LONGDA(SZ:002726) HTSC·2025-08-29 11:01Investment Rating - The report maintains an "Accumulate" rating for the company [6][4] Core Views - The company reported a revenue of 4.975 billion RMB in H1 2025, a year-on-year decrease of 1.38%, and a net profit attributable to the parent company of 35.17 million RMB, down 39.52% year-on-year [1][2] - Despite the decline in revenue and profit, the gross margins for slaughtering and food segments improved, driven by cost control measures [2][3] - The company continues to focus on its "one body, two wings" strategy, emphasizing food as the main business supported by slaughtering and breeding, while also paying attention to the growth of the prepared food industry [1][3] Revenue and Profit Analysis - In H1 2025, the slaughtering segment achieved a revenue of 4.073 billion RMB, an increase of 4.41% year-on-year, with a gross margin improvement of 0.71 percentage points [2][3] - The food segment reported a revenue of 866 million RMB, a decrease of 19.91% year-on-year, with a gross margin of 13.72%, up 1.14 percentage points [2][3] - Online sales of prepared dishes increased by 44.98% year-on-year, indicating strong growth in this channel [3] Financial Forecast and Valuation - The company is projected to achieve net profits of 146 million RMB, 212 million RMB, and 265 million RMB for the years 2025, 2026, and 2027, respectively, with corresponding EPS of 0.13, 0.20, and 0.25 RMB [4][9] - The target price is set at 6.34 RMB, based on a valuation of 49 times the expected earnings for 2025 [4][7]