SHUANGHUI(SZ:000895) Huachuang Securities·2024-04-23 08:02Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 32 CNY, compared to the current price of 27.53 CNY [2][8]. Core Views - The company continues to face operational pressure, with Q1 2024 total revenue at 14.31 billion CNY, down 8.9% year-on-year, and net profit attributable to shareholders at 1.27 billion CNY, down 14.5% year-on-year. However, the net cash flow from operating activities improved significantly to 1.45 billion CNY from a negative 5.55 million CNY in the same period last year [2][8]. - The meat product business is under pressure due to high base effects, but the company has managed to increase profit per ton by 22% to 5,000 CNY/ton, achieving a record high for a single quarter. The operating profit for the meat product segment increased by 15.7% year-on-year to 1.89 billion CNY [2][8]. - The slaughtering and other businesses faced challenges due to low-price competition, resulting in a 16.5% year-on-year decline in revenue to 6.60 billion CNY, with operating profit down 68.5% to 96 million CNY [2][8]. - The company is focusing on high-quality development in the meat product segment and aims to stabilize profits in the slaughtering business while gradually improving the breeding business, which is currently facing losses [2][8]. Financial Summary - For 2023, total revenue is projected at 59.89 billion CNY, with a year-on-year decline of 4.3%. The net profit attributable to shareholders is expected to be 5.05 billion CNY, down 10.1% year-on-year. The earnings per share (EPS) for 2024 is forecasted at 1.58 CNY [2][12]. - The company’s current dividend yield stands at 5.3%, which remains attractive [2][8]. - The financial ratios indicate a price-to-earnings (P/E) ratio of 17 for 2024, with a projected P/B ratio of 4.5 [2][12].