Wellhope(SH:603609) KAIYUAN SECURITIES·2024-04-01 16:00Investment Rating - The investment rating for the company is maintained as "Buy" [1][20]. Core Views - The report indicates that feed sales are steadily increasing, contributing to profits, and the upward cycle of pig and chicken markets is expected to improve profitability [1][20]. - The company has adjusted its profit forecasts for 2024-2025 and introduced a forecast for 2026, expecting net profits of 926 million, 1.246 billion, and 939 million yuan for 2024-2026 respectively, with corresponding EPS of 1.01, 1.36, and 1.02 yuan [20]. Financial Performance Summary - In 2023, the company achieved revenue of 35.97 billion yuan, a year-on-year increase of 9.63%, but reported a net loss of 457 million yuan, a year-on-year decrease of 189.13% [20][21]. - The feed business saw external sales of 4.3052 million tons in 2023, up 7.88% year-on-year, with a net profit of 90 yuan per ton [2][21]. - The meat poultry business generated revenue of 11.212 billion yuan in 2023, a year-on-year increase of 20.77%, but incurred a net loss of 320 million yuan [2][21]. Sales and Production Insights - The company plans to increase the proportion of large customers in the feed business, aiming for a total feed sales growth of over 10% year-on-year in 2024 [2][21]. - The slaughter capacity for white feather chickens exceeded 1.1 billion birds in 2023, with a slaughter volume of 810 million birds, expected to rise to 860 million in 2024 [2][21]. Financial Projections - The projected operating revenue for 2024 is 37.521 billion yuan, with a year-on-year growth of 4.3% [3]. - The projected net profit for 2024 is expected to be 926 million yuan, with an EPS of 1.01 yuan, and a PE ratio of 7.2 times [20][3].