Investment Rating - The investment rating for Longda Meat Foodstuff is maintained at OVERWEIGHT [7]. Core Views - Longda Meat Foodstuff's revenue for 2024 was RMB 10,990 million, with an attributable net profit of RMB 21.62 million, showing a year-on-year profit recovery of 101.41% despite a revenue decline of 17.49% [1][4]. - The company has implemented cost reduction and operational efficiency initiatives, which have led to improved gross margins and a turnaround in profits [1][2]. - The focus on high-margin prepared food products and the disposal of underperforming assets contributed to the positive profit trajectory [2][4]. Financial Performance Summary - In 2024, the food business revenue decreased by 14% year-on-year to RMB 1.9 billion, but its gross margin improved to 11.2%, up 1.11 percentage points [2]. - Slaughtering revenue fell by 6.6% year-on-year to RMB 9.0 billion, with a significant reduction in slaughter volume and hog sales, yet losses narrowed due to price recovery [2]. - For 1Q25, revenue was RMB 2.55 billion, with a net profit of RMB 4 million, indicating a year-on-year decline of 86% but a positive trend quarter-on-quarter [1][3]. Earnings Forecasts and Valuation - The 2025 and 2026 attributable net profit forecasts have been reduced by 30% and 13% respectively, now projected at RMB 146 million and RMB 212 million [4]. - A target price of RMB 6.34 has been set, reflecting a price-to-earnings ratio of 47x for 2025, which is above the industry average [4][8].