Huatong Meat(SZ:002840) China Post Securities·2025-09-01 10:49Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market [6][9]. Core Insights - The company reported a significant improvement in its financial performance, achieving a net profit of 0.76 billion yuan in the first half of 2025, a substantial turnaround from losses in the previous year. This was primarily driven by a decrease in breeding costs [4][5]. - The company has seen a decline in both the sales price and volume of pigs sold, yet it remains profitable due to cost reductions achieved through better procurement management and production efficiency [5]. - The slaughtering and meat processing segment generated revenue of 41.42 billion yuan, reflecting a year-on-year increase of 5.29%, with a notable rise in the number of pigs slaughtered [5]. Financial Summary - The company’s total revenue for 2025 is projected to reach 101.02 billion yuan, with an expected growth rate of 11.12% [6][8]. - Earnings per share (EPS) are forecasted to increase significantly from 0.09 yuan in 2024 to 1.20 yuan by 2027, indicating strong growth potential [6][8]. - The company’s debt-to-asset ratio stands at 72.4%, with expectations for a decrease to 51.9% by 2027, suggesting improved financial stability [8].