Wellhope(SH:603609) KAIYUAN SECURITIES·2025-10-31 04:20Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported a revenue of 28.073 billion yuan for Q1-Q3 2025, representing a year-on-year increase of 16.92%. However, the net profit attributable to shareholders was 129 million yuan, a decrease of 55.34% year-on-year, primarily due to asset impairment provisions totaling 175 million yuan [4][5] - The company has adjusted its profit forecast for 2025-2027, expecting net profits of 131 million yuan, 685 million yuan, and 733 million yuan respectively, with corresponding EPS of 0.14, 0.75, and 0.80 yuan [4][5] - The current stock price corresponds to a PE ratio of 53.4 for 2025, 10.2 for 2026, and 9.6 for 2027, indicating a potential for growth [4][5] Summary by Sections Feed Business - The company's feed sales volume reached 1.26 million tons in Q1-Q3 2025, a year-on-year increase of 16%. The sales of pig feed, poultry feed, and ruminant feed increased by 13%, 18%, and 22% respectively. The total feed sales volume for 2025 is expected to exceed 4.5 million tons, up 15% year-on-year [5] - The net profit per ton for the feed business improved consistently, with figures of 70, 73, and 78 yuan for Q1, Q2, and Q3 respectively [5] Poultry and Swine Business - In the poultry segment, the company processed 720 million chickens in Q1-Q3 2025, with an expected total of 960 million for the year. The loss per chicken in Q3 was 0.2 yuan, which is better than the industry average [6] - In the swine segment, the company sold 1.26 million fattened pigs and 170,000 piglets in Q1-Q3 2025, with an expected total of 2 million pigs for the year. The cost per kilogram in Q3 was 14.2 yuan, with self-breeding costs at 13 yuan per kilogram [6] Financial Summary and Valuation Metrics - For 2025, the company expects revenues of 38.629 billion yuan, with a year-on-year growth of 18.7%. The net profit is projected at 131 million yuan, reflecting a significant decrease from the previous year [7] - The gross margin is expected to be 4.8% in 2025, with a net margin of 0.3% [7] - The company’s return on equity (ROE) is projected to be 1.6% in 2025, improving to 7.5% by 2026 and 2027 [7]