公司拟回购股份彰显信心，与PIC、巨星农牧合作共建种猪场共赢。据公司公告，公司拟以不超过人民币42.55 元/股价格回购1-2 亿元公司股份。此次回购有利于进一步建立、健全公司长效激励机制，吸引和留住优秀人才，维护公司全体股东合法权益，促进公司稳定健康发展。2024年 10 月，由 PIC?中国、神农集团和巨星农牧合作投资的 PIC?黔南遗传核心场项目正式启动，该项目有利于养猪成本进一步下降以及在资源整合下，有望助力养殖板块快速发展。Incident: The company released its three-quarter report for 2024. From January to September '24, revenue was 4.078 billion yuan, up 42.11% year on year; net profit to mother was 0.48 billion yuan, up 321.20% year on year. On a quarterly basis, the company achieved net profit of -0.004 billion yuan (+96.63%), 0.128 billion yuan (+180.73%), and 0.356 billion yuan (+662.97%) in Q1, Q2, and Q3 in '24, respectively.
Farming costs are leading in the industry, and listing is expected to grow rapidly. From January to September '24, the company sold 1.6637 million pigs, up 49.60% year on year; sales revenue was 3.236 billion yuan, up 63.19% year on year.
The company's breeding cost advantage is obvious, and production technology indicators are excellent. In September '24, the full cost was about 13.40 yuan/kg, the feed-to-meat ratio was 2.49, the weaning cost was 300 yuan/head, and the full cost for the third quarter was 13.60 yuan/kg. The company continues to reduce costs and increase efficiency through the renewal and optimization of sow groups, further improving production indicators, and measures such as full production in pig farms, improving management standards, and strengthening epidemic clean-up. The full cost is expected to drop to around 13 yuan/kg for the whole of '25. The company is speeding up the production capacity layout. The company's current sow farm production capacity is 0.122 million heads, and the company can reproduce about 0.114 million heads at the end of September '24. With the company's full production capacity, it is expected to release about 2.2 million heads this year, and 3.2-3.5 million heads next year.
The company's plan to repurchase shares shows confidence, and cooperates with PIC and Superstar Agriculture and Animal Husbandry to build a win-win pig breeding farm. According to the company's announcement, the company plans to repurchase 0.1-0.2 billion yuan of company shares at a price not exceeding RMB 42.55 per share. This repurchase is conducive to further establishing and improving the company's long-term incentive mechanism, attracting and retaining outstanding talents, safeguarding the legitimate rights and interests of all shareholders of the company, and promoting the stable and healthy development of the company. October 2024, by PIC? PIC for a cooperative investment between China, Shennong Group, and Superstar Farming and Animal Husbandry? The Qiannan Genetic Core Farm Project was officially launched. The project is conducive to a further reduction in pig farming costs and is expected to help the breeding sector develop rapidly under resource integration.
Investment advice: Considering that the company's full cost is in the first tier, the number of listings is growing rapidly. We expect the company's net profit to be 0.72 billion yuan, 1.62 billion yuan, and 1.98 billion yuan in 2024, 2025, and 2026, respectively, up 279%, 126%, and 22% year-on-year, respectively. The current stock price corresponding to PE is 22, 10, and 8 times, respectively. Maintain a “buy” rating.
Risk warning: livestock and poultry epidemic risk, natural disaster risk, etc.
