HAID GROUP(002311) 东兴证券·2024-10-23 11:00Investment Rating - The report maintains a "Strong Buy" rating for the company [3]. Core Views - The company reported a revenue of 84.861 billion yuan for the first three quarters of 2024, a year-on-year decrease of 2.38%, while the net profit attributable to shareholders was 3.624 billion yuan, reflecting a year-on-year increase of 60.95% [3]. - The feed business shows significant competitive advantages with rapid growth in overseas sales, achieving over 1 million tons in sales in overseas markets, a 30% year-on-year increase [3]. - The pig farming sector is expected to improve profitability due to rising pig prices and decreasing feed costs, with the average price of pigs in Q3 reaching 19.68 yuan per kilogram [3]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 32.565 billion yuan, down 4.75% year-on-year, and a net profit of 1.499 billion yuan, up 30.17% year-on-year [3]. - The total feed production for the first three quarters was 22.787 million tons, a decrease of 4.3% year-on-year, with the average price of compound feed at 3.46 yuan per kilogram, down 8.6% year-on-year [3]. Business Segments - The feed segment's market share continues to grow, with expectations for steady improvement in gross margins due to the ongoing decline in raw material prices [3]. - The company is expanding its overseas feed production capacity and aims to replicate its domestic success in international markets, which is anticipated to contribute to new growth [3]. Profitability Outlook - The company forecasts net profits of 4.236 billion yuan, 5.179 billion yuan, and 6.066 billion yuan for 2024, 2025, and 2026 respectively, with EPS projected at 2.55 yuan, 3.11 yuan, and 3.65 yuan [4]. - The report indicates a PE ratio of 18, 15, and 13 for the years 2024, 2025, and 2026 respectively, suggesting a favorable long-term growth outlook [4].