YISHENG(SZ:002458) EBSCN·2024-04-22 02:32Investment Rating - The report maintains a "Buy" rating for the company, indicating a favorable outlook for investment over the next 6-12 months with expected returns exceeding 15% compared to market benchmarks [10][24]. Core Insights - The company's performance is benefiting from a recovery in chick prices, with a notable improvement in sales and profitability in Q1 2024 despite a year-on-year decline in sales volume and average price [1][17]. - The company has strong competitive advantages in the breeding of white feather broilers, with leading production performance in both parent and commercial stock [1]. - The forecast for 2024 indicates a significant increase in sales volume for both commercial broiler chicks and breeding pigs, driven by the release of production capacity [18][19]. Summary by Sections Sales Performance - In Q1 2024, the company sold 130 million white feather broiler chicks, a decrease of 13.5% year-on-year and 8.2% quarter-on-quarter, with an average selling price of 4.2 yuan per chick, down 19.5% year-on-year but up 42.3% quarter-on-quarter [1]. - The sales of the company's proprietary breed, Yisheng 909, reached 22.76 million chicks in Q1 2024, a slight decrease of 2.6% year-on-year but a significant increase of 66.7% quarter-on-quarter [18]. Financial Performance - The company reported Q1 2024 revenue of 687 million yuan, a year-on-year decline of 24.75% but a quarter-on-quarter increase of 21.4%, with a net profit attributable to shareholders of 110 million yuan, down 65.16% year-on-year but a significant recovery from previous losses [17]. - The forecast for net profit attributable to shareholders for 2024 and 2025 has been adjusted to 616 million yuan and 640 million yuan, respectively, reflecting a decrease of 65.41% and 57.92% from previous estimates [10]. Market Position - The company is positioned to benefit from a tightening supply of broiler chicks in the domestic market, which has led to a recovery in chick prices [1]. - The overall market for commercial broiler chicks is expected to see a volume of 600 million chicks in 2024, with projections of 1 billion chicks by 2025 [18].