Sunner(002299) KAIYUAN SECURITIES·2024-10-27 06:40Investment Rating - The investment rating for the company is "Buy" (maintained) [1]. Core Views - The company has shown significant cost reduction in livestock food production, revealing low investment value [2]. - The company reported a revenue of 13.76 billion yuan for Q1-Q3 2024, a year-on-year decrease of 1.18%, with a net profit of 383 million yuan, down 48.25% year-on-year [2]. - The company is expected to benefit from the upcoming meat consumption peak in Q4, with rising white chicken prices [2]. - The projected net profits for 2024-2026 are 682 million, 811 million, and 1.56 billion yuan, respectively, with corresponding EPS of 0.55, 0.65, and 1.25 yuan [2]. Summary by Sections Company Overview - The company is focused on increasing the output of white chicken while achieving significant cost reductions [3]. - The company has successfully increased chicken sales volume by 18.87% year-on-year, reaching 1.023 million tons, with a sales revenue of 10.11 billion yuan [3]. Financial Performance - For Q1-Q3 2024, the company achieved a sales revenue of 5.00 billion yuan in meat products, a decrease of 3.52% year-on-year, with a sales volume of 267,200 tons [4]. - The average selling price for meat products was approximately 22,080.84 yuan per ton, down 11.75% year-on-year [4]. - The company’s total revenue is projected to grow from 18.49 billion yuan in 2023 to 24.45 billion yuan in 2026, reflecting a compound annual growth rate (CAGR) of 13.5% [5]. Cost Management - The company has successfully reduced its breeding costs to below 9,300 yuan per ton, achieving a new low in comprehensive meat production costs [3]. - The company is advancing its self-researched breeding chicken variety, Saint Ze 901Plus, to enhance breeding efficiency [3]. Market Position - The company is expanding its product offerings and has seen steady growth in sales across various channels, including a more than 30% increase in export sales [4]. - The retail segment has experienced nearly 20% year-on-year growth in revenue, driven by new product launches and brand development [4].