SHUANGHUI(SZ:000895)2024-03-28 16:00Investment Rating - The report maintains an "OUTPERFORM" rating for Shuanghui Development [3][9]. Core Views - The company achieved operating income of Rmb 60.1 billion in 2023, a year-on-year decrease of 4.2%, and a net profit of Rmb 5.1 billion, down 10.1% year-on-year. The estimated operating income for 4Q23 was Rmb 13.8 billion, a decline of 24.0% year-on-year, with a net profit of Rmb 730 million, down 53.4% year-on-year [5][9]. - The slaughtering business faced profitability challenges due to low pig prices, with revenue of Rmb 31 billion in 2023, a decrease of 7% year-on-year. The company slaughtered approximately 12.69 million heads, an increase of 12% year-on-year [9]. - The meat products segment generated revenue of Rmb 26.4 billion in 2023, a decline of 3% year-on-year, with a sales volume of 15.1 billion tons, down 4% year-on-year. The average profit per ton of meat products reached Rmb 4,130, marking a 4% increase year-on-year [5][9]. Financial Performance Summary - For 2024, the company is projected to achieve revenues of Rmb 64 billion, with net profits of Rmb 5.5 billion, reflecting a PE ratio of 16X. The target price is set at Rmb 31.75, based on a 20X PE for 2024 [6][9]. - The sales network has expanded significantly, with a total of 23,570 dealers by the end of 2023, an increase of 18.22% from the beginning of the year, which is expected to support future sales growth [6][9].