Wellhope(SH:603609) KAIYUAN SECURITIES·2025-08-20 14:04Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a steady growth in feed sales and improved cost management, leading to a recovery in breeding profits. The revenue for H1 2025 reached 17.407 billion yuan, a year-on-year increase of 16.27%, with a net profit of 233 million yuan, marking a return to profitability. The growth is attributed to increased sales in feed, poultry, and pig farming, alongside lower prices for key feed ingredients like soybean meal and corn, which helped reduce breeding costs [4][5] Summary by Sections Financial Performance - In H1 2025, the company achieved a revenue of 17.407 billion yuan, up 16.27% year-on-year. The net profit attributable to shareholders was 233 million yuan, a significant turnaround from losses in the previous year. Q2 2025 saw revenue of 9.699 billion yuan, a 25.17% increase year-on-year, with a net profit of 151 million yuan, reflecting a 68.23% growth [4][8] Feed Business - The company’s feed sales reached 2.1 million tons in H1 2025, a 15.70% increase year-on-year. The breakdown includes pig feed at 740,000 tons (up 23.54%), poultry feed at 940,000 tons (up 12.17%), and ruminant feed at 370,000 tons (up 15.99%). The company has effectively linked its pig feed and breeding operations, with bulk pig feed sales increasing by 34% [5] Poultry Business - The company raised 380 million white feather broilers in H1 2025, with an average weight of 2.9-3 kg and a survival rate of 96-97%. The slaughter volume for white feather broilers reached 460 million, a 9.52% increase year-on-year, with a target of 960 million for the year. The sales of chicken parts in high-value channels increased by 2.3 percentage points year-on-year, and the production of processed and cooked products rose by 40% [6] Pig Farming Business - The company had a breeding stock of 58,000 sows as of H1 2025, with 47,000 being productive sows. The company slaughtered 840,000 pigs in H1 2025, with 740,000 being fattened pigs. The expected slaughter volume for 2025 is projected to reach 1.8-2 million pigs, indicating potential for profit expansion [7] Financial Projections - The company forecasts net profits of 559 million yuan, 748 million yuan, and 812 million yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 0.61, 0.82, and 0.89 yuan. The current stock price corresponds to P/E ratios of 14.5, 10.8, and 10.0 for the next three years [4][8]