SHUANGHUI(000895) 华创证券·2025-03-26 03:43Investment Rating - The report maintains a "Strong Buy" rating for Shuanghui Development, expecting it to outperform the benchmark index by over 20% in the next six months [2][24]. Core Insights - In 2024, Shuanghui Development achieved total revenue of 59.715 billion yuan, a slight decrease of 0.64% year-on-year, with a net profit attributable to shareholders of 4.989 billion yuan, down 1.26% year-on-year. However, Q4 showed a strong performance with revenue of 15.6 billion yuan, up 13.45% year-on-year, and a net profit of 1.19 billion yuan, up 63.3% year-on-year [2][7]. - The company proposed a high dividend payout, maintaining a dividend rate of 97.9%, which corresponds to a dividend yield of 5.4% [2][7]. Financial Performance Summary - Revenue and Profit Forecasts: - Total revenue is projected to grow to 61.983 billion yuan in 2025, with a year-on-year growth rate of 4.1% [2]. - Net profit is expected to increase to 5.245 billion yuan in 2025, reflecting a growth rate of 5.1% [2]. - Earnings Per Share (EPS): - EPS is forecasted to be 1.51 yuan in 2025, with a price-to-earnings (P/E) ratio of 17 times [2][3]. - Key Financial Ratios: - The company maintains a debt-to-equity ratio of 39.7% and an asset-liability ratio of 42.8% [3][13]. Business Segment Analysis - Meat Products: - In 2024, the meat products segment generated revenue of 24.79 billion yuan, down 6.2% year-on-year, with a unit profit of 4,699 yuan per ton, reaching a historical high [7][9]. - Q4 revenue for meat products was 5.59 billion yuan, a slight decrease of 0.4% year-on-year, but unit profit increased by 9.4% to 4,525 yuan per ton [7][9]. - Slaughtering and Other Businesses: - The slaughtering segment reported revenue of 30.33 billion yuan in 2024, down 2.1% year-on-year, but Q4 revenue increased by 21.7% to 8.508 billion yuan due to favorable pig prices [7][10]. - The company aims to improve operational efficiency in its breeding segment, which reported a loss of approximately 370 million yuan for the year but turned profitable in Q4 [7][10]. Future Outlook - The company plans to enhance its specialized operations in the meat products segment and expand its slaughtering scale, with expectations of turning the breeding segment profitable [7][10]. - The overall business is projected to achieve stable growth, supported by cost advantages and improved operational efficiency [7][10].