Shennong Group(SH:605296) GUOTAI HAITONG SECURITIES·2025-12-31 03:28Investment Rating - The investment rating for the company is "Accumulate" with a target price of 33.58 CNY [6][12]. Core Insights - The company maintains a leading position in breeding costs, with a projected continuous growth in pig sales volume. The company's low debt ratio and high cash flow security are highlighted [2][12]. - The report indicates that the company's breeding cost as of October 2025 is 12.2 CNY/kg, which remains industry-leading. It is expected that breeding costs will continue to decline in 2026 [12]. - The company sold approximately 300,000 pigs in 2025, representing a year-on-year growth of about 32%. The company aims to reach a target of 5 million pigs sold [12]. - The company's debt ratio is low, with asset-liability ratios of 26.41%, 27.39%, and 27.07% for 2023 to Q3 2025, indicating a stable financial position [12]. Financial Summary - Total revenue is projected to grow from 3,891 million CNY in 2023 to 7,469 million CNY in 2027, reflecting a compound annual growth rate (CAGR) of approximately 13.8% [4]. - Net profit attributable to the parent company is expected to recover from a loss of 401 million CNY in 2023 to a profit of 978 million CNY in 2027 [4]. - Earnings per share (EPS) is forecasted to increase from -0.76 CNY in 2023 to 1.86 CNY in 2027 [4]. - The return on equity (ROE) is projected to improve from -9.6% in 2023 to 15.1% in 2027 [4]. Market Data - The company's market capitalization is approximately 15,454 million CNY, with a total share capital of 525 million shares [7]. - The stock price has fluctuated between 24.81 CNY and 35.70 CNY over the past 52 weeks [7]. - The current price of the stock is 29.45 CNY [12].