龙大美食（002726）：2024年扭亏为盈，运营优化成效显著

Turned Around in 2024,OperatingOptimizationTaking Effect Rating (Maintain):OVERWEIGHTTarget price (RMB):6.34 Annual Results ReviewAgricultural Products Processing Huatai Research 13 May 2025│China (Mainland) AnalystFAN JunhaoSAC No. S0570524050001SFC No. BDO986fanjunhao@htsc.com+(852) 3658 6000 LongdaMeat Foodstuff’s 2024 revenue/attributable net profit (NP)/recurring NPwereRMB10,990/21.62/-58.21mn(-17.49/+101.41/+95.73%yoy),with4Q24revenue/attributableNPatRMB2,976/-51.42mn(-7.37/+94.22%yoy,+0.19/-445.39% qoq). For 1Q25, revenue/attributable NP were RMB2.55bn/4mn(+1.0/-86% yoy,-14%/turning positive qoq). Longdaimplemented cost reductionandoperationalefficiency enhancement initiatives alongside strengthened internalcontrols and profit-oriented strategies in 2024, driving significantly improved grossmargin and yoy profit recovery. Wesuggestmonitoring market reception of newpreparedfoodproductsandsustainedimprovementsinbreedingcosts.Maintaining OVERWEIGHT. AnalystXIONG Chenghui, PhDSACNo. S0570522120004SFC No. BPK020xiongchenghui@htsc.com+(86) 10 6321 1166 Key data 2024: slaughtering &foodGPMgains droveyoyturnaroundIn2024,Longdaproactivelyphasedoutunderutilizedandloss -makingslaughterhouses as well as inefficient and aging breeding facilities, while scalingdownlow-marginfoodoperations.Despiteayoyrevenuedecline,theserestructuring efforts improved attributable NP. 1) Food business revenue fell 14%yoy to RMB1.9bn, yet increased its revenue contribution by 0.6pp to 17.3% withgross margin rising 1.11pp yoy to 11.2%.2) Slaughtering revenue declined 6.6%yoy to RMB9.0bn, with slaughter volume down 22.0% yoy to 5.02mnunitsand hogsales volume decreasing 41.2% yoy to 382.4kunits, though losses narrowed onhog/porkpricerecovery.Thedisposalofwholly-ownedsubsidiaryTongliaoJinquan generated investment gains, ultimately driving the yoy profit turnaround. 1Q25NPcontractedyoy,likelyimpacted byhogpricevolatility1Q25 revenue grew modestly, likely driven by seasonal Spring Festival sales in the food segment in our view, with gross margin at 4.91% (-1.21pp yoy, +3.23pp qoq).We attribute the yoy margin contraction to hog price fluctuations compressingprofitability in traditional businesses (slaughtering, breeding, etc.). Strategicallyfocusingonhigh-marginfoodproductsthroughdifferentiatedofferings,thecompany maintained marketing intensity with 1Q25 sales expense ratio at 1.36%(-0.02pp yoy, +0.82pp qoq). Source:Wind Earningsforecasts and valuationConsideringpotentiallyamplehogsupply andfallingpricesmaycompressslaughtering margins, wecutour2025/2026attributable NPforecastsby 30/13%to RMB146/212mn, introducing 2027forecastatRMB265mn.Givenimprovingprepared food operations, weassign a 47x 2025E PE to Longda, above its peers’average of 21x on Wind consensus, for ourtarget price of RMB6.34 (previous:RMB7.71, corresponding to47xPE). MaintainOVERWEIGHT. Risks: weaker recovery in live hog capacitythan we expect; African swine fever;food safety issues. Source:Wind, Huatai Research Source:Wind, Huatai Research Full financials Disclaimers Analyst CertificationI/We, FAN Junhao, XIONG Chenghui, hereby certify that the views expressed in this report accurately reflect the personal viewsof the analyst(s) about the subject securities or issuers; and no part of the compensation of the analyst(s) was, is, or willbe,directly or indirectly, related to the inclusion of specific recommendations or views in this report. General Disclaimers and DisclosuresThis research report has been prepared by Huatai Financial Holdings (Hong Kong) Limited (hereinafter referred to as “HFHL”). The information hereinis strictly confidential to the recipient. This report is intended for HFHL, its clients and associatedcompanies. Any other person shall not be deemed a client of the Company merely from his or her receipt of this report. This report is based on information deemed reliable and publicly available by HFHL, but HFHL and its associated company(ies)(collectively, hereinafter “Huatai”) makes no guarantee as to the accuracy or completeness of such information. The opinions, assessments and projections contained herein only reflect the views and judgments at the issuance date. Huataimay issue research reports that contain inconsistent views, assessments and projections with those set out herein at differenttimes. The prices, values and investment returns of the securities or investment instruments referred to herein may fluctuate.Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital mayoccur.Huatai makes no warrants that the information in this report be kept up to date. The information contained in this report may bemodified without notice by Huatai, and investors shall pay attention to such updates or modifications when necessary. HFHL is not a U.S. Financial Industry Regulatory Authority (“FINRA”) member firm, and HFHL research analysts are notregistered/qualified as research a