成本改善明显，产能稳步扩张

Investment Rating - The report maintains an "Add" rating for the company, indicating a positive outlook for investment in the stock [1]. Core Insights - The company, as a leading player in the pig farming sector, demonstrates significant cost advantages and steady growth in output. The expected EPS for 2024-2026 is projected at 2.17, 3.55, and 3.77 CNY, with corresponding PE ratios of 20.1, 12.3, and 11.6 times based on the closing price on April 30, 2024 [1][2]. Financial Performance - In 2023, the company achieved a revenue of 110.86 billion CNY, a year-on-year decrease of 11.19%, and a net profit attributable to shareholders of -4.26 billion CNY, marking a shift from profit to loss. For Q1 2024, revenue was 26.27 billion CNY, up 8.57% year-on-year, but the net profit was -2.38 billion CNY, down 98.56% year-on-year [2][3]. - The company’s pig output in 2023 was 63.82 million heads, an increase of 4.27% year-on-year, with a sales price of approximately 14.5 CNY/kg, down 18.8% year-on-year. In Q1 2024, the output was 16.01 million heads, up 15.64% year-on-year, with a sales price of about 14.0 CNY/kg, down 4.8% year-on-year [2][3]. Cost Management - The company has successfully reduced its total cost to around 15 CNY/kg in 2023, down from 15.7 CNY/kg in 2022. In Q1 2024, costs increased slightly due to external factors but improved to 15.1 CNY/kg by March. The average cost target for 2024 is set at 14.5 CNY/kg, with expected contributions from feed prices and management improvements [2][3]. Production Capacity and Efficiency - As of Q1 2024, the company’s fixed assets were valued at 110.79 billion CNY, with a slight decrease of 1.22% quarter-on-quarter. The breeding sow inventory is expected to reach 3.18-3.20 million heads by the end of April 2024, with an annual survival rate of 85% and an average daily weight gain of approximately 800g. The target for total output in 2024 is set between 66-72 million heads [3][4]. Slaughtering Segment - In 2023, the company slaughtered 13.26 million pigs, an increase of 80% year-on-year, generating revenue of 21.86 billion CNY, up 48.54% year-on-year. The utilization rate of slaughtering capacity improved from 25% in 2022 to 46% in 2023. In Q1 2024, the company slaughtered 2.94 million pigs, up 18% year-on-year [3][4].