WENS FOODSTUFF GROUP CO.(SZ:300498) GF SECURITIES·2024-10-23 08:14Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 26.73 CNY per share, indicating an expected strong performance relative to the market [3][4]. Core Views - The company reported a significant increase in performance for Q3 2024, with revenue reaching 75.42 billion CNY (up 16.6% year-on-year) and a net profit of 6.408 billion CNY (up 241.5% year-on-year), driven by rising livestock prices and decreasing breeding costs [1][2]. - The company sold 21.562 million pigs in the first three quarters, a 17.7% increase year-on-year, with a Q3 average selling price of 19.48 CNY/kg and estimated profit per pig of approximately 680-700 CNY [1]. - Chicken sales also saw a year-on-year increase of 4.7% in Q3, with an average selling price of 13.14 CNY/kg and estimated profit per chicken of 2.5-2.7 CNY [1]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 75.42 billion CNY and a net profit of 6.408 billion CNY, with a significant increase in profitability compared to the previous year [1][2]. - The company’s EPS for 2024 is projected to be 1.57 CNY, with expected growth rates of 263.4% for net profit in 2024 and 21.6% in 2025 [2][19]. - The company’s asset-liability ratio decreased to 54.86%, down 4.1 percentage points from the previous quarter, indicating improved financial stability [1]. Sales and Production Insights - The company’s pig sales in Q3 reached 7.188 million heads, a 9.9% increase year-on-year, reflecting strong market demand [1]. - The company continues to optimize its breeding structure, with production biological assets valued at 4.849 billion CNY, showing a 1.2% increase from the previous quarter [1]. - The chicken production maintained high levels, with Q3 sales of 323 million birds, contributing to overall profitability [1].