SHUANGHUI(SZ:000895) KAIYUAN SECURITIES·2025-08-14 08:12Investment Rating - The investment rating for the company is "Outperform" (maintained) [1] Core Views - The company's specialized reforms have shown results, leading to improved sales of meat products. The company reported a revenue of 28.41 billion yuan in H1 2025, a year-on-year increase of 3.0%, and a net profit attributable to shareholders of 2.323 billion yuan, up 1.2% year-on-year. The second quarter alone saw a revenue of 14.14 billion yuan, a 6.2% increase year-on-year, and a net profit of 1.186 billion yuan, up 15.7% year-on-year. The company maintains a high dividend payout ratio of 96.9%, making it a stable value investment target [3][4]. Summary by Sections Financial Performance - In Q2 2025, the meat product segment achieved a revenue of 5.62 billion yuan, a year-on-year increase of 0.8%. The sales volume and average price were approximately 328,000 tons and 17.1 yuan/kg, respectively, with year-on-year increases of 0.6% and 0.1%. The operating profit for this segment was 1.5 billion yuan, up 4.4% year-on-year, with a profit per ton of approximately 4,569 yuan, maintaining a high level [4][5]. Business Segments - The slaughtering business reported a revenue of 6.77 billion yuan in Q2 2025, a year-on-year increase of 0.6%, but the operating profit dropped significantly by 61.7% to 59.89 million yuan due to fluctuating pig prices. The fresh product sales volume was 415,000 tons, up 12.2% year-on-year, but the average price fell by 10.4% year-on-year [5]. Future Outlook - The company is expected to continue improving its sales volume and maintain high profit margins in the meat product segment, with anticipated cost reductions and increased market investments. The company aims to enhance its fresh product sales through new customer development and differentiated product promotion [4][5]. Financial Projections - The company forecasts net profits attributable to shareholders of 5.24 billion yuan, 5.51 billion yuan, and 5.82 billion yuan for 2025, 2026, and 2027, respectively. The expected earnings per share (EPS) for the same years are 1.51 yuan, 1.59 yuan, and 1.68 yuan, with corresponding price-to-earnings (P/E) ratios of 16.6, 15.8, and 15.0 times [3][6].