Sunner(002299) Huaan Securities·2024-10-28 17:01Investment Rating - The investment rating for the company is "Buy" (maintained) [1]. Core Views - The company reported a Q3 profit increase of 1.1 billion, demonstrating enhanced operational resilience [1]. - For the first nine months of 2024, the company achieved a net profit attributable to shareholders of 383 million, a year-on-year decline of 48.3% [1]. - The company has maintained a cost-leading strategy, which has significantly supported profits and improved future growth flexibility [1][2]. Financial Performance Summary - For the first nine months of 2024, chicken sales increased by 23.9% year-on-year, reaching 1,023,000 tons [1]. - The average chicken product prices for Q3 were 10,000 yuan/ton, reflecting a decline compared to previous quarters [1]. - The company’s revenue for 2024 is projected to be 18.41 billion, with a slight decline of 0.4% year-on-year, followed by growth of 9.5% in 2025 and 2026 [2][4]. - The net profit attributable to shareholders is expected to be 846 million in 2024, with a year-on-year growth of 27.4% [2][4]. Cost Management and Operational Efficiency - The company has implemented continuous cost control measures, achieving the best quarterly performance in terms of costs excluding raw materials [1]. - The company is focusing on enhancing the performance of its self-developed breeding chickens, which is expected to further reduce breeding costs in the future [1]. - The company’s marketing efforts for its own brand have significantly increased, contributing to a 20% year-on-year growth in consumer-facing revenue [1][2]. Debt and Financial Ratios - As of September 2024, the company's debt-to-asset ratio decreased to 52.79%, down 2 percentage points from June 2024 [1]. - The company’s current ratio is projected to improve from 0.64 in 2023 to 0.75 in 2025 [4].