Investment Rating - The report maintains a "Recommended" rating for the chemical industry [1] Core Views - The chemical industry is expected to benefit from the ongoing "anti-involution" measures, which may lead to a significant slowdown in global chemical capacity expansion. This shift is anticipated to enhance cash flow and dividend yields for companies in the sector, transforming them from cash-consuming entities to cash-generating ones [7][27] - The report highlights the potential for domestic substitutes for Japanese semiconductor materials due to rising tensions in Sino-Japanese relations, which could accelerate the domestic market's growth in this area [6] Summary by Sections Recent Trends - The chemical industry has shown a relative performance increase of 16.1% over the past 12 months, outperforming the CSI 300 index, which increased by 11.6% [4] Key Price Movements - DMC (Dimethyl Carbonate) prices rose to 4400 CNY/ton, up 14.29% week-on-week, driven by strong demand from the electrolyte sector [14] - Lithium battery electrolyte prices increased to 27000 CNY/ton, up 8.00% week-on-week, although profit margins for manufacturers are under pressure due to rising raw material costs [14] - Diammonium phosphate prices in East China reached 3850 CNY/ton, up 5.48% week-on-week, amid rising production costs [14] Investment Opportunities - The report identifies four key opportunities in the chemical sector: 1. Low-cost expansion, focusing on companies like Wanhua Chemical and Hualu Hengsheng [9] 2. Improved industry conditions, particularly in chromium salts and phosphate rock [10] 3. New materials with high growth potential, such as electronic chemicals and aerospace materials [11] 4. High dividend yields from state-owned enterprises in the chemical sector, including China Petroleum and China National Chemical [11] Company Tracking and Earnings Forecast - The report provides a detailed earnings forecast for key companies, indicating a positive outlook for several firms in the chemical sector, with many rated as "Buy" [28]

Core Viewpoint - Meihua Biological has been sued by Ajinomoto Co., Ltd. for allegedly infringing on two of its patents related to the production of L-glutamate and L-amino acids, with claims for significant financial damages totaling RMB 260 million [1][3]. Group 1: Legal Proceedings - Ajinomoto has filed a lawsuit in the Guangdong High Court, claiming that Meihua Biological and its subsidiaries have infringed on its patents during the production and sale of monosodium glutamate [1][3]. - The lawsuit requests an immediate cessation of the alleged infringing activities, destruction of equipment used for production, and compensation for economic losses amounting to RMB 130 million for each patent [3]. Group 2: Company Operations and Financial Performance - Meihua Biological maintains that its operations are normal and that it will actively respond to the lawsuit, emphasizing its commitment to protecting its and its shareholders' legal rights [4][7]. - The company has faced declining revenues and net profits in 2023 and 2024, with a reported net profit of RMB 3.025 billion in the first three quarters of 2025, reflecting a year-on-year increase of 51.61%, despite a revenue decline of 2.49% to RMB 18.215 billion [4][7]. Group 3: Corporate Governance and Market Impact - The company has stated that the legal issues involving its major shareholder, Meng Qingshan, who was sentenced for market manipulation, do not affect its operations or governance structure, as he has not held any position in the company since January 2017 [7]. - Following the announcement of the lawsuit and the shareholder's legal troubles, Meihua Biological's stock price fell by 2.35%, closing at RMB 10.37 per share, with a total market capitalization of RMB 29.08 billion [7].

Core Insights - The global amino acid industry has undergone three key technological iterations since its industrialization in the early 20th century, with Japan historically leading the technology direction through companies like Ajinomoto and Degussa [1] - China's amino acid industry, initially constrained by reliance on imported core strains and lack of patents, is now shifting the global technology focus towards itself due to rapid advancements in synthetic biology and technological innovations [1][2] - The acquisition of the amino acid business from Kyowa Hakko by Meihua Biotechnology marks a significant transfer of technology and capabilities, allowing Chinese companies to enter the high-margin pharmaceutical amino acid market [2][4] Industry Dynamics - The decline of Japan's fermentation industry and the migration of technology have accelerated the shift of industry leadership towards China, with Japanese companies unable to sustain higher investments due to rigid cost structures and market contraction [1][3] - Meihua Biotechnology's acquisition provides it with a complete technical system for pharmaceutical-grade amino acids, including chassis strains and quality systems, positioning it strongly in a market where Kyowa Hakko holds over 40% market share in critical amino acids [2][3] - The Chinese amino acid industry is expected to expand its production capacity significantly, with lysine production projected to reach 3.47 million tons and output at 2.82 million tons in 2024, reflecting over a 50% increase from five years ago [2] Global Supply Chain Changes - China's amino acid exports have increased for five consecutive years, with lysine exports expected to reach 1.1062 million tons in 2024, accounting for nearly 40% of total production [3] - The global market is increasingly reliant on China's supply chain for cost, supply security, and high-end product demands, indicating a shift from a "China-Japan-Korea triangle" to a "China dual-pole" supply structure [3] - The transfer of technological sovereignty is expected to further alter the competitive landscape of the global amino acid industry, with Chinese companies gaining a dominant position in the market [3][4] Competitive Landscape - The amino acid industry has traditionally been characterized by cyclicality and cost competition, but the current technological transformation emphasizes the importance of comprehensive production capabilities [4] - Meihua Biotechnology's acquisition of Kyowa Hakko's pharmaceutical-grade products positions it at the core of the global pharmaceutical amino acid supply chain, showcasing a pathway for Chinese companies to achieve technological leaps through mergers and acquisitions [4]

证券代码：600873 证券简称：梅花生物 公告编号：2025-058 梅花生物科技集团股份有限公司 关于公司及子公司涉及诉讼的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者重大遗 漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 公司于近日收到广东省高级人民法院（以下简称"广东高院"）送达的《应 诉通知书》《民事起诉状》等文件，现公告如下： 一、本次诉讼的基本情况 公司于近日收到广东高院受理的由日本味之素株式会社(以下简称"味之素") 提起的侵害专利权的《民事起诉状》等文件，具体如下： （一）案号：（2025）粤知民初 5 号 原告：味之素株式会社 被告：公司及全资子公司通辽梅花、新疆梅花、吉林梅花 1.诉讼请求 （1）判令被告立即停止侵犯原告 200580045189.5 号专利权的制造、销售、 使用、许诺销售侵权行为，并销毁专用于生产被控侵权产品的设备，以及销毁所 有库存侵权产品； （2）判令被告连带赔偿原告因侵犯 200580045189.5 号专利权而造成的经济 损失共计人民币 1.3 亿元； （3）判决被告承担本案的诉讼费用。 1 2.诉讼事由 原 ...

Core Viewpoint - MeiHua Bio's stock experienced a decline of 2.07% on November 21, with a trading price of 10.40 CNY per share and a total market capitalization of 29.164 billion CNY [1] Financial Performance - For the period from January to September 2025, MeiHua Bio reported a revenue of 18.215 billion CNY, representing a year-on-year decrease of 2.49%. However, the net profit attributable to shareholders increased by 51.61% to 3.025 billion CNY [2] Shareholder Information - As of September 30, 2025, the number of shareholders for MeiHua Bio reached 66,700, an increase of 13.10% from the previous period. The average number of circulating shares per shareholder decreased by 13.09% to 42,058 shares [2] Dividend Distribution - Since its A-share listing, MeiHua Bio has distributed a total of 12.047 billion CNY in dividends, with 4.075 billion CNY distributed over the past three years [3] Major Shareholders - As of September 30, 2025, Hong Kong Central Clearing Limited was the second-largest circulating shareholder, holding 98.9229 million shares, an increase of 18.3366 million shares from the previous period. New shareholders include Guotai CSI Livestock Breeding ETF and Southern S&P China A-share Large Cap Dividend Low Volatility 50 ETF [3]

Group 1: Oil and Gas - The oil supply-demand situation is under short-term pressure due to OPEC+ production increases, but medium to long-term oil prices are expected to have bottom support, with Brent crude oil price forecasts for 2025 and 2026 at $68 and $62 per barrel respectively [2][46] - The demand for natural gas in China is expected to continue growing, supported by low import costs, which will enhance profitability in the domestic industry chain [49] Group 2: Bulk Chemicals - A turning point in capital expenditure growth in the chemical raw materials and products industry has been observed since the second half of 2025, with expectations for a new round of recovery in 2026 driven by domestic demand improvements and export support [3][54] - The supply-demand situation for bulk chemical products is expected to improve, with policies supporting supply optimization and demand recovery anticipated to lead to a new round of prosperity [9][54] Group 3: Chemical Products and Fine Chemicals - The recovery in demand for chemical products and fine chemicals is expected to continue, driven by growth in sectors such as automotive, home appliances, military, and electronics, alongside cost improvements in raw materials [4][54] - The chemical industry is likely to see ongoing development in new materials and technologies, with a focus on high-end supply enhancement as emphasized in national policies [4][24] Group 4: Recommended Companies - The report recommends several companies for investment, including China Petroleum (A/H), China National Offshore Oil Corporation (A/H), and various chemical companies such as LUXI Chemical, Hualu Hengsheng, and Wanhua Chemical, indicating their potential for value reassessment and growth [7][23][24]

Core Insights - The swine industry is experiencing significant losses, with the average selling price of live pigs dropping to 11.56 yuan/kg, leading to a loss of 71.95 yuan per head for self-bred pigs [1] - Analysts suggest that the current oversupply and weak demand may result in a "non-peak" season for pork prices in Q4, indicating potential investment opportunities in the sector [1] - The industry is expected to undergo capacity reduction, which may lead to an upward adjustment of pork price levels by 2026, benefiting low-cost producers [1] Group 1: Market Performance - As of November 18, 2025, the China Livestock Breeding Index (930707) showed mixed performance among its constituent stocks, with Muyuan Foods (002714) leading with a 0.43% increase [1] - The Livestock ETF (516760) was quoted at 0.7 yuan [1] - The top ten weighted stocks in the index accounted for 65.58% of the total index weight, indicating a concentration in a few key players [2] Group 2: Stock Performance - The stock performance of key companies includes: - Muyuan Foods (002714): +0.43%, weight 11.37% - Haida Group (002311): +0.34%, weight 9.52% - Biological Shares (600201): +0.25%, weight 3.91% - Other notable declines include New Hope (000876): -1.01% and Tian康 Biological (002100): -1.96% [4]

Investment Rating - The industry rating is "Recommended" [3] Core Insights - The report highlights the ongoing challenges in the pork market, with prices experiencing a downward trend, currently at 11.90 CNY/kg, a decrease of 1.18% week-on-week. The market is characterized by a supply-demand tug-of-war, with large-scale pig farms adopting strategies to control supply and increase prices [2][12] - The report emphasizes the importance of the seed industry revitalization action plan, aiming for high-quality development during the 14th Five-Year Plan period, focusing on technological self-reliance and independent control of seed sources [1][11] - The report suggests that the commercialization of genetically modified crops will accelerate, significantly impacting yield improvements and self-sufficiency rates for key varieties [1][11] Summary by Sections Planting Industry Chain - The Ministry of Agriculture and Rural Affairs held a meeting to promote the revitalization of the seed industry, emphasizing the need for high-quality development and technological independence. Key actions include improving seed quality, protecting intellectual property, and enhancing biosecurity measures [1][11] - Recommended companies in the planting sector include Beidahuang and Suqian Agricultural Development, with a focus on leading seed companies like Dabeinong and Longping High-Tech [1][11] Swine Farming - The average price of live pigs is reported at 11.90 CNY/kg, with a notable decrease in losses for self-bred pigs to 114.81 CNY per head and 205.64 CNY for purchased piglets. The industry is still in a loss-making state but is seeing a reduction in losses compared to previous weeks [2][12] - The report anticipates a long-term upward adjustment in domestic pig prices, driven by policy guidance aimed at improving quality and efficiency in the industry [2][12] - Recommended stocks in the swine sector include companies like Muyuan Foods, Wens Foodstuff Group, and DeKang Agriculture [2][12] Key Agricultural Product Data Tracking - Corn: The average price is 2256.27 CNY/ton, up 0.92% week-on-week [25] - Wheat: The average price is 2485.11 CNY/ton, down 0.15% week-on-week [28] - Soybeans: The average price is 4011.58 CNY/ton, up 0.10% week-on-week [40] - Cotton: The average price is 14640.00 CNY/ton, up 0.10% week-on-week [45]

Core Viewpoint - The pig farming industry is experiencing significant losses, leading to accelerated capacity reduction, while the dairy market faces supply-demand imbalances, impacting livestock numbers and prices [1][2]. Group 1: Pig Farming Industry - The pig farming sector has been in a state of continuous loss for several weeks, with the national average price of commercial pigs dropping by 28% year-on-year in Q3 2025, and major listed pig companies seeing a 68% decline in net profit [1]. - Current asset-liability ratios in the industry are well-controlled, but there is a noticeable divergence between the growth rate of pig sales and cost control, indicating a shift from cyclical to efficiency-driven competition [1]. - Due to ongoing losses and policy guidance, it is expected that capacity reduction will accelerate, laying the groundwork for a future price recovery [1]. Group 2: Dairy and Beef Market - Dairy prices have fallen below the previous cycle's bottom, highlighting a significant supply-demand imbalance, with dairy cow inventory decreasing by over 8% cumulatively in October [1]. - The beef market is entering an upward price trend, with expectations of price fluctuations in November and December due to the winter consumption peak [1]. - Long-term projections suggest that the beef cycle's price increase may exceed expectations, particularly benefiting companies with cow resources [1]. Group 3: Index and Stock Performance - The CSI Livestock Breeding Index (930707) shows mixed performance among its constituent stocks, with Tianma Technology (603668) leading with a 5.06% increase, while Jinnong (002548) is the biggest loser [1]. - As of October 31, 2025, the top ten weighted stocks in the CSI Livestock Breeding Index account for 65.58% of the index, with Muyuan Foods (002714) and Wens Foodstuffs (300498) being the largest components [2]. - The performance of the top ten stocks varies, with Muyuan Foods down 3.63% and Wens Foodstuffs down 2.10% [3].

Group 1 - The China Livestock Breeding Index (930707) increased by 0.43% as of November 13, 2025, with notable gains in constituent stocks such as Bio-Stock (600201) up 8.27%, Huaying Agriculture (002321) up 4.82%, and others [1] - The price difference between standard pigs and fat pigs is currently larger than the same period last year, with a standard fat price difference of -0.68 yuan/kg as of November 7, indicating potential seasonal benefits for fat pigs as temperatures drop [1] - The weekly slaughter volume in the downstream market has shown a slight recovery of 0.27% compared to the previous week, suggesting a stabilization in demand [1] Group 2 - As of October 31, 2025, the top ten weighted stocks in the China Livestock Breeding Index accounted for 65.58% of the index, including companies like Muyuan Foods (002714) and Wens Foodstuff Group (300498) [2] - The index tracks companies involved in livestock feed, veterinary drugs, and livestock farming, reflecting the overall performance of listed companies in the livestock breeding sector [2]