WENS FOODSTUFF GROUP CO.(SZ:300498) Donghai Securities·2024-04-25 01:00Investment Rating - The report maintains a "Buy" rating for the company due to significant developments [2] Core Insights - The company is a leading player in pig and yellow feather chicken farming, with steady growth in output and high production performance. As pig and chicken prices gradually improve, profitability is expected to enhance quarter by quarter. The profit forecasts for 2023-2025 have been adjusted, with expected net profits of -6.33 billion, 5.47 billion, and 17.99 billion yuan respectively, corresponding to EPS of -0.95, 0.82, and 2.70 yuan, with current stock prices reflecting P/E ratios of -/23/7 times [5] Summary by Sections Sales Performance - In March 2024, the company sold 2.6205 million pigs, a month-on-month increase of 36.34% and a year-on-year increase of 26.42%. Revenue reached 4.727 billion yuan, up 41.61% month-on-month and 26.02% year-on-year. The average selling price was 14.73 yuan/kg, with a slight increase in average weight per pig [4] - For Q1 2024, the company sold 7.18 million pigs, a year-on-year increase of 28.3%, with an average selling price of 14.3 yuan/kg, down 4% year-on-year [4] Cost and Production - The comprehensive cost of pig farming in February 2024 was approximately 15.6 yuan/kg, showing a decrease from January. The company aims for a comprehensive cost of 15-15.6 yuan/kg for 2024, with a target output of 30-33 million pigs [4] - In March 2024, the company sold 97.596 million chickens, a month-on-month increase of 40.02% and a year-on-year increase of 1.77%. Revenue was 2.785 billion yuan, up 33.77% month-on-month but down 2.79% year-on-year [4] Financial Health - The company's debt structure is reasonable, with long-term debt accounting for about 55% and short-term debt for 45%, indicating low short-term repayment pressure. As of February 2024, the company had over 10 billion yuan in available funds, with more than 8 billion yuan being unrestricted [4]