LIHUA(300761) Guoxin Securities·2024-10-24 00:30Investment Rating - The investment rating for the company is "Outperform the Market" [3][14][16] Core Views - The company has shown a significant recovery in profitability, with a 507.71% year-on-year increase in net profit attributable to shareholders for the first three quarters of 2024, reaching 1.161 billion yuan [1][5] - Revenue growth is primarily driven by increased output of chickens and pigs, along with a rebound in pork prices, while profitability has improved due to lower breeding costs [1][5] - The company is expected to benefit from the upcoming peak consumption season, with a positive outlook for the poultry and pig farming sectors [2][5] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 12.684 billion yuan, a year-on-year increase of 13.65%, with Q3 revenue at 4.879 billion yuan, up 17.74% quarter-on-quarter and 16.12% year-on-year [1][5] - The net profit attributable to shareholders for Q3 was 586 million yuan, reflecting a year-on-year increase of 91.02% [1][5] Chicken Production - The company reported a chicken output of 376 million birds for the first three quarters, a year-on-year increase of 12.07%, with Q3 output at 140 million birds, up 14.67% quarter-on-quarter [2][5] - The average selling price for chicken was 13.22 yuan/kg for the first three quarters, down 3.64% year-on-year, with Q3 price at 13.24 yuan/kg, showing a year-on-year decline of 9.93% [2][5] Pig Production - The company achieved a pig output of 791,600 heads for the first three quarters, a year-on-year increase of 35.36%, with Q3 output at 356,700 heads, up 47.52% quarter-on-quarter [2][5] - The average selling price for pigs was 17.63 yuan/kg for the first three quarters, up 14.30% year-on-year, with Q3 price at 19.72 yuan/kg, reflecting a year-on-year increase of 21.20% [2][5] Profitability Metrics - The gross profit margin for the first three quarters was 16.11%, an increase of 11.73 percentage points year-on-year, while the net profit margin was 9.13%, up 11.68 percentage points year-on-year [10] - Operating cash flow for the first three quarters was 1.806 billion yuan, a year-on-year increase of 100% [10]