HAID GROUP(SZ:002311) Guohai Securities·2024-10-23 00:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1][6]. Core Views - The company's profitability has significantly improved, with a net profit of 3.624 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 60.95%, despite a slight decline in total revenue of 848.61 billion yuan, down 2.38% year-on-year [1]. - The company has demonstrated competitive advantages in the feed industry, particularly as the market faces increased competition and demand fluctuations in various livestock sectors [1]. - The overseas business is thriving, with sales reaching 1.71 million tons in 2023, a 24% increase year-on-year, and over 1 million tons in the first half of 2024, with a growth rate exceeding 30% [1]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported total revenue of 848.61 billion yuan, a decrease of 2.38% year-on-year, while the net profit attributable to shareholders was 3.624 billion yuan, an increase of 60.95% [1]. - The company is projected to achieve revenues of 1,241.78 billion yuan, 1,435.08 billion yuan, and 1,588.56 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 4.352 billion yuan, 4.819 billion yuan, and 5.252 billion yuan [2][4]. Market Position - The company has maintained a competitive edge in the feed industry despite intensified competition, particularly in the aquaculture sector, where demand for feed has been affected by reduced farming scales and profitability [1]. - The company’s strategy of creating value for farmers through innovative products and a comprehensive service system has proven successful in both domestic and international markets [1]. Valuation Metrics - The projected P/E ratios for the company are 17, 15, and 14 for the years 2024, 2025, and 2026 respectively, indicating a favorable valuation outlook [2][4]. - The company’s return on equity (ROE) is expected to be 19% in 2024, decreasing to 17% by 2026, reflecting strong profitability [4][6].