SMAC(600073) 国投证券·2024-03-29 16:00Investment Rating - The investment rating for the company is "Buy-A" with a 6-month target price of 7.85 CNY, which corresponds to a dynamic P/E ratio of 18x for 2024 [7][25]. Core Insights - The company reported a revenue of 22.3672 billion CNY in 2023, a decrease of 10.49% year-on-year, and a net profit attributable to shareholders of 226 million CNY, down 55.13% year-on-year [1]. - The fourth quarter of 2023 saw a revenue of 5.920 billion CNY, a decline of 12.24% year-on-year, with a net loss attributable to shareholders of 93 million CNY, a significant drop of 205% year-on-year [1]. - The company anticipates a revenue target of 23.195 billion CNY for 2024, representing a modest growth of 3.7% year-on-year, driven by expected recovery in beef and pork prices, alongside growth in prepared and snack food segments [6]. Revenue Breakdown - In 2023, the revenue from various segments was as follows: beef and lamb 12.45 billion CNY (-14.6%), pig farming 1.25 billion CNY (+39.3%), pork products 3.42 billion CNY (-9.4%), canned food 1.68 billion CNY (+8.0%), and other food products 1.70 billion CNY (-31.7%) [2]. - The company sold 808,200 pigs in 2023, an increase of 14% year-on-year, which contributed to the recovery of the farming business despite losses due to low pork prices and rising environmental costs [2]. Financial Performance - The gross profit margin for 2023 was 9.8%, a decrease of 3.7 percentage points year-on-year, primarily due to a decline in the gross margin of the beef and lamb business [5]. - The company incurred a loss of 584 million CNY in the farming segment, which negatively impacted the net profit by 227 million CNY [2]. - The net profit margin for 2023 was 1.0%, down 1.0 percentage points year-on-year, with a net loss margin of -1.6% in Q4 2023 [5]. Future Projections - Revenue projections for 2024-2026 are estimated at 23.25 billion CNY, 24.27 billion CNY, and 25.22 billion CNY respectively, with net profits expected to be 410 million CNY, 490 million CNY, and 560 million CNY [6]. - The company plans to enhance brand investment and operational activities to support revenue growth in the coming years [6].