20230816-群益证券-双汇发展-000895.SZ-经营稳健_H1业绩符合预期_3页_411kb

Company Update: Double Elm Development (000895SZ) Research Report, dated August 16, 2023

Key Points

• The report reviews Double Elm Development, a company in the Food & Beverage industry with A-share trading currently at 2494 yuan per share.
• Target price is set at 30 yuan, based on analysis of financial performance.
• Performance metrics: For 2023 first half (H1), revenue reached 3052 billion yuan with a 92% year-on-year increase; net profit was 284 billion yuan with a 39% YoY gain, while gross margin declined to 17.56%.

Detailed Analysis

• Meat product sales increased significantly with overseas exports reaching 164 million tons in H1, driven by higher volumes and supportive prices. Second quarter saw meat product growth lagging due to price declines.
• Slaughter business showed strong results, with revenue jumping 117% YoY to 158.9 billion, benefiting from expanded sales channels.
• Meat product segment faced margin pressures but improved in Q2 due to volume growth and cost reductions.
• Overall P/E ratio is estimated at around 14-15 times for 2023 and 2024, indicating reasonable valuation.
• Investment recommendation: "Buy," supported by stable operations, dividend payouts, and potential in new sectors like pre-made foods and animal husbandry.

Future Outlook

• 2023 and 2024 EPS projected at 1.74 yuan and 1.93 yuan respectively, with net profit growth rates of 72% and 108% YoY.
• Pig price volatility and market risks, including product demand and safety issues, are key concerns.

Dividend and Payouts

• Mid-term dividend: 7.5 yuan per 10 shares, yielding about 3%. Estimated full-year dividend yield ranges around 6-7%.

Legal and Risk Notes

• No specific legal issues flagged beyond standard disclaimer, with risk factors including variability in meat product sales and pig price movements.

This summary distills the core information from the 2023 August 16 report, highlighting key financial metrics, performance drivers, and investment implications.