Core Viewpoint - CICC maintains the earnings forecast for Dekang Agriculture (02419) for 2025/26, with a target price of HKD 111, indicating a 33% upside potential from the current price [1] Group 1: Financial Performance - Dekang Agriculture reported 1H25 revenue of CNY 11.7 billion, a year-on-year increase of 24.3%, and net profit of CNY 1.27 billion, up 250.6%, aligning with CICC's expectations [2] - The significant growth in performance is attributed to improved management efficiency and a decrease in pig costs [2] Group 2: Business Segments - The swine business continues to expand with high quality, contributing to revenue growth; 1H25 swine revenue increased by 32.6% to CNY 9.88 billion, with sales volume up 27.1% to 5.1174 million heads [3] - Poultry business remains stable, with 1H25 revenue of CNY 1.34 billion and a 7.2% increase in yellow feather chicken sales to 43 million birds [3] - The slaughtering and ancillary products segment also saw growth, with revenue up 16.1% to CNY 480 million and slaughter volume increasing by 18.5% to 249,000 heads [3] Group 3: Cost and Financial Health - Dekang Agriculture maintains a leading cost advantage in the industry, with 1H25 swine production costs below CNY 12.5 per kilogram, and a PSY of 27 heads per year, also industry-leading [4] - The company's asset-liability ratio improved to 59.9% in 1H25, down 14.3 percentage points from 1H24, indicating ongoing financial health [4] Group 4: Growth Strategy and Value Recovery - The company employs a light-asset model with a unique breeding farm system, achieving lower capital expenditure and binding closely with cooperative farmers; the average breeding fee reached CNY 800,000 per farm, up 15.5% [5] - Dekang Agriculture leverages superior breeding technology and precise nutrition to maintain low-cost advantages, with expectations for continued excess profits per head [5] - Following the release of the 2024 annual report, the company's growth narrative has gained recognition, and liquidity improvements have led to value recovery, with an estimated market value of CNY 2,623 per head, indicating potential for further valuation enhancement [5]

Core Viewpoint - CICC maintains the earnings forecast for Dekang Agriculture (02419) for 2025/26, with a target price of HKD 111, indicating a 33% upside potential from the current price [1] Group 1: Financial Performance - Dekang Agriculture reported 1H25 revenue of CNY 11.7 billion, a year-on-year increase of 24.3%, and net profit of CNY 1.27 billion, up 250.6%, aligning with CICC's expectations [2] - The significant growth in performance is attributed to improved management efficiency and a decrease in pig costs [2] Group 2: Business Segments - The pig farming segment continues to expand, with 1H25 revenue from pigs increasing by 32.6% to CNY 9.88 billion and sales volume rising by 27.1% to 5.1174 million heads [2] - Poultry business remains stable, with 1H25 revenue of CNY 1.34 billion and a 7.2% increase in yellow feather chicken sales to 43 million birds [2] - Revenue from slaughtering and related products grew by 16.1% to CNY 480 million, with slaughter volume increasing by 18.5% to 249,000 heads [2] Group 3: Cost and Efficiency - Dekang Agriculture maintains a leading cost advantage in the industry, with 1H25 pig production costs below CNY 12.5 per kilogram [3] - The company achieved a PSY (pigs per sow per year) of 27, placing it at the forefront of the industry [3] - The debt ratio decreased to 59.9% in 1H25, down 14.3 percentage points from 1H24, indicating ongoing balance sheet improvement [3] Group 4: Growth Strategy - The company employs a light-asset model through its unique pig breeding farm partnership, achieving lower capital expenditures [4] - Dekang Agriculture leverages advanced breeding technology and precise nutrition to maintain its low-cost advantage, with expectations of continued excess profits per head [4] - The company's market value per head is estimated at CNY 2,623, suggesting room for further valuation improvement compared to industry leaders [4]

Core Viewpoint - The swine farming industry is entering a phase of high-quality development under supportive policies, focusing on optimizing production capacity while ensuring stable supply and promoting farmers' income [1][7]. Company Performance - Dekang Agriculture reported a revenue of 11.695 billion yuan in the first half of 2025, a year-on-year increase of 24.3%, with a pre-fair value adjustment profit of approximately 1.273 billion yuan, up 250.6% from 363 million yuan in the same period last year [1]. - The swine segment is the main contributor to Dekang's growth, achieving a revenue of 9.879 billion yuan, a 32.6% increase year-on-year, driven by a 27.1% increase in sales volume to 5.1174 million heads and a 3.5% increase in average selling price to 2032.7 yuan per head [2][8]. Competitive Advantages - Dekang has established itself in the top tier of domestic swine breeding, enhancing efficiency and reducing costs through self-bred quality breeding stock, with its core breeding group ranking first in key economic indicators [3]. - The company employs precise and flexible feed nutrition technology, implementing customized nutrition formulas to improve feeding efficiency and reduce costs, aligning with national policies on reducing soybean meal usage [3][4]. - The innovative "No. 2 Family Farm" model allows for a lighter asset structure, fostering mutual benefits between Dekang and farmers, which enhances overall production efficiency [4][6]. Social Responsibility and Industry Impact - Dekang actively addresses industry pain points such as overcapacity and farmer income issues by adopting a technology service-oriented business model, emphasizing the importance of farmer education and support [5][6]. - The company integrates government support, advanced technology, and cost advantages to create a win-win industrial ecosystem, providing training and guidance to cooperative farmers [7][8]. - Dekang's efforts in the "联农带农" (Linking Farmers) model contribute to solving rural issues and promoting common prosperity, aligning with national agricultural policies [7][8].

Summary of Dekang Agriculture and Animal Husbandry Conference Call Company Overview - **Company**: Dekang Agriculture and Animal Husbandry - **Industry**: Agriculture and Animal Husbandry Key Financial Performance - **Revenue**: 11.695 billion CNY in H1 2025, up 24.3% YoY [2][3] - **Sales Volume**: 42.7033 million yellow feather chickens, up 7.2% YoY [2] - **Average Price**: Yellow feather chicken price down 19.1% to 30.5 CNY per chicken [2] - **Net Profit**: Adjusted net profit of 1.36 billion CNY, with net profit attributable to shareholders at 1.292 billion CNY [2][3] - **Cost Control**: Effective cost management offset the impact of falling pig prices [2] Operational Achievements - **Breeding Technology**: Significant advancements in breeding technology, precision nutrition, and disease prevention [4][5] - **Profitability from Breeding**: Self-developed breeding systems yield over 100 CNY per pig and 2,000 CNY per sow annually [2][4] - **Feed Cost Management**: Soybean meal usage reduced to below 3% [2][5] - **Production Efficiency**: Total cost decreased by 1.7 CNY/kg to 12.4 CNY/kg, with feed costs down by 0.9-1 CNY/kg [2][14] Business Segments Performance - **Household Appliances**: Revenue down 13.5% to 1.336 billion CNY due to weak dining consumption [2][7] - **Auxiliary Products**: Revenue up 16.1% to 485.1 million CNY, with slaughter volume up over 18% to 240,000 heads [2][8] Innovative Farming Model - **Family Farm Model**: Average income per household from the new family farm model reached 800,000 CNY, up 15.5% YoY [2][6] - **Training Initiatives**: Investment of 50 million CNY in a pig farming technology training center to empower farmers [2][6] Future Outlook and Challenges - **Market Uncertainty**: Acknowledgment of challenges including disease risks, price fluctuations, and policy guidance [9] - **Sustainable Development**: Commitment to rural revitalization and support for small farmers [9][10] - **Cost Reduction Potential**: Anticipation of further cost reductions in H2 2025 [2][14] Talent Development and Corporate Culture - **Employee Growth**: Addition of 500 employees focused on pig production, poultry farming, and slaughtering [35] - **Training Programs**: Extensive training initiatives for over 350,000 participants to enhance employee skills [8][35] ESG Initiatives - **Environmental Investments**: Ongoing investments in ESG initiatives, including ecological farming practices [11][12] Conclusion - **Long-term Growth Potential**: Strong confidence in Dekang's future growth driven by innovative farming models, effective cost management, and a focus on employee welfare [47]

Core Viewpoint - Dekang Agriculture and Animal Husbandry (02419) reported a significant increase in revenue and profit for the six months ending June 30, 2025, driven by growth in the pig farming sector and improved operational efficiencies [1] Financial Performance - The company achieved a total revenue of 11.695 billion yuan, representing a year-on-year growth of 24.3% [1] - The fair value adjustment profit of biological assets reached 1.273 billion yuan, marking a substantial increase of 250.6% [1] - Overall gross margin improved from 12.4% in the first half of 2024 to 17.4% in the first half of 2025, attributed to the expansion of new-style family farms and reduced production costs [1] Segment Performance - Revenue from the pig farming segment amounted to 9.879 billion yuan, reflecting a year-on-year increase of 32.6% [1] - Pig sales reached 5.1174 million heads, up 27.1% compared to the previous year [1] - The average selling price of commercial pigs was 2,032.7 yuan per head, an increase of 3.5% year-on-year [1] Competitive Advantage - The growth in the pig farming business is supported by the company's advanced and sustainable breeding system, comprehensive precision nutrition and feed formulation technology, continuous technical empowerment, efficient team management, and persistent disease prevention efforts [1] - In a competitive pig farming industry, the synergy of breeding technology, management practices, and disease prevention measures provides the company with significant cyclical resistance [1]

Core Insights - Dekang Agriculture and Animal Husbandry (02419) reported a revenue of RMB 11.695 billion for the six months ending June 30, 2025, representing a year-on-year growth of 24.3% [1] - The company's biological asset fair value-adjusted profit reached RMB 1.273 billion, showing a significant increase of 250.6% compared to the previous year [1] Financial Performance - The overall gross margin improved from 12.4% in the first half of 2024 to 17.4% in the first half of 2025, attributed to the expansion of new family farms, continuous management efficiency improvements, and a decrease in feed and raw material prices, leading to a substantial reduction in production costs [1] - Revenue growth was primarily driven by the pig farming segment, which generated RMB 9.879 billion, a year-on-year increase of 32.6% [1] Operational Highlights - The pig sales volume reached 5.1174 million heads, reflecting a year-on-year growth of 27.1%, with the average selling price of commodity pigs at RMB 2,032.7 per head, up by 3.5% [1] - The growth in the pig farming business is attributed to the company's advanced and sustainable self-breeding system, comprehensive precision nutrition and feed formulation technology, continuous technological empowerment, efficient team management, and persistent disease prevention efforts [1] - In a competitive pig farming industry, the synergy of breeding technology, management practices, and disease prevention measures has provided the company with significant cyclical resistance [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部 分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 DEKON FOOD AND AGRICULTURE GROUP 四川德康農牧食品集團股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代碼：2419） 公告 持續關連交易及須予披露交易 修訂持續關連交易 獨立董事委員會及獨立股東的獨立財務顧問 修訂持續關連交易 茲提述招股章程及2024年年報，內容有關(i)本公司與特驅農牧訂立的特驅飼料供 應框架協議，(ii)本公司分別與廣安萬千、貴港萬千、內江萬千及西昌萬千訂立的 萬千飼料供應框架協議及(iii)本公司與新津希望訂立的新津希望飼料供應框架協 議。 – 1 – 隨著本集團持續發展，基於對現行需求及經營狀況的估計，本公司預計截至2025 年12月31日止年度特驅飼料供應框架協議、萬千飼料供應框架協議及新津希望飼 料供應框架協議項下交易的交易金額將超過現有年度上限。因此，於2025年8月 15日（交易時段後），本公司與特驅農牧訂立特驅飼料供應框 ...

Group 1 - The company reported a revenue of RMB 11.695 billion for the six months ending June 30, 2025, representing a year-on-year increase of 24.33% [1] - The profit attributable to equity shareholders was RMB 1.292 billion, a decrease of 26.83% year-on-year, with basic earnings per share of RMB 3.32 [1] - The increase in revenue was primarily driven by the pig farming segment, which generated RMB 9.879 billion, a year-on-year growth of 32.6%, with sales volume reaching 5.1174 million pigs, up 27.1% [1] Group 2 - The auxiliary products segment reported revenue of RMB 481 million, a year-on-year increase of 16.1%, with a slaughter volume of 249,000 pigs, up 18.5% [2] - The company has two subsidiaries focused on slaughtering operations, which recently received certification for quality management in pig slaughtering [2] - The overall gross margin improved from 12.4% in the first half of 2024 to 17.4% in the first half of 2025, attributed to the expansion of new-style family farms and reduced production costs due to lower feed prices [2]

德康农牧(2419.HK)公布，截至今年6月底止，半年收入116.95亿元，同比上升24.33%；盈利12.92亿元， 同比减少26.83%；每股盈利3.32元；不派中期息。 本文源自：金融界AI电报 ...

智通财经APP讯，德康农牧(02419)发布公告，现任非执行董事刘珊女士已获委任为本公司提名委员会 (提名委员会)的成员，自2025年8月15日起生效。王德辉先生自同日起停止担任提名委员会成员。 ...