LONGDA(002726) 华鑫证券·2024-11-03 13:01Investment Rating - The report maintains a "Buy" investment rating for the company [2][4]. Core Insights - The company has focused on its core business, leading to a revenue decline but ongoing optimization of its business structure. For the first three quarters of 2024, the company achieved revenue of 8.014 billion yuan, a decrease of 21% year-on-year, while net profit attributable to shareholders was 73 million yuan, compared to a loss of 649 million yuan in the same period of 2023 [2][3]. - In Q3 2024, the company reported revenue of 2.970 billion yuan, down 12% year-on-year, but managed to achieve a net profit of 15 million yuan, compared to a loss of 24 million yuan in Q3 2023. The gross margin increased by 1 percentage point to 4.60% due to business structure optimization [2][3]. Summary by Sections Financial Performance - For Q1-Q3 2024, the company reported a revenue of 8.014 billion yuan, a 21% decrease year-on-year. The net profit attributable to shareholders was 73 million yuan, a significant improvement from a loss of 649 million yuan in the same period of 2023. The Q3 revenue was 2.970 billion yuan, down 12% year-on-year, with a net profit of 15 million yuan [2][3]. - The company’s gross margin improved to 4.60% in Q3 2024, with selling and management expense ratios showing slight changes [2][3]. Business Segments - The company’s breeding segment saw a decrease in output, but profitability was maintained due to rising pig prices and controlled feed costs. The pre-prepared food segment experienced revenue growth in Q3, driven by improved demand during the restaurant peak season and contributions from existing customers [3]. - The company is expanding its product offerings and customer base, focusing on high-value products and enhancing its channel structure to increase sales [3]. Profitability Forecast - The company is expected to improve its profitability gradually, with projected EPS of 0.09 yuan, 0.17 yuan, and 0.24 yuan for 2024, 2025, and 2026 respectively. The current stock price corresponds to PE ratios of 73, 39, and 28 times for the respective years [4][6].