Huatong Meat(002840) 西南证券·2024-09-06 08:10Investment Rating - The report maintains a "Buy" rating for the company [1][2] Core Views - The company reported a revenue of 4.165 billion yuan in H1 2024, a year-on-year increase of 1.14%, with a net profit loss of 119 million yuan, which represents a 66.59% reduction in losses compared to the previous year [1] - In Q2 2024, the company achieved a revenue of 2.169 billion yuan, a year-on-year increase of 1.72%, and a net profit of 38.24 million yuan, marking a 115.19% increase compared to the same period last year [1] - The company sold 1.3364 million pigs in H1 2024, a 15.9% increase year-on-year, and the overall pig slaughtering volume reached 2.1128 million pigs, generating 3.934 billion yuan in revenue from slaughtering and meat processing, a 4.06% increase year-on-year [1][2] - The report highlights a continuous decline in breeding costs and an increase in production efficiency, contributing to improved profitability [2] Summary by Relevant Sections Financial Performance - The company’s total revenue for 2024 is projected to be 8.578 billion yuan, with a growth rate of 54.69% [3] - The net profit for 2024 is expected to be 657 million yuan, reflecting a growth rate of 208.69% [3] - The earnings per share (EPS) for 2024 is projected at 1.06 yuan, with a dynamic PE ratio of 10 times [3] Industry Insights - The national pig output decreased by 3.1% year-on-year, with a total of 36.395 million pigs slaughtered in the first half of 2024 [1] - The price of pigs has shown a steady increase from 15 yuan/kg in April to 20 yuan/kg in August 2024 due to capacity reduction in the industry [1] - The company is expanding its breeding capacity through a light-asset model and has a current fattening capacity of 3.1 to 3.3 million pigs [2]