SHUANGHUI(SZ:000895) Huachuang Securities·2025-04-30 06:36Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 28 CNY [2][6]. Core Views - The company reported a slight decline in total revenue for Q1 2025, with a total revenue of 14.3 billion CNY, down 0.1% year-on-year. The net profit attributable to shareholders was 1.14 billion CNY, down 10.6% year-on-year [2][6]. - The meat product business faced challenges due to weak consumer demand and inventory destocking, leading to a 17.8% decline in revenue to 5.58 billion CNY in Q1 2025. However, the company is expected to improve its performance in the coming quarters as inventory levels are low and new channels show growth [6][8]. - The slaughtering business showed a revenue increase of 6.1% to 7.0 billion CNY in Q1 2025, driven by an increase in slaughter volume and a more stable market environment [6][9]. - The company is expected to achieve steady growth throughout the year, supported by improved operational efficiency in its breeding business and a focus on specialized operations [6][8]. Financial Summary - For the fiscal years 2024 to 2027, the company is projected to have total revenues of 59.56 billion CNY, 61.77 billion CNY, 63.79 billion CNY, and 65.70 billion CNY, respectively, with year-on-year growth rates of -0.6%, 3.7%, 3.3%, and 3.0% [2][12]. - The net profit attributable to shareholders is forecasted to be 4.99 billion CNY, 5.24 billion CNY, 5.48 billion CNY, and 5.73 billion CNY for the same period, with growth rates of -1.3%, 5.1%, 4.4%, and 4.6% [2][12]. - The earnings per share (EPS) are expected to be 1.44 CNY, 1.51 CNY, 1.58 CNY, and 1.65 CNY for 2025 to 2027, with corresponding price-to-earnings (P/E) ratios of 18, 17, and 16 [2][12].