鸡肉价格偏弱运行，短期业绩表现承压

Investment Rating - The investment rating for the company is "Buy" [3][6][22]. Core Views - The chicken prices are running weakly, leading to short-term performance pressure. In 2023, the company achieved operating revenue of 18.487 billion yuan, a year-on-year increase of 9.93%, and a net profit attributable to shareholders of 664 million yuan, a year-on-year increase of 61.66% [2][9][22]. - The performance began to be pressured from Q4 2023 due to declining chicken prices, with a net profit of -75 million yuan in Q4 2023, a year-on-year decrease of 134.43%. In Q1 2024, operating revenue decreased by 7.10% to 4.215 billion yuan, and net profit decreased by 169.23% to -62 million yuan, primarily due to a 13% year-on-year drop in chicken prices [2][9][22]. - The poultry breeding business generated revenue of 10.517 billion yuan in 2023, a year-on-year increase of 0.71%, with a gross margin of 6.32%. The food processing business achieved revenue of 6.394 billion yuan, a year-on-year increase of 28.14%, with a gross margin of 18.67% [2][9][22]. Summary by Sections Financial Performance - In 2023, the company reported operating revenue of 18.487 billion yuan, a 9.93% increase year-on-year, and a net profit of 664 million yuan, up 61.66% year-on-year. The revenue growth was attributed to a recovery in the white chicken market and cost reduction measures [2][9][22]. - For Q1 2024, the company experienced a decline in revenue and profit due to weak chicken prices, with revenue down 7.10% to 4.215 billion yuan and a net loss of 62 million yuan [2][9][22]. Business Segments - The poultry breeding segment generated 10.517 billion yuan in revenue in 2023, with a gross margin of 6.32%. The food processing segment saw revenue of 6.394 billion yuan, with a gross margin of 18.67% [2][9][22]. - The company is focusing on enhancing its self-researched breeding performance and expanding its B-end and C-end customer base, which contributed positively to its food processing revenue [2][9][22]. Market Outlook - As of April 7, 2024, the domestic grandparent chicken inventory was 1.97 million sets, a year-on-year increase of 16%. The supply of white feather chickens is expected to remain relatively abundant in the medium to long term, but a potential recovery in pork prices may positively impact the white feather chicken market [2][9][22]. - The company is projected to maintain a "Buy" rating, with expected net profits of 770 million yuan, 1.23 billion yuan, and 960 million yuan for 2024, 2025, and 2026, respectively [3][22].