WENS FOODSTUFF GROUP CO.(SZ:300498) EBSCN·2025-05-06 04:43Investment Rating - The report maintains a "Buy" rating for the company, indicating confidence in its long-term growth potential [3]. Core Insights - The company achieved a revenue of 1049.24 billion yuan in 2024, a year-on-year increase of 16.68%, and a net profit attributable to shareholders of 92.3 billion yuan, marking a turnaround from losses [1][2]. - The pig farming segment saw a revenue increase of 33.71% to 648.55 billion yuan in 2024, driven by improved production performance and cost control [2]. - The company plans to distribute a cash dividend of 13.2 billion yuan for 2024, reflecting its strong profit and commitment to shareholder returns [3]. Summary by Sections Revenue and Profitability - In Q1 2025, the company reported a revenue of 243.31 billion yuan, up 11.37% year-on-year, with a net profit of 20.01 billion yuan, also a turnaround from losses [1]. - The average selling price of pigs in 2024 was 16.71 yuan/kg, a 12.83% increase year-on-year, while the total number of pigs sold reached 30.18 million, a 14.93% increase [2]. Cost Management - The total cost of pig farming was 14.4 yuan/kg in 2024, with ongoing improvements in cost control leading to a competitive advantage in the industry [2]. - The cost of chicken farming decreased to 11.2 yuan/kg by February 2025, showcasing the company's operational resilience despite seasonal price pressures [2]. Financial Health - The company's debt-to-asset ratio decreased to 51.45% by the end of Q1 2025, down 11.92 percentage points year-on-year, indicating improved financial stability [3]. - The total cash dividends and share buybacks for 2024 amounted to 29.2 billion yuan, representing 32% of the annual net profit attributable to shareholders [3]. Future Projections - The net profit forecast for 2025 has been adjusted upward to 68.28 billion yuan, while the 2026 forecast has been lowered to 107.16 billion yuan [3]. - New projections for 2027 indicate a net profit of 160.08 billion yuan, with corresponding earnings per share (EPS) estimates of 1.03, 1.61, and 2.41 yuan for 2025, 2026, and 2027 respectively [3].