LIHUA(SZ:300761) Donghai Securities·2024-10-24 07:39Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company reported a significant turnaround in performance for the first three quarters of 2024, achieving revenue of 12.684 billion yuan, a year-on-year increase of 13.65%, and a net profit attributable to shareholders of 1.161 billion yuan, a remarkable increase of 507.71% [6] - The improvement in profitability is attributed to the recovery in pork and chicken prices, increased output, and a decline in breeding costs, leading to a substantial enhancement in the profitability of the breeding segment [6] - The company is a leading player in the yellow feathered chicken breeding industry, with a target of maintaining an annual growth rate of 8-10% in output, while also having sufficient pig breeding capacity and potential for further cost reductions [7] Summary by Sections Financial Performance - In Q3 2024, the company achieved revenue of 4.879 billion yuan, a year-on-year increase of 16.12%, and a net profit of 586 million yuan, up 91.02% year-on-year [6] - The total sales of meat chickens for the first three quarters reached 376 million, a 12.07% increase year-on-year, with Q3 sales averaging 13.24 yuan/kg [6] - The company sold 791,600 pigs in the first three quarters, a 35.36% increase year-on-year, with Q3 sales averaging 19.72 yuan/kg, a 20.87% increase year-on-year [6] Future Outlook - The company expects continued profitability growth in Q4 2024 due to favorable market conditions for pork and chicken prices, alongside ongoing cost reductions [7] - Profit forecasts for 2024-2026 are adjusted to 1.677 billion yuan, 1.882 billion yuan, and 1.388 billion yuan respectively, with corresponding EPS of 2.03 yuan, 2.27 yuan, and 1.68 yuan [7] - The current price-to-earnings ratios are projected at 10.94, 9.75, and 13.21 for the years 2024, 2025, and 2026 respectively [8]