Sunner(002299) Tianfeng Securities·2024-10-27 09:15Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative return of over 20% within the next six months [5][13]. Core Views - The company reported a significant quarter-on-quarter profit increase in Q3 2024, driven by cost management strategies and improved production efficiency [2][3]. - The poultry segment showed stable growth in sales volume, with a 21.49% year-on-year increase in Q3 2024 [3]. - The processed food segment also experienced growth, with a 10.44% year-on-year increase in sales volume in Q3 2024 [3]. - The company is expected to benefit from structural gaps in breeding and recent consumer stimulation policies, indicating potential industry recovery [3]. Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 13.762 billion yuan, a slight decrease of 1.18% year-on-year, and a net profit of 383 million yuan, down 48.25% year-on-year [1]. - In Q3 2024, the company reported revenue of 4.925 billion yuan, a year-on-year increase of 1.62% and a quarter-on-quarter increase of 6.55% [2]. - The net profit for Q3 2024 was 281 million yuan, a decrease of 10.38% year-on-year but an increase of 71.16% quarter-on-quarter [2]. - The company plans to distribute a cash dividend of 2 yuan per 10 shares to shareholders [1]. Segment Analysis - Breeding Segment: The poultry breeding segment sold 1.023 million tons of chicken from January to September 2024, a year-on-year increase of 18.87% [3]. - Processed Food Segment: The processed food segment sold 267,200 tons from January to September 2024, a year-on-year increase of 9.33% [3]. - Self-Developed Breeding Chickens: The company has promoted 32 million sets of "Shengze 901" breeding chickens, achieving a 20% market share domestically and has begun exporting [3]. Financial Forecast - The company is projected to achieve revenues of 20.451 billion yuan, 23.240 billion yuan, and 26.309 billion yuan for 2024, 2025, and 2026 respectively, with net profits of 788.65 million yuan, 1.722 billion yuan, and 2.184 billion yuan [4][7].