ZHENGBANG TECHNOLOGY(002157) 华鑫证券·2024-08-15 05:30Investment Rating - The report assigns an "Overweight" rating to Zhengbang Technology (002157 SZ) for the first time [2] Core Views - Zhengbang Technology's mid-2024 performance shows significant reduction in losses, with net profit attributable to parent company expected to be -120 to -150 million yuan, a year-on-year decrease of 92 48%-93 98% [4] - The company's turnaround is supported by Shuangbaotai Group's advanced technology and resources in the agricultural and animal husbandry industry [4] - Zhengbang Technology's operating costs decreased by 57 08% year-on-year in Q1 2024, mainly due to Shuangbaotai Group's cost control management [4] - The company's debt-to-asset ratio improved significantly, dropping from 156 99% in Q1 2023 to 50 43% in Q1 2024 [7] Financial Performance - Zhengbang Technology's 2024-2026 revenue is forecasted to be 10 288 billion yuan, 13 548 billion yuan, and 15 076 billion yuan respectively [8] - EPS for 2024-2026 is predicted to be 0 11 yuan, 0 17 yuan, and 0 15 yuan respectively [8] - The current stock price corresponds to PE ratios of 25 3x, 16 1x, and 18 4x for 2024-2026 [8] Business Operations - In H1 2024, Zhengbang Technology sold 1 5892 million hogs, a year-on-year decrease of 46 83%, with sales revenue of 1 738 billion yuan, down 39 36% year-on-year [5] - The company's hog production management has improved, with costs decreasing and capacity utilization increasing [4] - Zhengbang Technology's breeding sow inventory was approximately 196,000 at the end of Q1 2024 [5] Market Position - Zhengbang Technology's total market capitalization is 25 8 billion yuan, with a current stock price of 2 78 yuan [2] - The company's 52-week price range is 2 32-3 49 yuan, with an average daily trading volume of 114 97 million yuan [2]