Shennong Group(605296)2024-11-01 06:15Investment Rating - The report maintains an "Outperform" rating for the company, indicating a positive outlook for its performance relative to the market [5][6]. Core Insights - The company reported a significant increase in earnings for Q3 2024, with a net profit of 356 million yuan, representing a year-on-year growth of 662.97% [5]. - The growth in earnings is primarily attributed to the pig farming business, driven by an increase in both the number of pigs sold and rising pig prices [5]. - The company plans to repurchase shares worth 100 to 200 million yuan, reflecting confidence in its long-term development [5]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a total revenue of 4.078 billion yuan, a year-on-year increase of 42.11% [6]. - The net profit attributable to shareholders for the same period was 480 million yuan, showing a remarkable year-on-year increase of 321.20% [6]. - The average selling price of pigs in Q3 2024 was approximately 19 yuan per kilogram, up 23.5% year-on-year [5]. - The company sold a total of 1.6637 million pigs in the first three quarters, a 50% increase compared to the previous year [5]. Cost and Efficiency - The total cost of pig farming in Q3 2024 was 13.6 yuan per kilogram, a decrease from 13.9 yuan per kilogram in Q2 2024 [5]. - The company aims to reduce the average farming cost to below 14 yuan per kilogram for the entire year of 2024, with a target of less than 13 yuan per kilogram by 2025 [5]. Production Capacity and Future Outlook - The company’s productive biological assets reached 339 million yuan by Q3 2024, marking an 8.63% increase from the previous quarter [5]. - The company expects to achieve a pig output of 2.2 million, 3.2 million, and 4 million pigs in 2024, 2025, and 2026, respectively [5].