WENS FOODSTUFF GROUP CO.(SZ:300498) Guoxin Securities·2024-10-24 00:30Investment Rating - The investment rating for the company is "Outperform the Market" [4][13]. Core Views - The company achieved a turnaround in net profit for the first three quarters of 2024, with a total revenue increase of 16.56% year-on-year to 75.419 billion yuan and a net profit of 6.408 billion yuan [1][5]. - In Q3 2024, revenue rose by 21.95% year-on-year to 28.661 billion yuan, with net profit soaring by 3097.03% to 5.081 billion yuan [1][5]. - The company sold 21.562 million pigs and 870 million chickens in the first three quarters of 2024, with respective year-on-year growth rates of 18% and 1% [1][5]. Financial Performance Summary - The company’s breeding performance has improved, with a breeding rate of 87% and a market weight rate of 92% for pigs as of July 2024 [2]. - The average comprehensive cost of pig farming decreased to approximately 14.6 yuan/kg, aligning with the company's cost target [2]. - The company aims to achieve a pig output of 30-33 million heads in 2024, with 21.562 million heads sold in the first three quarters [2]. - The asset-liability ratio improved to 54.86% by the end of Q3 2024, down 4.09 percentage points from Q2 2024, with cash and cash equivalents of 3.679 billion yuan [2]. Profit Forecast and Financial Indicators - The company forecasts net profits of 7.587 billion yuan, 15.819 billion yuan, and 12.031 billion yuan for 2024, 2025, and 2026, respectively, with corresponding PE ratios of 17, 8, and 11 times [2][11]. - Revenue is projected to grow from 89.921 billion yuan in 2023 to 110.315 billion yuan in 2024, reflecting a 22.7% increase [3][11]. - The net profit is expected to recover from a loss of 6.390 billion yuan in 2023 to a profit of 7.587 billion yuan in 2024 [3][11].