LONGDA(SZ:002726) HUAXI Securities·2025-06-08 09:17Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company achieved a turnaround in profitability in FY24, with a revenue of 10.99 billion yuan, down 17.49% year-on-year, and a net profit attributable to shareholders of 0.22 billion yuan, compared to a loss of 1.54 billion yuan in the same period last year [2][6] - The company is actively adjusting its business structure, focusing on the development of the prepared food segment, which is expected to grow significantly in the future [7][8] Revenue and Profit Analysis - In FY24, the company reported revenues from various segments: fresh and frozen meat (8.99 billion yuan), cooked food (0.215 billion yuan), prepared food (1.687 billion yuan), and others, with declines of 6.65%, 10.06%, and 14.98% respectively [3] - The company’s gross margin for FY24 was 3.98%, an increase of 5.56% year-on-year, indicating improved profitability despite revenue pressures [4] - The net profit margin for FY24 was 0.20%, showing a significant recovery from the previous year's losses [6] Cost and Expense Management - The company’s selling, general, and administrative expenses as a percentage of revenue were 0.94%, 2.28%, and 0.07% respectively for FY24, reflecting a strategic focus on cost control [5] - In Q4 FY24, the company recorded a significant asset impairment loss of 0.57 billion yuan, but also realized an investment gain of 0.63 billion yuan from the sale of a subsidiary [5] Future Projections - Revenue forecasts for 2025 and 2026 have been adjusted to 11.73 billion yuan and 12.66 billion yuan respectively, with an expected EPS of 0.10 yuan and 0.14 yuan [9] - The company aims to expand its market presence in the prepared food sector, targeting a market size of around 5 billion yuan [8]