LIHUA(SZ:300761) HUAXI Securities·2025-11-04 05:12Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company reported a turnaround in Q3, achieving profitability after losses in previous quarters, with a net profit of 138 million yuan in Q3, a significant improvement from previous losses [2][3] - The company's revenue for the first three quarters of 2025 was 13.493 billion yuan, a year-on-year increase of 6.38%, while the net profit attributable to shareholders decreased by 75.27% to 287 million yuan [2] - The company has seen a recovery in chicken prices since August, leading to profitability in its chicken business, while the pig farming segment continues to benefit from improved production efficiency and declining costs [4][5] Summary by Sections Financial Performance - In Q3 2025, the company achieved a net profit of 138 million yuan, marking a significant recovery from previous losses [3] - The company sold 415 million yellow feathered chickens, generating sales revenue of 10.059 billion yuan [4] - The average selling price of chickens in Q1, Q2, and Q3 was 10.95, 10.55, and 11.49 yuan per kilogram, respectively [4] Business Segments - The chicken business reported a net loss of 84 million yuan in the first three quarters, but Q3 showed a profit of approximately 50 million yuan [3] - The pig farming segment sold 1.5058 million pigs, generating sales revenue of 2.705 billion yuan, with a net profit of approximately 354 million yuan [5] Cost Management - The complete cost of chicken in Q3 was approximately 11.4 yuan per kilogram, up from 11 yuan in the first half of the year, but still manageable due to rising prices [4][6] - The complete cost of pigs has been decreasing, reaching 12.6 yuan per kilogram in Q3, with a target of 12 yuan by the end of the year [5][7] Future Outlook - The company is expected to maintain a strong market position in the chicken industry, with an anticipated increase in market share due to the exit of less competitive players [6] - Projections for revenue and net profit for 2025-2027 are 17.924 billion yuan, 8.37 billion yuan; 21.016 billion yuan, 18.29 billion yuan; and 23.589 billion yuan, 23.38 billion yuan, respectively [7]