WENS FOODSTUFF GROUP CO.(SZ:300498) Guohai Securities·2025-10-23 13:35Investment Rating - The report maintains a "Buy" rating for the company [1][8]. Core Insights - The company's main business operates steadily, with continuous cost improvements. In the first three quarters of 2025, the company achieved operating revenue of 758.17 billion yuan, a year-on-year increase of 0.53%, while the net profit attributable to shareholders was 52.56 billion yuan, a year-on-year decrease of 17.98% [4][6]. - The decline in net profit is primarily due to the decrease in the prices of main products, which has reduced the operating profit of the breeding industry. By the end of the third quarter, the company's debt ratio decreased to 49.41%, indicating improved financial stability and risk resistance [6][8]. Summary by Sections Financial Performance - In Q3 2025, the company reported operating revenue of 259.42 billion yuan, a year-on-year decrease of 9.49%, and a net profit of 17.81 billion yuan, down 64.94% year-on-year [4][6]. - The company has seen a significant reduction in breeding costs, with piglet production costs dropping to around 260 yuan per head and a meat pig market rate of approximately 93% [6]. Earnings Forecast - The company is expected to achieve revenues of 969.72 billion yuan, 1,017.67 billion yuan, and 1,112.12 billion yuan for the years 2025, 2026, and 2027, respectively. The net profit attributable to shareholders is projected to be 50.06 billion yuan, 90.97 billion yuan, and 179.73 billion yuan for the same years [6][8]. - The corresponding price-to-earnings ratios (PE) are expected to be 24, 13, and 7 times for 2025, 2026, and 2027, respectively, indicating a favorable long-term outlook for the company [6][8].