深度报告-20240220-国海证券-华统股份-002840.SZ-深度报告_浙江禽畜屠宰龙头_新晋养殖佼佼者_36页_2mb

Huatong Share (002840) Industry Deep Research Report Summary

Company Overview: Huatong Share (002840) is a leading Zhejiang-based poultry and livestock屠宰enterprise and a relatively new player in livestock farming. Founded in 2001 and listed on the Shenzhen Stock Exchange, the company has grown as a major force in the regional meat processing industry. It operates a full pig industry supply chain, focusing on屠宰, livestock farming, and feed sectors.

Financial Performance: Since its listing in 2017, the company's revenue has grown at a 14.92% CAGR from 471.5亿元 to 945.2亿元 by 2022. In 2023, the first nine months saw revenue declined to 61.64亿元 due to the low pig cycle, with a loss of 3.58 billion yuan in net profit. The company aims for steady recovery as pig prices potentially rise.

Pig Market Analysis: The current pig cycle is characterized by an extended deadweight loss period, with high inventory levels in sows leading to supply excess. Industry concentration has increased, with top 10 firms accounting for 22.5% of output by 2023. Huatong's stock performance has underperformed the沪深300 index.

Key Business Segments:

• Livestock Farming: Rapid growth since 2019, with over 35 million pigs farrowed annually by 2023. It uses high-rise, intensively farmed facilities, improving efficiency and lowering costs; complete costs decreased from 18元/kg in 2022 to 16.5元/kg in 2023.
• 屠宰and Meat Processing: This remains the core business, contributing over 90% to revenue. Capacity has expanded to 14 million pigs annually, with plans for interregional growth.

Financial Forecasts and Investment Recommendation: The company is rated "Buy" for the first time. Forecasts for 2023-2025 show revenue growing to 10.18 billion yuan (2023E), 14.31 billion yuan (2024E), and 19.169 billion yuan (2025E), with net profit turning positive by 2024E. Valuation multiples suggest attractive PE ratios in the future.

Risk Highlights: Key risks include animal disease outbreaks, raw material price volatility, and food safety concerns.

This summary captures the report's essentials for informational purposes.