SHUANGHUI(000895) 开源证券·2024-11-01 13:52Investment Rating - The investment rating for the company is "Outperform" (Maintain) [2] Core Views - The company's Q3 2024 performance showed significant improvement, with a quarterly revenue of 164.1 billion yuan, up 4.1% year-on-year, and a net profit of 15.08 billion yuan, up 1.2% year-on-year. The overall performance for the first three quarters of 2024 saw a revenue of 440.0 billion yuan, down 4.7% year-on-year, and a net profit of 38.04 billion yuan, down 12.1% year-on-year. The report maintains profit forecasts for 2024-2026, expecting net profits of 48.9 billion, 52.4 billion, and 55.1 billion yuan respectively, with corresponding EPS of 1.41, 1.51, and 1.59 yuan, indicating a current PE of 17.6, 16.4, and 15.7 times [2][3] Summary by Sections Financial Performance - In Q3 2024, the meat product segment generated revenue of 68.3 billion yuan, down 4.0% year-on-year, but the decline was less than in Q2. Operating profit reached 18.9 billion yuan, up 7.9% year-on-year, attributed to effective cost control and product structure adjustments. The overall profitability and profit per ton reached historical highs, with expectations for continued high profitability in Q4 due to cost reductions [3] - The slaughtering business reported revenue of 85.0 billion yuan in Q3 2024, up 5.0% year-on-year, but operating profit fell by 53.6% to 87.6 million yuan. This decline was primarily due to a mismatch in pig prices between 2024 and 2023, impacting fresh product sales and profitability. However, Q4 is expected to see increased sales and stable profitability in fresh products [4] Business Strategy - The company plans to continue its network expansion, accelerate new channel development, and actively participate in market competition. It aims to enhance market operations through specialized and multi-dimensional strategies, focusing on high-temperature, low-temperature, and frozen products to achieve volume and profit growth. Additionally, the company is accelerating its digital transformation and technological empowerment [3] Financial Projections - The company’s revenue projections for 2024-2026 are 57.695 billion, 60.147 billion, and 63.392 billion yuan respectively, with expected year-on-year growth rates of -3.7%, 4.2%, and 5.4%. The net profit projections for the same period are 4.887 billion, 5.240 billion, and 5.506 billion yuan, with corresponding year-on-year growth rates of -3.3%, 7.2%, and 5.1% [5][8]