Shennong Group(SH:605296) Huaan Securities·2025-08-27 12:49Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a net profit of 388 million yuan for the first half of 2025, with a year-on-year increase of 212.7%. The revenue for the same period was 2.798 billion yuan, reflecting a year-on-year growth of 12.2% [2][3] - The company aims to achieve a total pig output of approximately 3.2 million heads in 2025, with the first half of 2025 showing an output of 1.5395 million heads, which is 44%-48.1% of the annual target [3][5] - The company has maintained a low debt ratio of 26.0% as of June 2025, down 1.8 percentage points from the previous quarter [2][3] Financial Performance - For the first half of 2025, the company achieved revenues of 2.798 billion yuan, with a net profit of 388 million yuan, and a non-recurring net profit of 398 million yuan [2] - The company’s total revenue is projected to reach 6.071 billion yuan in 2025, with a year-on-year growth of 8.7%. The net profit is expected to be 767 million yuan, reflecting a year-on-year increase of 11.7% [8] - The company’s gross profit margin is expected to improve from 20.8% in 2024 to 21.3% in 2025 [8] Cost Management - The total cost of pig farming in Q2 2025 is approximately 12.4 yuan per kilogram, remaining stable compared to Q1 2025 [3][4] - The company has successfully reduced its pig farming costs from 13.9 yuan per kilogram in 2024 to 12.4 yuan per kilogram in Q1 2025 [4] Future Outlook - The company anticipates a steady increase in pig output, projecting 3.2 million heads in 2025, 3.52 million in 2026, and 3.87 million in 2027, with respective year-on-year growth rates of 41%, 10%, and 10% [5] - The company expects to achieve a main business revenue of 6.071 billion yuan in 2025, with net profits projected to reach 767 million yuan [5][8]