TRS(SZ:002567) China Post Securities·2025-05-07 06:36Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market index [6][10]. Core Insights - The company reported a revenue of 24.34 billion yuan for 2024, a year-on-year decline of 9.67%, but achieved a net profit of 355 million yuan, marking a significant turnaround from losses [3][4]. - In Q1 2025, the company generated revenue of 5.97 billion yuan, a year-on-year increase of 22.40%, although it still faced a net loss of 77.05 million yuan due to challenges in the feed and breeding segments [3][4]. - The feed business showed signs of recovery in Q1 2025, with a 12.26% increase in external feed sales, despite a 24.98% decline in 2024 [4][5]. Summary by Sections Company Overview - The latest closing price is 4.84 yuan, with a total market capitalization of 6.9 billion yuan [2]. Financial Performance - The company’s feed business revenue decreased by 24.98% to 15.05 billion yuan in 2024, while the breeding business revenue increased by 48.68% to 7.66 billion yuan [4][5]. - The company expects to sell between 5 to 5.5 million pigs in 2025, with a focus on reducing breeding costs and improving operational efficiency [5]. Earnings Forecast and Valuation - Projected earnings per share (EPS) for 2025, 2026, and 2027 are 0.11 yuan, 0.12 yuan, and 0.71 yuan respectively, reflecting a positive growth trajectory [6][7]. - The report anticipates a revenue growth rate of 11.90% in 2025, with a gradual increase in net profit expected in subsequent years [7][9].