Huatong Meat(SZ:002840) Western Securities·2025-08-28 12:45Investment Rating - The investment rating for the company is "Buy" [6] Core Views - The company reported a revenue of 4.244 billion and a net profit attributable to shareholders of 76 million for the first half of 2025, showing a year-on-year increase of 1.89% and 163.98% respectively, with a basic EPS of 0.11 yuan [2][6] - The company achieved profitability in its pig farming business due to a decrease in breeding costs, despite a slight decline in sales prices [2][3] - The company has increased its pig sales volume by 15.91% year-on-year in the first half of 2025, with a total of 1.2712 million pigs sold [2][3] Summary by Sections Financial Performance - In the first half of 2025, the company achieved a gross margin of 7.27%, an increase of 3.82 percentage points year-on-year, attributed to improved breeding efficiency and reduced costs [3] - The company’s operating expenses ratio decreased to 6.06%, down by 0.89 percentage points year-on-year, with effective control over various expenditures [3] Future Outlook - The company expects to maintain growth in pig output, with projected net profits for 2025, 2026, and 2027 at 261 million, 375 million, and 686 million respectively, representing year-on-year growth rates of 258.0%, 43.4%, and 82.9% [4][11] - The projected PE ratios for the next three years are 33.8, 23.6, and 12.9 [4][11]