NWF(SH:600975) Guoxin Securities·2025-04-14 14:53Investment Rating - The report maintains an "Outperform the Market" rating for the company [5][30]. Core Views - The company achieved a turnaround in net profit for 2024, benefiting from rising pig prices and improved breeding costs, with a revenue of 7.045 billion yuan, a year-on-year increase of 25.09%, and a net profit of 39.32 million yuan, compared to a loss in the previous year [1][8]. - The company has expanded its breeding capabilities through the acquisition of Tianxin Breeding, enhancing its core competitiveness in pig breeding and extending its operations across the entire pig industry chain [2][30]. - The company is expected to maintain steady growth in pig output, with a forecasted output of approximately 4.9 million heads in 2025, 5.5 million in 2026, and 5.9 million in 2027 [21][30]. Financial Summary - For 2024, the company reported a revenue of 7,045 million yuan, with a year-on-year growth of 25.1%, and a net profit of 39 million yuan [4][29]. - The company’s operating cash flow improved significantly, reaching 857 million yuan, accounting for 12.16% of total revenue [17]. - The company’s total assets were reported at 12,358 million yuan in 2024, with a debt ratio of 74% [31]. Business Segmentation - The pig breeding business is projected to generate revenues of 5.382 billion yuan in 2024, with a gross margin of 9.8% [27]. - The slaughtering and cold storage business is expected to contribute 686 million yuan in revenue for 2024, with a gross margin of 3.8% [24]. - The frozen meat business is forecasted to generate 321 million yuan in revenue in 2024, with a gross margin of 0.8% [24]. Future Projections - The company is expected to achieve revenues of 7.892 billion yuan in 2025, 8.547 billion yuan in 2026, and 8.775 billion yuan in 2027, with corresponding net profits of 36 million yuan, 35 million yuan, and 17 million yuan respectively [29][30]. - The estimated earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 0.03 yuan, 0.03 yuan, and 0.01 yuan respectively [30].