Leshan Giantstar Farming&Husbandry (SH:603477) Haitong Securities·2024-11-03 06:40Investment Rating - The investment rating for the company is "Outperform the Market" [1][6] Core Views - The company reported significant improvement in performance, with Q3 2024 revenue reaching 1.72 billion yuan, a year-on-year increase of 66.89%, and a net profit attributable to shareholders of 300 million yuan, compared to 10 million yuan in the same period last year [4] - The company is expected to continue increasing its output and reducing costs, which will drive further performance improvements [4][5] - The company is adopting a light-asset model to expand capacity, which is anticipated to sustain high-quality growth in the future [5][6] Summary by Sections Financial Performance - In the first three quarters of 2024, the company achieved a cumulative revenue of 3.96 billion yuan, up 31.59% year-on-year, and a net profit of 260 million yuan, a 175.7% increase year-on-year [4] - The company’s production biological assets increased by 14% to 531 million yuan compared to the mid-year report [5] Cost and Output Expectations - The company’s hog output in the first half of 2024 increased by 24.69% year-on-year, and this growth trend is expected to continue into Q3 [4][5] - The company anticipates a decrease in breeding costs, contributing to improved profitability [6] Valuation and Earnings Forecast - The forecasted earnings per share (EPS) for 2024, 2025, and 2026 are 1.08 yuan, 1.69 yuan, and 2.64 yuan respectively [6][8] - The company is assigned a price-to-book (PB) ratio of 3.2 to 3.5 for 2024, corresponding to a reasonable price range of 22.9 to 25.1 yuan [6][8] Comparative Analysis - The report includes a comparison of the company with peers, indicating its competitive position in the market [7]