Sunner(SZ:002299)2024-04-26 06:02Investment Rating - The report maintains an "Outperform" rating for the company [6]. Core Views - The company reported a decline in performance due to low chicken prices, but there is optimism for a cyclical recovery [6]. - The first quarter of 2024 saw a revenue of 4.21 billion yuan, a year-on-year decrease of 7.1%, and a net profit attributable to shareholders of -61.92 million yuan, marking a significant decline from the previous year's profit of 89.45 million yuan [6][7]. - The company is expected to benefit from a gradual increase in chicken prices throughout the year, leading to improved performance [6]. Summary by Sections Market Data - Closing price: 15.59 yuan - One-year high/low: 21.58/13.78 yuan - Price-to-book ratio: 1.9 - Dividend yield: 1.92% - Market capitalization: 19,104 million yuan [2]. Financial Data - As of March 31, 2024, the company had a net asset value per share of 8.25 yuan and a debt-to-asset ratio of 56.28% [3]. - Total shares: 1,243 million, with 1,225 million circulating A shares [3]. Revenue and Profit Forecast - Projected revenues for 2024-2026 are 22.49 billion, 24.72 billion, and 27.70 billion yuan respectively, with net profits of 2.19 billion, 2.09 billion, and 2.91 billion yuan [7][8]. - The company expects a recovery in chicken prices, which will positively impact future earnings [6]. Business Segments - Chicken business: Sales volume increased by 11% year-on-year to 294,000 tons in Q1 2024, but revenue decreased by 3.9% due to low prices [6]. - Food business: Processed meat sales grew by 11% year-on-year, with a focus on brand marketing and increased sales expenses [6]. Future Outlook - The report anticipates a gradual decline in chicken supply starting from the end of Q2 2024, which may lead to price increases and improved company performance [6].