DONGRUI GROUP(SZ:001201) Huachuang Securities·2025-04-30 11:08Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][15]. Core Insights - The company achieved a revenue of 1.52 billion yuan in 2024, a year-on-year increase of 46.58%, and a net profit attributable to shareholders of -66 million yuan, improving by 87.28% year-on-year. In Q1 2025, revenue reached 494 million yuan, up 76.58% year-on-year, with a net profit of -6 million yuan, an increase of 93.31% year-on-year [2][4]. Financial Performance Summary - Revenue Growth: The company is projected to have total revenue of 2.52 billion yuan in 2025, with a growth rate of 65.6%, and 3.25 billion yuan in 2026, with a growth rate of 29.0% [4]. - Net Profit: The net profit is expected to turn positive in 2025, reaching 31 million yuan, and further increasing to 303 million yuan in 2026, reflecting a significant growth rate of 146.9% [4]. - Earnings Per Share (EPS): EPS is projected to improve from -0.25 yuan in 2024 to 0.12 yuan in 2025, and further to 1.18 yuan in 2026 [4]. Operational Highlights - The company successfully completed its target of over 800,000 pigs for slaughter in 2024, achieving a 40% year-on-year increase. The slaughter structure includes 63% commercial pigs and 34% piglets [2][8]. - The company aims to achieve a total slaughter of 1.5-1.6 million pigs in 2025 and 2 million in 2026, supported by a fully constructed capacity of 2 million pigs [2][8]. Cost Management - The company has seen a continuous improvement in cost management, with total costs expected to be below 15 yuan/kg in 2025 and 14 yuan/kg in 2026. The cost per piglet has decreased from 400 yuan to 280 yuan [2][8]. - The complete cost has reduced from 17.2 yuan/kg in Q1 2024 to 15.4 yuan/kg in Q1 2025, with further reductions anticipated [2][8]. Capital Expenditure and Financial Health - Capital expenditures are expected to be around 200 million yuan in 2025, significantly lower than previous years, indicating a strong financial position to navigate through market cycles [2][8]. - The company's debt-to-asset ratio stands at 45.4%, which is below 50%, indicating a solid balance sheet and low financial risk [5][8]. Investment Recommendation - Given the company's robust expansion plans, low debt levels, and the absence of significant capital expenditure needs, it is expected to successfully navigate through market downturns and achieve its slaughter targets, with a projected net profit of 31 million yuan in 2025 and 303 million yuan in 2026 [2][8].