Huatong Meat(SZ:002840) KAIYUAN SECURITIES·2024-11-03 15:07Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown steady growth in pig production and a decrease in costs, with a focus on continuous growth through private placements [2] - The company reported a revenue of 6.485 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 5.21%, and a net profit attributable to shareholders of 53 million yuan, up 114.91% year-on-year [2] - The forecast for net profit attributable to shareholders for 2024-2026 has been adjusted to 276 million, 159 million, and 213 million yuan respectively, with corresponding EPS of 0.44, 0.26, and 0.34 yuan [2] Summary by Sections Revenue and Profitability - For Q1-Q3 2024, the company's pig farming revenue reached 3.61 billion yuan, a year-on-year increase of 26.62%, with pig sales of 1.948 million heads, up 15.91% year-on-year [3] - In Q3 2024, revenue was 1.27 billion yuan, a year-on-year increase of 21.83%, with pig sales of 612,000 heads, also up 15.89% year-on-year [3] Cost Management - The company's total cost of pig farming in Q3 2024 was 15.7 yuan/kg, with a target to reduce costs to below 15.5 yuan/kg in Q4 [3] - The company has been successfully implementing a breeding stock replacement strategy, with the proportion of high-breeding stock increasing to 30% by September 2024 [3] Slaughtering Operations - The company processed 3.2 million pigs in Q1-Q3 2024, with an expected annual slaughter volume of 4.5 million pigs [4] - The net profit per pig for Q3 2024 is estimated to be around 9.7 yuan [4] Financial Position - As of September 2024, the company's debt-to-asset ratio was 74.42%, with cash and cash equivalents of 682 million yuan [4] - The company is in the process of a private placement to improve its financial position [4]