TECON(002100) Minsheng Securities·2024-10-31 04:00Investment Rating - The report maintains a "Recommended" rating for the company [6] Core Views - The company's profitability has significantly improved, with a net profit of 5.7 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 212.1% [1] - The sales volume of the feed business has steadily increased, with a total of 204.36 million tons sold in the first three quarters of 2024, up 2.25% year-on-year [1] - The company has reduced its breeding costs, with the total cost of raising pigs dropping to 15.2 yuan/kg in the first three quarters of 2024, and further down to 14.3 yuan/kg in Q3 2024 [2] - The company has a strong cash flow, with a net cash flow from operating activities of 13.7 billion yuan in Q3 2024, up 23.9% quarter-on-quarter [3] - The company is expected to continue benefiting from high pig prices in the second half of 2024, with projected net profits of 8.18 billion, 11.00 billion, and 15.19 billion yuan for 2024-2026 [3] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 13.09 billion yuan, down 11.0% year-on-year, while Q3 revenue was 5.09 billion yuan, also down 11.3% year-on-year [1] - The gross profit margin for the first three quarters of 2024 was 12.0%, an increase of 7.9% year-on-year [3] Sales and Production - The company sold 214.4 million pigs in the first three quarters of 2024, a year-on-year increase of 4.2%, with an average selling price of 15.7 yuan/kg, up 9.3% year-on-year [2] - The company has improved its breeding efficiency, with an increase in the average number of piglets born per litter by 1.87 compared to Q2 [2] Financial Health - As of Q3 2024, the company's cash reserves stood at 36.5 billion yuan, an increase of 27.6% quarter-on-quarter [3] - The company's debt-to-asset ratio was 49.9%, a decrease of 1.2 percentage points from the previous quarter [3]