YISHENG(SZ:002458) Huachuang Securities·2024-04-20 16:31Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 14.62 CNY based on a projected PE of 13.8X for 2024 [1][9]. Core Insights - The company's Q1 2024 performance shows a recovery in profitability, with parent stock chick sales estimated at approximately 3 million sets at an average price of over 30 CNY per set, yielding a profit of about 30 million CNY. The sales of commercial chicks reached approximately 130 million birds at an average price of 3.6 CNY per bird, resulting in a profit of about 120 million CNY, despite a decline in sales volume due to weak stocking enthusiasm [1]. - The report highlights the significant fluctuations in chick prices during Q1, with a national average price of 3.32 CNY per bird, reflecting a year-on-year decrease of 21.14% but a quarter-on-quarter increase of 90%. The price dynamics are influenced by supply shortages and demand fluctuations in the market [1][9]. - The company is expected to maintain a sales scale of around 600 million commercial chicks in 2024, with a notable advantage in its proprietary white-feathered chicken varieties, which are anticipated to accelerate the replacement of other market segments [1]. Financial Summary - The company reported a revenue of 687 million CNY in Q1 2024, a year-on-year decrease of 24.75% but a quarter-on-quarter increase of 21.38%. The net profit attributable to the parent company was 109 million CNY, down 65.16% year-on-year but showing significant improvement from a net loss of 143 million CNY in Q4 2023 [9]. - Forecasts for the company's net profit from 2024 to 2026 are 1.171 billion CNY, 804 million CNY, and 529 million CNY, respectively, with corresponding growth rates of 116.6%, -31.3%, and -34.3% [10].