Wellhope(SH:603609) Huachuang Securities·2024-04-02 16:00Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation of significant outperformance relative to the benchmark index in the next 3-6 months [20]. Core Insights - The company is expected to experience growth in its feed business, with a projected increase in external sales by over 10% in 2024, driven by improved market conditions and operational efficiencies [20]. - The poultry business is anticipated to recover in profitability in 2024, benefiting from a rebound in animal protein prices and increased slaughter volumes [20]. - The target price for the company's stock is set at 12.82 CNY, based on a valuation of 10.5 times the projected earnings for 2025 [20]. Financial Summary - Total revenue for 2023 is reported at 35,970 million CNY, reflecting a year-on-year growth of 9.6% [40]. - The company recorded a net loss attributable to shareholders of 457 million CNY in 2023, a significant decline compared to the previous year [40]. - Forecasted net profits for 2024, 2025, and 2026 are 4,860 million CNY, 11,290 million CNY, and 10,620 million CNY respectively, indicating substantial growth rates of 206.4% and 130.1% for the first two years [20].