MINHE(SZ:002234)2024-03-18 16:00Investment Rating - The report maintains a "Recommended" rating for the company [1]. Core Views - The company reported a revenue of 2.0747 billion yuan in 2023, representing a year-on-year increase of 28.96%. The net profit attributable to shareholders was -386.32 million yuan, an improvement of 14.54% year-on-year [1]. - The increase in revenue and reduction in losses are attributed to the improved market conditions in the white chicken industry, with factors such as tight supply of chicks and increased breeding enthusiasm contributing to higher chick prices [1]. - The company's comprehensive gross margin for 2023 was 3.28%, up by 10.74 percentage points year-on-year, while the expense ratio was 15.47%, an increase of 0.89 percentage points [1]. - In Q4 2023, the company experienced a revenue decline of 15.57% year-on-year, with a net profit of -268 million yuan, a significant drop of 123.47% [1]. Summary by Sections Financial Performance - The company sold 267 million chicks in 2023, a year-on-year increase of 3.11%, generating revenue of 749 million yuan, up 32.64%. The average price per chick was approximately 2.80 yuan, an increase of 28.64% year-on-year [1]. - The gross margin for chicks was 2.48%, an increase of 16.20 percentage points year-on-year. The company has a production capacity exceeding 300 million chicks [1]. - The sales volume of chicken products reached 84,800 tons, a year-on-year increase of 18.25%, with revenue of 1.115 billion yuan, up 32.58% [1]. - Online sales revenue surged by 180.36% year-on-year to 250 million yuan, with a gross margin of 32.26% [1]. Investment Recommendations - The company has established a circular industry chain integrating breeding, processing, and waste utilization, and is expanding its deep processing business to enhance profitability across the value chain. With the improving market conditions in the white chicken industry, the company is expected to turn losses into profits [1]. - EPS is projected to be 0.86 yuan in 2024 and 1.57 yuan in 2025, with corresponding PE ratios of 12 times and 7 times, respectively [1].