was 36.24 billion yuan, a year-on-year increase of 60.95% [1] - The earnings per share (EPS) for the first three quarters was 2.18 yuan, with a return on equity (ROE) of 17.28%, up by 5.26 percentage points year-on-year [1] - The company expects net profit attributable to shareholders to reach 43.77 billion yuan in 2024, with corresponding EPS of 2.63 yuan [2][3] Market and Industry Analysis - The total production of industrial feed in the country decreased by 4.3% year-on-year, while the average prices of various feed types also saw declines [2] - The company’s feed sales growth rate remains above the industry average, indicating a gain in market share [2] - The average price of domestic pigs rose significantly in Q3, leading to improved profitability for pig farming operations [2] Future Projections - The company forecasts operating revenue to grow to 135.43 billion yuan in 2024, with a year-on-year growth rate of 16.6% [3] - Expected net profit for 2025 and 2026 is projected at 5.39 billion yuan and 6.33 billion yuan, respectively, with corresponding EPS of 3.24 yuan and 3.80 yuan [3][4]