LONGDA(002726) 华鑫证券·2024-07-14 06:00Investment Rating - The report maintains a "Buy" rating for the company Longda Meishi (002726.SZ) [3] Core Views - The company is expected to turn losses into profits due to the recovery in pig prices and continuous optimization of its business structure [3] - The traditional business segment is showing improved profitability, and the prepared food segment is progressing well [3] Summary by Relevant Sections Company Events - On July 12, 2024, Longda Meishi released its half-year performance forecast for 2024, indicating a turnaround in profitability [3] Financial Data - Current stock price: 6.25 CNY - Total market capitalization: 6.7 billion CNY - Estimated net profit for the first half of 2024: 55-65 million CNY, compared to a loss of 624 million CNY in the same period of 2023 [3] - Estimated net profit for Q2 2024: 25-35 million CNY, compared to a loss of 646 million CNY in Q2 2023 [3] Profitability Forecast - The company is expected to achieve significant profit growth in the coming years, with projected earnings per share (EPS) of 0.09 CNY in 2024, 0.20 CNY in 2025, and 0.29 CNY in 2026 [5] - The return on equity (ROE) is projected to improve from -92.8% in 2023 to 5.6% in 2024 and further to 13.6% by 2026 [5] Revenue and Growth Rates - Main revenue forecast for 2024: 15.144 billion CNY, with a growth rate of 13.7% [5] - The company anticipates a recovery in profitability driven by the optimization of its breeding and slaughtering segments, alongside the development of its prepared food business [3][5]