Huatong Meat(SZ:002840) Southwest Securities·2024-11-07 08:27Investment Rating - The report does not provide a specific investment rating for the company, but it suggests continuous attention due to strong growth potential in the pig farming sector [6]. Core Views - The company reported a significant increase in net profit for Q3 2024, driven by favorable sales conditions in the pig market, with a net profit of 1.72 billion yuan, a year-on-year increase of 9150.26% [1]. - The company is expanding its pig farming capacity and reducing costs, aiming for self-sufficiency in breeding, raising, and slaughtering pigs to enhance competitiveness [1]. - The overall pig market is experiencing a price increase, with the average selling price of pigs reaching its highest point in the year during Q3 [1]. - The company is also seeing steady growth in its slaughtering segment, with revenue from this business increasing by 4.06% year-on-year [1]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported revenue of 6.485 billion yuan, a year-on-year increase of 5.21%, and a net loss of 53 million yuan, but a significant improvement in non-recurring profit [1][2]. - Q3 revenue was 2.32 billion yuan, up 13.40% year-on-year, with a net profit of 1.72 billion yuan, marking a substantial increase compared to the previous year [1][2]. Sales and Market Conditions - The company sold 611,700 pigs in Q3 2024, a 15.87% increase from the same period last year, generating sales revenue of 1.268 billion yuan [1]. - The average selling prices for pigs in July, August, and September were 18.90, 19.80, and 18.80 yuan per kilogram, respectively [1]. Industry Context - The national pig output decreased by 3.15% year-on-year, leading to an overall increase in pig prices [1]. - The company is actively expanding its modern pig farming facilities and increasing the number of breeding sows, which is expected to enhance its market share and revenue [1]. Profit Forecast - The company forecasts earnings per share (EPS) of 0.42 yuan, 1.08 yuan, and 1.38 yuan for 2024, 2025, and 2026, respectively [5][8].