WENS FOODSTUFF GROUP CO.(SZ:300498) Orient Securities·2025-12-11 09:19Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 22.68 CNY for 2026, based on a 14x valuation multiple [3][11]. Core Insights - The company has achieved a record high in pig sales, with November 2025 sales reaching 4.3535 million heads, a year-on-year increase of 49.71% and a month-on-month increase of 11.83%. The average selling price for pork in November was 11.71 CNY/kg, showing only a slight increase due to high supply and lagging demand [10]. - In the poultry sector, chicken sales in November 2025 were 117.5544 million heads, a decrease of 8.4% month-on-month but an increase of 6.02% year-on-year. The average selling price for chicken was 13.22 CNY/kg, reflecting a year-on-year increase of 3.77% [10]. - The report highlights ongoing market-driven capacity reduction in the pig farming industry, which is expected to support long-term price increases for pork due to the current weak price expectations and policy-driven factors [10]. Financial Summary - The company's projected revenue for 2025 is 98.736 billion CNY, with a year-on-year decrease of 5.8%. The operating profit is expected to be 7.134 billion CNY, a decrease of 28.4% year-on-year. The net profit attributable to the parent company is projected at 6.693 billion CNY, down 27.5% year-on-year [9]. - The earnings per share (EPS) forecast for 2025 is 1.01 CNY, with subsequent projections of 1.62 CNY for 2026 and 2.35 CNY for 2027 [3][11]. - The gross margin is expected to be 13.3% in 2025, improving to 20.5% by 2027, while the net margin is projected to be 6.8% in 2025 and 13.9% in 2027 [9].