Shuanghui Development (000895): Continuous adjustment of product structure New products worth looking forward to in the future

Shuanghui Development (000895): Continuous adjustment of product structure New products worth looking forward to in the future

Report Summary: Events: Shuanghui Development’s third quarterly report exceeded expectations.

The company’s 19Q1-Q3 revenue was 419.

700 million, ten years +14.

99%, net profit attributable to mother 39.

4 trillion, +7 a year.

86%, of which the single third quarter revenue is two years +28.

51%, net profit attributable to mother +10 for ten years.

88%.

The company, as the industry leader, has advantages in scale and cost control under the adverse trend, focusing on the medium and long-term effects of swine fever. Swine fever will cause small and medium-sized slaughter plants to be cleared, and the market share of the leader is expected to increase.

In terms of meat products, the company continues to optimize its product structure for high-end transformation. The structural price increase is used to suppress cost changes. The profit of the meat products business is short-term or under pressure. However, it is optimistic about the company’s future brand premium capabilities.

The company’s performance exceeded expectations mainly because the slaughtering business continued to benefit from rising pork prices, but the slaughter volume still declined.

In terms of operations, affected by African swine fever, pork prices continued to rise in 19Q3, the company’s slaughter volume was under pressure, and meat product consumption decreased.

As of the end of the third quarter, the company slaughtered 11.27 million pigs, a decrease of 6 over the same period.

35%, fresh frozen meat and meat products are exported 233.

65 for the first time, a decrease of 1 over the same period.

08%, because the inventory of slaughtering industry and raw materials for meat products increased, the inventory increased at the end of the third quarter 82.

82%.

In terms of business, the slaughter business revenue and net profit benefited from the increase in pork prices, and the business revenue increased in 19Q1-Q3.

3%, operating profit increases by 90% every year.

6%, but pork as the upstream raw material of another business meat products, due to its profit pressure, 19Q1-Q3 meat products business operating profit replacement.

8%, the company’s high-end structural adjustment of meat products has suppressed the impact of rising raw material costs on profits.

The company completed the merger and consolidation of the original parent company Shuanghui Group in the third quarter, and added three subsidiaries after the completion of the acquisition. However, from the consolidated statement, the impact on the company’s revenue and profit is not significant, mainly in terms of equity.

Shuanghui Group is a shareholding company that does not directly engage in specific production and business operations. After this merger, the holding structure of Shuanghui Development became clearer and became the only meat industry platform of Wanzhou International in China, helping the company to consolidate industry integrationWith the acquisition of resources, the company’s market share is expected to further increase in the future.

The company’s core logic in the future 都市夜网 is the growth of the meat products division. The slaughtering business has benefited from the rising price of pork. The net profit has increased at a higher rate. The profit forecast is raised.

03, 622.

25,686.

69 ppm, a 15-year growth rate.

47% / 10.

13% / 10.

36%, net profit 54.

38, 58.

74, 63.

7.3 billion, a previous growth rate of 7.

11% / 8.

02% / 8.

50%, the budget returns are 1.

59, 1, 72, 1, 87, given 20X estimates in 2020, corresponding to a target price of 34.

4 yuan, the earlier October 28 closing price rose 31%, maintaining the “strongly recommended” level. Risk warnings: Meat product sales are not up to expectations, food safety issues, and disease problems in slaughtering business.