LIHUA(300761) Guohai Securities·2024-10-27 06:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1][4][5] Core Views - The company has shown significant improvement in profitability, with a notable increase in revenue and net profit in Q3 2024. The revenue for Q3 reached 4.879 billion yuan, representing a year-on-year growth of 16.12%, while the net profit attributable to shareholders was 586 million yuan, up 91.02% year-on-year [3][4] - The company's yellow feather chicken business remains competitive, generating nearly 400 million yuan in profit in Q3. The pig farming business has also seen a significant reduction in costs, leading to a profit of over 200 million yuan in the same period [4] - The report anticipates continued revenue growth for 2024-2026, with projected revenues of 170.24 billion yuan, 180.65 billion yuan, and 192.8 billion yuan respectively, alongside net profits of 1.622 billion yuan, 1.755 billion yuan, and 1.801 billion yuan [1][5] Summary by Sections Recent Performance - In the first three quarters of 2024, the company achieved a total revenue of 12.684 billion yuan, a year-on-year increase of 13.65%, and turned a profit with a net profit of 1.161 billion yuan [3][4] - The company’s stock performance over the past year shows a 42.0% increase, outperforming the CSI 300 index, which increased by 12.9% [1] Business Segments - The yellow feather chicken segment maintained strong profitability, while the pig farming segment benefited from cost reductions and price advantages, leading to a significant turnaround in Q3 [4] - The slaughtering business experienced a temporary loss of approximately 20 million yuan due to capacity utilization being in a ramp-up phase [4] Financial Projections - The company’s financial forecasts indicate a recovery in profitability, with a projected PE ratio of 11, 10, and 10 for 2024, 2025, and 2026 respectively, reflecting an improving industry outlook [1][5] - The report highlights a significant improvement in cost management, with the complete breeding cost for yellow chicken maintained below 5.9 yuan per jin, and the pig farming cost at 7.3 yuan per jin [4]