SHUNXIN AGRICULTURE(000860) 华泰证券·2025-04-23 08:13Investment Rating - The investment rating for the company is "Accumulate" with a target price of RMB 18.48 [7][8]. Core Views - The company reported a revenue of RMB 9.13 billion and a net profit attributable to the parent company of RMB 231 million for 2024, reflecting a year-on-year decline of 13.8% in revenue but a turnaround in net profit [1][4]. - The white liquor segment achieved steady growth with a revenue of RMB 7.04 billion in 2024, up 3.2% year-on-year, while the pork business is expected to reduce losses compared to the previous year [2][3]. - The gross margin for the white liquor segment decreased by 5.2 percentage points to 45.0% due to slower growth in high-end liquor, while the pork business saw an increase in gross margin by 8.4 percentage points to 2.4% [3]. Summary by Sections Financial Performance - In 2024, the company’s revenue was RMB 9.13 billion, with a net profit of RMB 231 million, marking a significant recovery from previous losses [6]. - The first quarter of 2025 showed a revenue of RMB 3.26 billion, down 19.7% year-on-year, with a net profit of RMB 280 million [1][2]. Business Segments - The white liquor segment generated RMB 7.04 billion in revenue in 2024, with high-end liquor sales declining slightly, while the pork segment's revenue was RMB 1.89 billion, down 27% year-on-year [2][3]. - The company is focusing on marketing innovations to enhance consumer engagement, particularly through the "Golden Standard" series [2]. Profitability Metrics - The overall gross margin for 2024 improved by 4.2 percentage points to 36.0%, while the net profit margin increased by 5.3 percentage points to 2.5% [3]. - The company expects a gradual recovery in profitability, with EPS estimates for 2025 and 2026 adjusted to RMB 0.28 and RMB 0.35, respectively [4][6].