Huatong Meat(SZ:002840) KAIYUAN SECURITIES·2025-10-28 07:41Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company's financial condition has improved, with a continuous push for cost reduction. The revenue for Q1-Q3 2025 was 6.088 billion yuan, a year-on-year decrease of 6.13%, while the net profit attributable to the parent company was 71 million yuan, an increase of 32.93% year-on-year. However, Q3 revenue was 1.844 billion yuan, down 20.52% year-on-year, and the net profit was a loss of 5 million yuan, down 102.99% year-on-year. The company has adjusted its profit forecasts for 2025 and 2027 downwards, while increasing the forecast for 2026 [4][6][10] Financial Performance Summary - For 2025, the expected net profit attributable to the parent company is 4 million yuan, with corresponding EPS of 0.00 yuan. The expected net profits for 2026 and 2027 are 352 million yuan and 545 million yuan, respectively, with EPS of 0.44 yuan and 0.68 yuan. The current stock price corresponds to P/E ratios of 2218.9, 25.0, and 16.1 for 2025, 2026, and 2027, respectively [4][10][11] Operational Insights - The company maintained stable pig output, with 1.874 million pigs sold in Q1-Q3 2025, a year-on-year decrease of 3.80%. The total pig output for Q3 was 603,000 pigs, down 1.43% year-on-year. The company is actively responding to industry capacity control policies, with a breeding stock of 133,000 pigs as of September 2025, expected to decrease to below 130,000 by year-end [5][6] Cost Management - The company has successfully reduced breeding costs, with the total cost of pigs in July to September 2025 being 13.6, 13.4, and 13.3 yuan per kilogram, respectively. The target is to reduce costs to below 13 yuan per kilogram by the end of 2025 [5][6] Financial Health - The company's financial condition continues to improve, with a debt-to-asset ratio of 60.40% as of September 2025, a decrease of 14.02 percentage points year-on-year. Cash and cash equivalents amounted to 1.338 billion yuan, an increase of 96.31% year-on-year [6][10]