SHUANGHUI(SZ:000895)2024-04-23 02:32Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the near term [7]. Core Views - The company's Q1 2024 performance met expectations, with total revenue of 14.308 billion, a year-on-year decrease of 8.9%, and a net profit of 1.272 billion, down 14.54% year-on-year. The decline in revenue and profit was anticipated [7]. - The meat products segment achieved a record high in profitability, with operating profit increasing by 15.7% year-on-year, despite a 4.5% decline in revenue [7]. - The company is expected to continue its growth strategy by expanding its distribution network and developing high-end supermarket channels, which may lead to a recovery in meat product sales [7]. Summary by Sections Financial Performance - For Q1 2024, the company reported total revenue of 14.308 billion, a decrease of 8.9% compared to the previous year. The net profit was 1.272 billion, reflecting a 14.54% decline year-on-year [7][9]. - The meat products revenue was 6.793 billion, down 4.5% year-on-year, with sales volume at 380,000 tons, a decrease of 4.9% [7]. - The slaughtering business generated revenue of 6.598 billion, down 16.5% year-on-year, with operating profit dropping by 68.5% to 96 million [8]. Profitability and Forecast - The report forecasts net profits for 2024, 2025, and 2026 to be 5.338 billion, 5.643 billion, and 5.912 billion respectively, with expected growth rates of 6%, 6%, and 5% [7][9]. - The company’s dividend yield for 2023 was noted at 5.3%, indicating a strong commitment to returning value to shareholders [7]. Market Position and Strategy - The company is recognized as a leading player in the meat products industry, benefiting from strong competitive advantages and low valuation metrics [7]. - The report highlights the company's ongoing efforts to enhance its market presence through strategic channel development and product offerings [7].