生产指标持续改善，畜禽成本稳步回落

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The report highlights continuous improvement in production indicators and a steady decline in livestock costs [1] - The company reported a revenue of 89.9 billion yuan in 2023, a year-on-year increase of 7.4%, but a net loss attributable to shareholders of 6.39 billion yuan, compared to a profit of 5.289 billion yuan in 2022 [2][6] - In Q1 2024, the company achieved a revenue of 21.84 billion yuan, a year-on-year growth of 9.4%, with a net loss of 1.236 billion yuan [2][6] - The company aims to ensure profitability as a primary goal, with the comprehensive cost of pig farming reduced to 15.2 yuan/kg in Q1 2024 [2][6] Summary by Sections Financial Performance - In 2023, the company had a total revenue of 89.9 billion yuan, with a net profit loss of 6.39 billion yuan [2][6] - The projected revenues for 2024, 2025, and 2026 are 112.27 billion yuan, 129.02 billion yuan, and 132.3 billion yuan respectively, with corresponding net profits expected to be 8.403 billion yuan, 17.53 billion yuan, and 15.362 billion yuan [6][7] - The gross margin is expected to improve significantly from 0.8% in 2023 to 15.2% in 2024 [6][7] Livestock Production - The company reported a pig output of 26.262 million heads in 2023, a year-on-year increase of 46.6% [2][6] - In Q1 2024, the pig output was 7.18 million heads, a year-on-year increase of 28.3% [2][6] - The company plans to produce 30-33 million pigs in 2024, focusing on stable production and cost control [2][6] Chicken Production - The company’s chicken output in 2023 was 1.183 billion birds, a year-on-year increase of 9.5% [2][6] - In Q1 2024, the chicken output was 267 million birds, with a revenue of 7.652 billion yuan, a slight decline of 1% year-on-year [2][6] - The comprehensive cost of chicken production was reduced to 12.8 yuan/kg in Q1 2024 [2][6] Market Outlook - The report indicates a shift in the pig market logic from capacity reduction to price reversal, with expectations for a new upward price cycle in 2024 [5][6] - The company is positioned as the second-largest pig farming enterprise and the largest yellow feather chicken farming enterprise in China, which is expected to lead to significant profit growth [5][6]