Investment Rating - The report maintains a "Buy" rating for the company, with expected net profits for 2025, 2026, and 2027 projected at 51.88 billion, 54.58 billion, and 56.88 billion respectively, reflecting year-on-year growth of +3.98%, +5.21%, and +4.21% [4] Core Insights - In 2024, the company achieved total revenue of 597.15 billion (down 0.64%) and a net profit attributable to shareholders of 49.89 billion (down 1.26%), with a cash dividend of 0.75 per share [1] - The company reported a recovery in sales volume in Q4 2024, with total external sales of meat products reaching 83.12 million tons, an increase of 9.47% year-on-year [2] - The gross profit margin for the company was 17.69%, an increase of 0.64 percentage points year-on-year, driven by improvements in the gross profit margins of packaged meat and poultry products [3] Summary by Sections Financial Performance - In Q4 2024, the company achieved total revenue of 156.03 billion (up 13.46%) and a net profit of 11.85 billion (up 63.27%) [1] - The total external sales volume of meat products for 2024 was 318 million tons, a decrease of 1.67% year-on-year, primarily due to declines in packaged meat and fresh pork products [2] - The company’s revenue from packaged meat products, fresh pork, and other products for 2024 was 247.88 billion, 269.30 billion, and 79.97 billion respectively, with year-on-year changes of -6.16%, +1.12%, and +13.42% [2] Profitability - The profit margin for the packaged meat segment increased by 14% to 4699 yuan per ton, while the profit margin for fresh pork decreased by 32.61% to 324 yuan per ton [3] - The company’s net profit for 2024 was 49.89 billion, with a year-on-year decrease of 1.26% [1] Growth Prospects - The company plans to expand its direct sales and distribution network, with direct sales revenue increasing by 6.11% to 143.81 billion and the number of distributors growing by 19.83% to 21,282 [2] - Future net profit projections for 2025, 2026, and 2027 indicate a steady growth trajectory, with corresponding P/E ratios of 18, 17, and 16 [4]

Core Viewpoint - The company reported stable business performance in 2024 despite complex macroeconomic conditions, achieving total revenue of 59.715 billion yuan and a net profit of 4.989 billion yuan, with a slight decrease in net profit year-on-year [1][2]. Revenue and Profit Summary - Total revenue for 2024 reached 59.715 billion yuan, with a profit margin of 66.59 billion yuan, reflecting a year-on-year growth of 0.21% [1]. - The net profit attributable to shareholders was 4.989 billion yuan, showing a year-on-year decrease of 1.26% [1]. Business Segment Performance - The slaughtering business generated revenue of 30.334 billion yuan, accounting for 50.93% of total revenue, while the meat products segment contributed 24.788 billion yuan, representing 41.62% of total revenue [2]. - Despite a slight decline in revenue, the gross profit margin for the meat products segment increased by 4.01 percentage points [2]. - Other business segments reported revenue of 9.960 billion yuan, with a year-on-year growth of 10.44% and a gross profit margin increase of 2.11 percentage points [2]. Channel Development - The company had 21,282 distributors by the end of 2024, marking a 19.83% increase from the beginning of the year [1][3]. - The revenue share from the southern region of the Yangtze River increased to 21.786 billion yuan, accounting for 36.58% of total revenue, a growth of 2.27% compared to 2023 [3]. Market Trends and Opportunities - The concentration of the pig slaughtering industry in China reached 48.1% in 2024, indicating a trend towards larger-scale operations and improved efficiency [2][4]. - The increasing demand for pork, which remains the primary source of animal protein in the Chinese diet, is expected to support the company's stable growth [4]. Quality Control and Supply Chain Management - The company has established over 30 modern meat processing bases across 18 provinces, ensuring a stable supply of raw materials [5]. - The implementation of quality management systems such as ISO9001 and HACCP has strengthened the company's product quality control [5]. - A digital traceability system has been developed to enhance supply chain management, ensuring product quality and food safety [5]. Research and Development - In 2024, the company invested 937 million yuan in R&D, representing 1.57% of total revenue, with projects aimed at enhancing product quality and production efficiency [6]. - Completed R&D projects include key technologies for improving the quality of Chinese cuisine and precise preservation of fresh meat [6]. Shareholder Returns - The company plans to distribute a cash dividend of 7.50 yuan per 10 shares, totaling 2.598 billion yuan, which constitutes 64.8% of the distributable profits [1][6].

Core Insights - The company reported a total revenue of 59.715 billion yuan for 2024, a year-on-year decrease of 0.64%, with a net profit attributable to shareholders of 4.989 billion yuan, down 1.26% from the previous year [1] - In Q4 2024, total revenue reached 15.603 billion yuan, representing a year-on-year increase of 13.46%, while net profit attributable to shareholders was 1.185 billion yuan, up 63.27% year-on-year [1] Meat Products Segment - The revenue from the meat products business was 24.79 billion yuan in 2024, a decline of 6.2% year-on-year, with sales volume down 6.1% due to weak terminal demand [1] - The profit per ton for meat products reached 4,469 yuan, an increase of 13.8% year-on-year, marking a historical high [1] - In Q4 2024, revenue from meat products was 5.59 billion yuan, a slight decrease of 0.4% year-on-year, with the decline significantly narrowing due to a low base effect from Q4 2023 [1] - For 2025, the company plans to implement a "two adjustments and one control" operational strategy, focusing on sales organization reform and market specialization [1] Slaughtering and Breeding Business - The revenue from the slaughtering business was 30.33 billion yuan in 2024, down 2.1% year-on-year, with external transaction revenue at 26.93 billion yuan, up 1.1% [2] - The company slaughtered approximately 10.29 million pigs in 2024, a decrease of 19% year-on-year, with fresh meat sales down 4.4% [2] - In Q4 2024, the slaughtering business achieved revenue of 8.5 billion yuan, a year-on-year increase of 22%, driven by lower prices and increased slaughter volume [2] - The company aims to enhance the breeding and poultry sectors in 2025 to improve operational quality and profitability [2] Dividend Policy - The company plans to distribute a cash dividend of 0.75 yuan per share for the year, in addition to a mid-term dividend of 0.66 yuan per share, resulting in an annual dividend payout ratio of approximately 98% [2] Profit Forecast - The company adjusted its profit forecasts for 2025-2027, expecting revenues of 62 billion, 64.1 billion, and 66 billion yuan, representing year-on-year growth of 3.9%, 3.4%, and 2.9% respectively [3] - The net profit attributable to shareholders is projected to be 5.21 billion, 5.49 billion, and 5.72 billion yuan for the same years, with year-on-year growth rates of 4.4%, 5.4%, and 4.3% [3] - The corresponding price-to-earnings ratios are estimated to be 18x, 17x, and 16x, maintaining a "buy" rating [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's 2024 annual report shows that total revenue is 59.715 billion yuan, a slight decrease of 0.64% year-on-year, while net profit attributable to shareholders is 4.989 billion yuan, down 1.26% year-on-year. In Q4 2024, total revenue reached 15.603 billion yuan, an increase of 13.46% year-on-year, with net profit of 1.185 billion yuan, up 63.27% year-on-year [9] - The demand for meat products remains weak, leading to a decline in sales volume, but the profit per ton has reached a historical high of 4,469 yuan, an increase of 13.8% year-on-year. The company plans to enhance its sales structure and deepen market operations to drive sales growth in 2025 [9] - The company maintains a high dividend payout, proposing a cash dividend of 0.75 yuan per share, resulting in an annual dividend rate of approximately 98%, with a dividend yield exceeding 5% based on the current stock price [9] Financial Summary - For 2023A, total revenue was 60.097 billion yuan, with a year-on-year decrease of 4.20%. The net profit attributable to shareholders was 5.053 billion yuan, down 10.11% year-on-year. The latest diluted EPS for 2023A was 1.46 yuan, with a P/E ratio of 18.27 [1] - The company forecasts revenues of 62.043 billion yuan in 2025, 64.130 billion yuan in 2026, and 66.014 billion yuan in 2027, with year-on-year growth rates of 3.9%, 3.36%, and 2.94% respectively. The net profit attributable to shareholders is expected to be 5.210 billion yuan in 2025, 5.490 billion yuan in 2026, and 5.723 billion yuan in 2027, with corresponding growth rates of 4.44%, 5.37%, and 4.25% [9][10]

Core Viewpoint - The company aims to enhance the sales of its meat products by implementing a series of strategic measures by 2025, focusing on market specialization, customer network expansion, and product innovation. Group 1: Sales Strategy - The company plans to reform its sales organization to promote specialized market operations by establishing dedicated sales teams for different product categories [1] - It will build a comprehensive customer network to expand its customer base through targeted operations [1] - The company intends to increase the number of sales outlets and improve terminal operation quality to boost sales [1] - Market research will be strengthened to align with diverse consumer demands, including high-end, mass, youth, and children's segments [1] - The company will implement refined management practices across various sales channels to enhance operational efficiency [1] - Increased market investment will be made to support customers and drive sales [1] - Digital tools will be utilized to empower market sales and support refined management [1] - The company will enhance team motivation through effective incentive programs to boost workforce vitality [1] Group 2: New Product Development - The company plans to develop new high-temperature products focusing on health concepts such as reduced salt, fat, and sugar [2] - For low-temperature products, the focus will be on high-end Western-style offerings [2] - New snack products will be developed with innovative packaging to cater to various consumption scenarios [2] - Frozen products will aim for higher taste restoration and broader regional adaptability [2] - High-cost performance products will be created to compete in specific market segments [2] - Regional products will be researched to meet localized consumer preferences [2]

Financial Performance - In 2024, the company achieved total revenue of CNY 59.7 billion, a decrease of 0.64% year-on-year [4] - The total profit reached CNY 6.659 billion, an increase of 0.21% year-on-year [4] - The net profit attributable to shareholders was CNY 4.989 billion, down 1.26% year-on-year [4] - Fresh products revenue was CNY 30.33 billion, down 2.1% year-on-year, with operating profit of CNY 440 million, down 35.6% [4] - Meat products revenue was CNY 24.79 billion, down 6.2%, but operating profit increased by 6.8% to CNY 6.65 billion [4] - Other business segments generated CNY 9.96 billion in revenue, up 10.4%, with operating profit improving [4] Strategic Initiatives - The company is implementing a "Four Modernizations" strategy and focusing on "two adjustments and one control" to enhance operational efficiency [4] - A new board of directors has been established, emphasizing marketing innovation and digital transformation [5] - The company plans to expand its network and improve sales through targeted marketing and customer engagement [6][8] Sales and Market Development - In 2025, the company aims to enhance meat product sales through specialized sales teams and a comprehensive customer network [6][8] - The company will focus on market research to align products with consumer demands across various demographics [6][8] - New product development will target health-conscious consumers with reduced salt, fat, and sugar options [12][15] Production and Operations - The company anticipates a significant increase in pig production in 2025, with improved management and cost control measures [16] - The poultry sector is expected to achieve profitability through enhanced disease prevention and production management [16] - The company plans to maintain low inventory levels for frozen products while scaling up fresh product offerings [18] Shareholder Returns - The company will continue its stable and sustainable dividend policy, ensuring returns to shareholders while supporting long-term growth [17]

Core Viewpoint - The company reported a resilient performance in its 2024 annual report despite a decline in revenue and net profit, showcasing strong operational capabilities and strategic foresight in a challenging market environment [1][2][10]. Financial Performance - In 2024, the company achieved operating revenue of 59.561 billion yuan, a year-on-year decrease of 0.64%, and a net profit attributable to shareholders of 4.989 billion yuan, down 1.26% year-on-year [2][4]. - The company's cash flow from operating activities reached 8.416 billion yuan, a significant increase of 148.42% compared to the previous year, indicating improved profitability and cash return [4][6]. - The profit margin per ton of meat products reached a record high of 4,700 yuan in 2024 [8]. Business Segments - The slaughtering and meat processing sectors remain the company's two main pillars, with meat products generating 24.788 billion yuan in revenue (41.62% of total revenue) and the slaughtering sector contributing 30.334 billion yuan (50.93% of total revenue) [4][6]. - The gross margin for the meat products segment increased by 4.01% to 35.67%, with operating profit rising by 6.8% to 6.65 billion yuan, marking five consecutive years of growth [4][5]. Strategic Initiatives - The company has effectively implemented its "two adjustments and one control" strategy, focusing on adjusting product structure, pricing, and cost control, which has enhanced its resilience against market fluctuations [5][10]. - The company has diversified its product offerings, including new products that cater to evolving consumer preferences, and invested 203 million yuan in research and development, a 1.79% increase year-on-year [5][6]. Market Position and Future Outlook - The company has expanded its distribution network, increasing the number of distributors by 19.83% to 21,282, which supports sales growth [6][10]. - Looking ahead to 2025, the company anticipates continued low raw material costs for meat products and plans to increase market investment and introduce more cost-effective products, although it expects a slight decrease in profit per ton compared to 2024 [10].

Investment Rating - The investment rating for the company is "Outperform" (Maintain) [1] Core Views - The company's performance in Q4 2024 showed significant improvement, with a quarterly revenue of 15.6 billion yuan, up 13.5% year-on-year, and a net profit of 1.18 billion yuan, up 63.3% year-on-year. The overall revenue for 2024 was 59.715 billion yuan, down 0.6% year-on-year, and the net profit was 4.989 billion yuan, down 1.3% year-on-year [3][4] - The company maintains a high dividend payout ratio, with a total dividend of 4.885 billion yuan for 2024, representing 98% of the net profit, indicating a stable value investment [3][4] Financial Performance Summary - In 2024, the company achieved total revenue of 597.15 billion yuan, a decrease of 0.6% year-on-year, and a net profit of 49.89 billion yuan, a decrease of 1.3% year-on-year [3][6] - For Q4 2024, the company reported a revenue of 156.03 billion yuan, an increase of 13.5% year-on-year, and a net profit of 11.85 billion yuan, an increase of 63.3% year-on-year [3][4] - The company forecasts net profits of 52.4 billion yuan, 55.1 billion yuan, and 58.2 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 1.51, 1.59, and 1.68 yuan [3][6] Business Segment Performance - The meat product segment generated revenue of 55.9 billion yuan in Q4 2024, a decrease of 0.4% year-on-year, but the operating profit increased by 7.4% due to effective cost control [4] - The slaughtering segment saw revenue of 85.1 billion yuan in Q4 2024, an increase of 21.7% year-on-year, with operating profit rising by 153.0% [5] - The breeding segment turned profitable in Q4 2024, with a revenue increase of 15.1% year-on-year, indicating potential for growth in 2025 [5] Valuation Metrics - The current stock price is 26.64 yuan, with a market capitalization of 92.299 billion yuan [1] - The price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are projected to be 17.6, 16.8, and 15.9 respectively [3][6] - The company maintains a high return on equity (ROE) of 23.7% for 2024, projected to decline to 15.5% by 2027 [6][9]

| | 2024年 | 2023 年 | 本年比上年 | 2022年 | | --- | --- | --- | --- | --- | | | | | 增减 | | | 营业收入(元) | 59,561,224,544.07 | 59,892,963,176.51 | -0.55% | 62,575,635,903.48 | | 归属于上市公司股东的净利 润(元) | 4,989,048,074.60 | 5,052,741,772.33 | -1.26% | 5,620,885,670.80 | | 归属于上市公司股东的扣除 非经常性损益的净利润 | 4,812,760,810.76 | 4,732,071,610.46 | 1.71% | 5,216,721,795.58 | | (元) | | | | | | 经营活动产生的现金流量净 | 8,415,760,882.42 | 3,387,718,636.44 | 148.42% | 7.565.466.114.96 | | 额(元) | | | | | | 基本每股收益(元/股) | 1.4400 | 1.4584 | -1.26% | 1.6223 ...

Core Viewpoint - The annual report of Shuanghui Development for 2024 shows stable performance with a revenue of 59.561 billion yuan and a net profit of 4.989 billion yuan, marking the first report under the leadership of the new chairman, Wan Hongwei, who emphasizes innovation in the company's traditional strategies [1][2]. Financial Performance - Shuanghui Development reported a revenue of 59.561 billion yuan, a slight decrease of 0.55% year-on-year, while the total profit increased by 0.21% to 6.659 billion yuan. The net profit decreased by 1.26% compared to the previous year [2]. - The decline in revenue was attributed to lower sales of packaged meat products and fresh pork, as well as low prices for poultry products, with total meat product sales volume at 3.18 million tons, down 1.67% year-on-year [2]. Strategic Direction - The company is pursuing a strategy of "industrialization, diversification, internationalization, and digitalization" to innovate while maintaining its core values. Wan Hongwei plans to focus on cultural and management aspects to ensure a smooth transition [2][4]. - In 2025, Shuanghui plans to implement sales organization reforms in its meat product business, focusing on specialized marketing teams and enhancing product quality and innovation [5]. Market Development - Shuanghui aims to strengthen market development in its slaughtering business and expand its customer base, leveraging its brand advantages and enhancing its market share [6]. - The company reported a significant increase in its distribution network, with over 1 million outlets and a 19.83% increase in the number of distributors [4]. Digitalization and Young Marketing - The company is accelerating its digital transformation, planning to invest approximately 1.5 billion yuan in automation and digital upgrades to enhance operational efficiency [7]. - Shuanghui is also focusing on marketing innovations aimed at younger consumers, intending to create a more vibrant and relatable brand image [7][8]. Organizational Adjustments - To optimize its marketing system and strengthen digital initiatives, Shuanghui has restructured its internal management, consolidating various departments to enhance efficiency [8]. - The company emphasizes the importance of safety management and sustainable development, aiming to improve its ESG governance levels [8].