WENS FOODSTUFF GROUP CO.(SZ:300498) Huaxin Securities·2024-10-25 14:40Investment Rating - The report maintains a "Buy" rating for the company, Wens Foodstuff Group (300498.SZ) [1][3]. Core Insights - The company has demonstrated significant revenue growth, achieving a total operating income of 75.384 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 16.5%. The net profit attributable to shareholders reached 6.408 billion yuan, with a substantial turnaround from losses in the previous year [1]. - In Q3 2024, the company reported a single-quarter revenue of 28.644 billion yuan, a year-on-year increase of 21.9%, and a net profit of 5.081 billion yuan, marking the highest quarterly performance since its backdoor listing in 2015 [1]. - The growth in performance is attributed to rising pig prices and the company's continuous expansion in breeding scale, effective cost control, and improved management of breeding processes [1]. Summary by Sections Revenue and Profitability - For the first nine months of 2024, Wens Foodstuff Group sold 21.5619 million pigs, a year-on-year increase of 17.66%, generating sales revenue of 43.914 billion yuan, up 34.01% year-on-year. The breeding scale has steadily expanded, and the cost of breeding has been effectively controlled [1]. - The company’s comprehensive cost of pig breeding has decreased to below 13.8 yuan per kilogram, with a conservative estimate of 14.2 yuan per kilogram for Q3 [1]. Chicken Business Performance - The company sold 871 million meat chickens in the first nine months of 2024, a slight increase of 1.03%, with sales revenue of 24.463 billion yuan, reflecting a decrease of 2.56% due to minor fluctuations in chicken prices. However, the chicken breeding performance remains stable, with significant cost reduction and efficiency improvements [1]. Share Buyback and Dividend Distribution - Wens Foodstuff Group plans to repurchase shares using its own funds, with a total amount between 900 million to 1.8 billion yuan, and a maximum repurchase price of 27.01 yuan per share. This move reflects the company's confidence in its long-term development [2]. - The company has proposed a cash dividend distribution plan, intending to distribute 1.5 yuan per 10 shares to all shareholders, totaling approximately 999.5 million yuan, which aims to enhance shareholder value and market confidence [2]. Earnings Forecast - The company is projected to achieve revenues of 109.078 billion yuan, 124.102 billion yuan, and 131.833 billion yuan for the years 2024, 2025, and 2026, respectively. The earnings per share (EPS) are expected to be 1.42 yuan, 1.87 yuan, and 1.72 yuan for the same years, with corresponding price-to-earnings (PE) ratios of 13.1, 10.0, and 10.8 times [3].