Wellhope(603609) 中国银河·2024-03-29 16:00Investment Rating - The report maintains a "Recommended" rating for the company [1]. Core Views - The company reported a revenue of 35.97 billion yuan in 2023, representing a year-on-year increase of 9.63%. However, the net profit attributable to shareholders was -0.46 billion yuan, a significant decline from a profit of 0.51 billion yuan in the previous year [1][3]. - The decline in performance is attributed to low downstream breeding industry sentiment, slower-than-expected recovery in consumer demand, investment losses, and asset impairment provisions [1]. - The company's feed sales increased by nearly 8% year-on-year, with notable growth in poultry feed. The feed business generated revenue of 16.47 billion yuan, up 5.29% year-on-year, with a gross margin of 8.42% [1][3]. - The poultry segment saw a revenue increase of 20.77% year-on-year, while the pig farming segment's revenue rose by 25.19% year-on-year, despite a decline in gross margin [1][3]. Financial Summary - The company forecasts revenues of 39.19 billion yuan, 43.40 billion yuan, and 48.39 billion yuan for 2024, 2025, and 2026, respectively, with growth rates of 8.96%, 10.73%, and 11.49% [3]. - The net profit attributable to shareholders is projected to recover to 0.48 billion yuan in 2024, 0.99 billion yuan in 2025, and 1.32 billion yuan in 2026, with corresponding EPS of 0.53 yuan, 1.08 yuan, and 1.43 yuan [3][11]. - The report indicates a PE ratio of 14 for 2024, 7 for 2025, and 5 for 2026, reflecting a potential improvement in profitability [11].