Guangdong Haid Group (002311) Q2 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 was ¥52.30 billion, down 0.84% year-over-year, while net profit attributable to shareholders surged 93.15% to ¥2.13 billion, driven by improved feed margins and a turnaround in the farming segment.

• Feed sales volume grew 8.5% year-over-year, outperforming a 4.1% national decline, with notable gains in aquatic and poultry feed, while pig feed volume fell 7% but market share increased.

• Overseas feed sales exceeded 1 million tons, up over 30% year-over-year, with improved profitability and expanded international presence.

Financial highlights

• Operating income: ¥52.30 billion, -0.84% year-over-year; net profit attributable to shareholders: ¥2.13 billion, +93.15% year-over-year.

• Gross margin for feed segment: 10.04% (+0.87ppt); farming segment margin: 16.89% (+9.90ppt).

• Operating cash flow: ¥1.90 billion, down 65.72% year-over-year due to lower feed prices and increased raw material prepayments.

• R&D investment: ¥399.66 million, up 16.02% year-over-year.

• Total assets: ¥49.19 billion (+9.94% from year-end 2023); net assets: ¥20.14 billion (+2.50%).

• Basic and diluted EPS: ¥1.28 (+91.04% year-over-year); ROE: 10.56% (+4.33ppt).

Outlook and guidance

• The company will maintain its strategic focus on feed business, aiming for continued volume growth and enhanced profitability.

• Plans to further expand international operations and leverage R&D to drive product innovation and cost efficiency.