LONGDA(002726) 浙商证券·2024-11-06 02:15Investment Rating - The report maintains a "Buy" rating for Longda Foodstuff (002726) [6] Core Views - Longda Foodstuff's revenue declined slightly in 24Q3 due to focusing on core business and reducing non-core operations, while profitability improved [1] - The company's food business proportion increased, indicating potential for future growth [1] - Net profit attributable to parent company surged 111.26% YoY in the first three quarters of 2024 [1] Financial Performance Revenue and Profit - 24Q3 revenue reached 2.97 billion yuan, down 12.12% YoY [1] - Net profit attributable to parent company in 24Q3 was 15 million yuan, up 161.61% YoY [1] - First three quarters of 2024 saw revenue of 8.014 billion yuan, down 20.70% YoY [1] Business Segments - Breeding segment achieved profitability in first three quarters with 247,600 heads slaughtered [2] - Slaughtering volume reached 3.6008 million heads in 24Q1-3, down YoY due to weak fresh product demand [2] - Food segment revenue remained stable at 1.707 billion yuan, accounting for over 20% of total revenue [2] Profitability - Gross margin improved to 4.84% in 24Q1-Q3, up 4.42 percentage points YoY [3] - Net margin reached 0.98% in 24Q1-Q3, up 7.89 percentage points YoY [3] - 24Q3 gross margin was 4.60%, up 1.44 percentage points YoY [3] Future Projections - Revenue is expected to grow to 14.474 billion yuan in 2024, 16.102 billion yuan in 2025, and 18.159 billion yuan in 2026 [4] - Net profit attributable to parent company is projected to reach 106 million yuan in 2024, 211 million yuan in 2025, and 278 million yuan in 2026 [4] - EPS is forecasted to be 0.10 yuan in 2024, 0.20 yuan in 2025, and 0.26 yuan in 2026 [4] Valuation - Current share price is 6.82 yuan with a market capitalization of 7.35987 billion yuan [6] - P/E ratio is projected at 69.52x for 2024, 34.85x for 2025, and 26.44x for 2026 [4]