Shandong Xiantan (SZ:002746) China Post Securities·2025-08-28 10:58Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market [6][10]. Core Insights - The company, Xiantan Co., Ltd. (仙坛股份), reported a significant increase in net profit for the first half of 2025, achieving a net profit of 137 million yuan, which represents a year-on-year growth of 344.55%. This growth occurred despite a decline in product prices within the industry [4][5]. - The company has been able to increase its chicken product sales due to enhanced production capacity and improved management efficiency, leading to a reduction in costs. The average price of chicken products decreased by 2.48% year-on-year, yet sales volume increased by 9.34% for chicken products and 16.82% for processed products [5]. - The report highlights the ongoing expansion of the company's production capacity through its Chuzhou project, which is expected to double the company's capacity upon completion. The project has already seen 35 chicken farms operational, with a total output of 33.27 million chickens in the first half of 2025, marking a 38.02% increase year-on-year [5][6]. Financial Summary - The company achieved a revenue of 2.54 billion yuan in the first half of 2025, reflecting a year-on-year increase of 5.24% [4]. - The earnings per share (EPS) forecast for 2025-2027 is projected to be 0.28 yuan, 0.34 yuan, and 0.37 yuan respectively, indicating a steady growth trajectory [6]. - The report provides a detailed financial forecast, with expected revenues of 54.49 billion yuan in 2025, growing to 60.62 billion yuan by 2027, alongside a projected net profit of 240.25 million yuan in 2025, increasing to 320.70 million yuan by 2027 [6][9].