SHUANGHUI(SZ:000895) Guoyuan Securities·2024-04-24 09:00Investment Rating - The report maintains an "Accumulate" rating for the company [2]. Core Views - The company reported a total revenue of 14.308 billion yuan in Q1 2024, a decrease of 8.92% year-on-year, with a net profit attributable to shareholders of 1.272 billion yuan, down 14.54% [3]. - The gross margin improved by 2.13 percentage points year-on-year to 19.38% in Q1 2024, driven by an upgrade in the meat product structure [3]. - The company is accelerating the upgrade of meat products and expanding its sales network, which is expected to support steady growth in meat product sales [4]. - The forecasted net profits for 2024, 2025, and 2026 are 5.334 billion yuan, 5.641 billion yuan, and 5.941 billion yuan, respectively, reflecting year-on-year growth rates of 5.57%, 5.76%, and 5.32% [4]. Summary by Sections Financial Performance - In Q1 2024, the total external sales volume of meat was 780,900 tons, a decrease of 4.43% year-on-year [3]. - The company's selling and administrative expense ratios were 3.39% and 2.20%, respectively, with increases of 0.29 and 0.44 percentage points year-on-year [3]. - The net profit margin for Q1 2024 was 8.91%, down 0.59 percentage points year-on-year, primarily due to increased financial expenses and income tax rates [3]. Product and Market Strategy - The company is focusing on launching new high-margin products such as light chicken sausages and energy sausages, which are expected to enhance the profitability of packaged meat products [4]. - The company has over 1 million sales outlets in China and is actively expanding its network to support sales growth [4]. Earnings Forecast - The projected earnings per share for 2024, 2025, and 2026 are 1.54 yuan, 1.63 yuan, and 1.71 yuan, respectively [5]. - The price-to-earnings ratios for 2024, 2025, and 2026 are estimated to be 18, 17, and 16 times, respectively, based on the market capitalization of 94.2 billion yuan [4].