The total output per unit area of summer grain has achieved good results in history, and the performance is under short-term pressure and long-term improvement. Su Reclamation Agricultural Development issued a semi-annual report in 2023. In the first half of 2023, the company achieved an operating income of 5.288 billion yuan (year-on-year-14.02%) and a net profit of 281 million yuan (year-on-year-19.10%). During the reporting period, the company's main planting industry achieved a total output of 622700 tons of summer grain (+ 15.85% compared with the same period last year), and the average yield of wheat per mu in its own base was 1234 jin (+ 14.79% compared with the same period last year), a new high. However, due to the sluggish demand for major products such as wheat, rice and edible oil, and the impact of declining sales and prices, the company's profits are under pressure. we reduce the company's 2023-2025 net return profit to 743, 983, 000, 000, The company's summer grain yield per unit area and total output have made historical achievements, short-term performance is under pressure, long-term operation is improving, and the "buy" rating is maintained.
Cultivated land area steadily increased grain and oil production capacity merger and expansion, planting, grain and oil business short-term pressure long-term good reporting period, the company's planting sector achieved revenue of 661 million yuan (year-on-year-14.90%), sowing in the summer of 2023, the company independently operated an area of 1.2825 million mu of cultivated land, maintaining steady growth. The grain and oil sector achieved revenue of 1.118 billion yuan (year-on-year-38.56%). The company has more than 300000 tons of edible oil refining capacity and continues to acquire high-quality assets. In June 2023, the company won Jingjiang Longwei (with more than 500000 tons of palm oil production capacity) for 180 million yuan. It is expected to be put into production in 2 years. During the reporting period, the company's sales of self-produced wheat, harvested wheat, rice and edible oil were 10.18,17.06,9.88 and 110400 tons respectively, which were-22.28%,-24.18%,-35.47% and-32.93% respectively compared with the same period last year. The company's planting and edible oil business was affected by the downturn in demand, and short-term sales were under pressure. The company expects a bumper wheat harvest in June to realize profits in the second half of the year, the impact of torrential rains and floods on wheat supply gradually appeared, wheat prices tended to rise in the second half of the year, and with the gradual introduction of China's economic support policies, the sales of all kinds of products of the company gradually improved.
The obvious advantage of rice seed sales increased steadily, and the malt business focused on high-end prospects. During the reporting period, the company's seed sector achieved revenue of 1.748 billion yuan (year-on-year + 189.06%), of which rice seed sales were 69900 tons, + 22.52% over the same period last year. Sun Company Dahua seed Industry was once again rated as the national key leading enterprise of agricultural industrialization. Malt plate achieved revenue of 538 million yuan (year-on-year + 37.79%), the company's malt business production capacity of 250000 tons, focusing on expanding the high-end brand market, the company sold 119400 tons of malt (+ 9.36% year-on-year) during the reporting period, and completed a total of 41900 tons of high-end malt shipment. complete the annual high-end malt shipping budget of 64%.
Risk hint: planting costs rose faster than expected, barley prices rose less than expected, and demand was lower than expected.