Breaking Down Jiangsu Lihua Animal Husbandry Co., Ltd. Financial Health: Key Insights for Investors

Dive into a data-driven look at Jiangsu Lihua Animal Husbandry Co., Ltd. (300761.SZ): the company posted revenue of 17.72 billion yuan in 2024 (up 15.44%), with Q1‑2025 revenue at 4.086 billion yuan (+11.60%), and a business mix led by poultry contributing 81.98% of revenue while swine surged 76.51% to 2.93 billion yuan; profitability advanced sharply as net income attributable to shareholders reached 1.52 billion yuan in 2024, a 447.7% year‑on‑year jump, supported by a trailing EPS of 1.84 yuan and ROE of 16.8%; the balance sheet shows manageable leverage with total debt of 2.16 billion yuan and a debt‑to‑equity ratio of 26.41% as of March 31, 2025, cash reserves of 876.24 million yuan, and trailing operating cash flow of 2.58 billion yuan despite a slightly constrained current ratio of 0.86 and negative trailing free cash flow of 35.32 million yuan; valuation metrics as of July 2025 point to a market cap of 15.74 billion yuan and a bargain‑oriented multiple profile with a trailing P/E of 9.45, P/S of 0.87 and EV/EBITDA of 6.85, while investors should weigh risks from price and supply volatility, disease and inventory impairment alongside growth levers such as plans for 8%-10% annual broiler sales growth, expansion toward 2 million pigs in 2025, nearly 100,000 sows in breeding stock, and scaling slaughter capacity toward 100-120 million birds.

Jiangsu Lihua Animal Husbandry Co., Ltd. (300761.SZ) - Revenue Analysis

• Total revenue (2024): 17.72 billion yuan (+15.44% vs 2023)
• Q1 2025 revenue: 4.086 billion yuan (+11.60% YoY)
• Poultry share of revenue (2024): 81.98%
• Swine share of revenue (2024): 16.51%
• Yellow-feather broilers sold (2024): 516 million heads (+12.95% YoY)
• Swine business revenue (2024): 2.93 billion yuan (+76.51% YoY)
• Revenue per share (TTM): 21.93 yuan

• Poultry dominates earnings: 81.98% of revenue signals high exposure to poultry price cycles and consumption trends.
• Swine recovery: 76.51% revenue growth in swine reflects either volume gains, price improvements, or margin recovery after prior downturns.
• Volume-led poultry growth: 516 million yellow-feather broilers sold (+12.95%) - a clear contributor to the revenue increase.
• Recent momentum: Q1 2025 revenue up 11.60% YoY suggests sustained demand into 2025.
• Per-share productivity: 21.93 yuan revenue per share (TTM) provides a benchmark for revenue-based valuation comparisons.

Jiangsu Lihua Animal Husbandry Co., Ltd. (300761.SZ) - Profitability Metrics

• Net income attributable to shareholders (2024): ¥1.52 billion - a 447.7% year-on-year increase.
• Gross margin (2024): 15.9%.
• Net margin (2024): 8.6%.
• Operating margin (as of 2025-03-31): 4.44%.
• Return on equity (TTM): 16.8%.
• Return on assets (TTM): 10.3%.
• Earnings per share (TTM): ¥1.84.

• Margin dynamics: Gross margin at 15.9% vs. net margin 8.6% indicates meaningful operating and non-operating costs between gross profit and bottom line.
• Profitability efficiency: ROE of 16.8% and ROA of 10.3% reflect solid capital and asset returns relative to peers in animal husbandry.
• Recent momentum: Sharp net income growth (447.7% YoY) signals a turnaround or one-off adjustments; monitor sustainability via quarterly operating margin trends (4.44% as of 2025-03-31).

Jiangsu Lihua Animal Husbandry Co., Ltd. (300761.SZ) - Debt vs. Equity Structure

• Total debt: 2.16 billion yuan (as of 2025-03-31)
• Total cash reserves: 876.24 million yuan (as of 2025-03-31)
• Total debt-to-equity ratio: 26.41% (as of 2025-03-31)
• Book value per share: 11.23 yuan (as of 2025-03-31)
• Enterprise value / Revenue (EV/Rev): 0.95
• Enterprise value / EBITDA (EV/EBITDA): 6.85

• Leverage: At 26.41% debt-to-equity, the company maintains moderate leverage, limiting financial risk while preserving capacity for strategic investment.
• Liquidity: Cash of 876.24 million yuan covers a substantial portion of short-term liabilities and reduces refinancing pressure.
• Valuation context: EV/Revenue of 0.95 and EV/EBITDA of 6.85 suggest a relatively attractive enterprise valuation against peers in animal husbandry and agribusiness.
• Equity cushion: Book value per share of 11.23 yuan provides a tangible equity backing per share for shareholders.

Jiangsu Lihua Animal Husbandry Co., Ltd. (300761.SZ) - Liquidity and Solvency

• Current ratio (03-31-2025): 0.86 - below 1.0, signaling potential short-term liquidity pressure.
• Operating cash flow (TTM): ¥2.58 billion - strong cash generation from operations over the trailing twelve months.
• Free cash flow (TTM): -¥35.32 million - slightly negative, indicating capital expenditures and working capital needs absorbed most operating cash.
• Total cash reserves (03-31-2025): ¥876.24 million - available liquidity buffer against short-term obligations.
• Book value per share (03-31-2025): ¥11.23 - equity backing per share.
• Enterprise value / Revenue: 0.95 - EV roughly in line with annual revenue, suggesting a modest market valuation relative to sales.

Jiangsu Lihua Animal Husbandry Co., Ltd. (300761.SZ) - Valuation Analysis

Key market valuation metrics as of early July 2025 indicate a relatively low market multiple profile for Jiangsu Lihua Animal Husbandry Co., Ltd., suggesting investor pricing that is modest relative to earnings, sales and book value.

• Trailing P/E (as of July 4, 2025): 9.45
• Forward P/E: 9.35
• Price-to-Sales (P/S): 0.87
• Price-to-Book (P/B): 1.67
• EV/EBITDA: 6.85
• Market capitalization (as of July 1, 2025): ¥15.74 billion

Implications for investors:

• The trailing and forward P/E ratios near 9.4 imply modest earnings-based valuation and limited premium for expected growth.
• A P/S below 1.0 (0.87) signals market pricing below one year of company sales, often interpreted as value-oriented or reflecting margin/earnings risk.
• P/B at 1.67 indicates the stock trades above book value but not at a high premium, balancing asset backing with earnings expectations.
• EV/EBITDA of 6.85 suggests an enterprise-level valuation consistent with defensive or cyclical industrial/food sector multiples.

For investor context and shareholder composition insights: Exploring Jiangsu Lihua Animal Husbandry Co., Ltd. Investor Profile: Who's Buying and Why?

Jiangsu Lihua Animal Husbandry Co., Ltd. (300761.SZ) - Risk Factors

• Price volatility in livestock and poultry products can compress gross margins and operating profit.
• Fluctuations in feed and other raw material supply/prices expose the company to cost-push inflation.
• Inventory impairment risk from decline in fair value of biological assets or finished goods.
• Animal epidemics and biosecurity breaches may force culling, production halts, or quarantine measures.
• Natural disasters (floods, typhoons) can damage farms, disrupt logistics, and increase recovery costs.
• The actual controller and a co-operator have publicly planned a reduction of up to 3% of holdings between July 22 and October 21, 2025, which may affect free float and share price liquidity.

• Key monitoring metrics for investors: selling prices per kg of core products, feed cost per ton, herd/flock counts, biological asset valuations, inventory turnover, gross margin percentage, and cash conversion cycle.
• Regulatory and disclosure updates (including the planned 3% reduction timeline) should be tracked via official filings and announcements.

Jiangsu Lihua Animal Husbandry Co., Ltd. (300761.SZ) - Growth Opportunities

• Broiler sales: targeted annual growth of 8%-10%.
• Swine sales: target to sell 2 million pigs in 2025 with a production cost target of ¥12.8/kg.
• Breeding scale: nearly 100,000 sows in the breeding stock to support herd expansion.
• Slaughter capacity: building toward 120 million birds annually, with an interim target of 100 million birds in 2025.
• Genetics and upstream integration: strengthening genetic resources and advancing upstream in the supply chain to improve biosecurity, performance, and cost control.

• Vertical integration rationale: improving upstream genetics and internal breeding reduces reliance on external supply, buffers feed and health cost volatility, and supports targeted production cost of ¥12.8/kg for swine.
• Scale economics: reaching 100 million-120 million slaughtered broilers annually should materially lower per-unit processing and logistics costs, supporting margin expansion versus peers.
• Herd expansion: nearly 100,000 sows provides a volume base to hit the 2 million pigs sold target in 2025 while enabling genetic selection to raise average daily gain and feed conversion ratios.

• Selection and improvement programs for Duroc, Landrace, and Large White to boost growth rates and carcass yield.
• Enhanced biosecurity and veterinary protocols tied to upstream breeding facilities to reduce mortality and treatment costs.
• Integration of genetics with feed and management practices to compress time-to-market and lower feed conversion ratios.