Wellhope(603609) 海通证券·2024-04-10 16:00Investment Rating - The report maintains an "Outperform the Market" rating for the company [21][18]. Core Views - The company achieved a revenue of 35.97 billion yuan in 2023, representing a year-on-year increase of 9.63%. However, it reported a net loss attributable to shareholders of 0.46 billion yuan, compared to a profit of 0.51 billion yuan in the previous year [19][22]. - The feed business showed resilience with a sales volume of 4.3052 million tons in 2023, up 7.88% year-on-year, despite a challenging market environment for livestock prices [8][19]. - The company is focusing on managing risks and transitioning its business model from a channel advantage to a dual approach of channel and direct sales, which has led to a significant increase in bulk feed sales [8][9]. Financial Performance and Forecast - The financial forecast indicates that the company expects revenues to grow to 37.99 billion yuan in 2024, 42.41 billion yuan in 2025, and 47.15 billion yuan in 2026 [22][24]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.64 yuan, 0.76 yuan, and 1.12 yuan, respectively [21][22]. - The gross margin is expected to improve from 4.0% in 2023 to 6.6% by 2026, reflecting better cost management and operational efficiency [22][24]. Business Segment Analysis - The feed business is projected to generate revenues of 16.47 billion yuan in 2023, with a gross margin of 8.4% [24]. - The poultry segment is expected to see revenue growth, with a focus on increasing production capacity and improving profitability as market conditions recover [20][21]. - The pig farming segment is anticipated to recover, with a projected revenue of 2.576 billion yuan in 2023, although it faced challenges in profitability due to market conditions [24][21].