WENS FOODSTUFF GROUP CO.(300498) 国盛证券·2025-01-08 04:08Investment Rating - The report maintains a "Buy" rating for Wens Foodstuff Group Co Ltd (300498 SZ) with a target price of 16 38 RMB as of January 7 2025 [4] Core Views - Wens Foodstuff Group achieved its annual target for 2024 with revenue exceeding 100 billion RMB and net profit attributable to shareholders of 9 0-9 5 billion RMB marking a turnaround from losses [1] - The company sold 30 18 million hogs in 2024 a 15% YoY increase achieving its annual target of 30-33 million hogs with an average selling price of 16 70 RMB/kg [1] - For 2025 the company aims to reduce the comprehensive cost of hog farming to below 13 RMB/kg [1] - The broiler business saw steady growth with 1 208 billion broilers sold in 2024 a 2 1% YoY increase and an average selling price of 13 1 RMB/kg [2] - The report forecasts net profit attributable to shareholders of 9 45 billion RMB 11 17 billion RMB and 9 24 billion RMB for 2024-2026 respectively with YoY growth rates of 248% 18 1% and -17 3% [2] Financial Performance - Revenue for 2024E is projected at 104 364 billion RMB a 16 1% YoY increase while 2025E and 2026E revenues are expected to grow by 1 3% and 12 5% respectively [3] - Net profit attributable to shareholders for 2024E is estimated at 9 454 billion RMB a significant turnaround from a loss of 6 390 billion RMB in 2023 [3] - EPS for 2024E is forecasted at 1 42 RMB/share up from -0 96 RMB/share in 2023 [3] - ROE is expected to improve to 21 5% in 2024E from -17 8% in 2023 [3] Operational Highlights - In Q4 2024 the company sold 8 62 million hogs with an average weight of 123 8kg and a selling price of 16 7 RMB/kg achieving a profit of approximately 335 RMB per hog [1] - The broiler business in Q4 2024 saw sales of 338 million broilers with an average selling price of 12 6 RMB/kg and a profit of 2 5 RMB per broiler [2] Valuation Metrics - The current PE ratio for 2025E is 9 8x with a PB ratio of 2 1x [3] - EV/EBITDA for 2025E is projected at 7 5x [9]