Henan Shuanghui Investment & Development (000895) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached ¥16.41 billion, up 4.06% year-over-year; net profit attributable to shareholders was ¥1.51 billion, up 1.18% year-over-year.

• For the first nine months, revenue was ¥44.11 billion, down 4.75% year-over-year; net profit attributable to shareholders was ¥3.80 billion, down 12.08% year-over-year.

• Meat product sales volume in Q3 was 839,400 tons, up 0.57% year-over-year; for the first nine months, sales volume was 2,348,800 tons, down 4.93% year-over-year.

Financial highlights

• Q3 operating cash flow was ¥6.91 billion, up 182.03% year-over-year.

• Basic and diluted EPS for Q3 were ¥0.4353, up 1.18% year-over-year; for the first nine months, EPS was ¥1.0981, down 12.08% year-over-year.

• Q3 gross margin improved as cost control and inventory release supported profitability.

• Non-recurring gains in Q3 totaled ¥63.14 million, mainly from government subsidies and financial asset gains.

Outlook and guidance

• Several major investment projects (meat chicken, pig farming, slaughtering, and processing) completed, but new operations have yet to achieve positive returns due to industry oversupply and low prices.