Investment Rating - The report assigns a rating of "Buy" to the company, with a market price of RMB 9.55 and a sector rating of "Outperform" [1]. Core Insights - The report highlights that Longping High-Tech is a leading player in the domestic seed industry, with a well-established industrial layout and a focus on high-quality development. The company's research capabilities are industry-leading, and its asset quality is continuously improving, leading to a positive outlook for its medium to long-term development [2][5]. Financial Performance - The company is expected to achieve revenues of RMB 85.8 billion, RMB 92.2 billion, and RMB 99.3 billion for the years 2025 to 2027, reflecting year-on-year growth rates of +0.1%, +7.5%, and +7.7% respectively. The net profit attributable to shareholders is projected to be RMB 2.0 billion, RMB 3.1 billion, and RMB 4.5 billion for the same years, with growth rates of +71.4%, +57.6%, and +46.8% respectively. The current market capitalization corresponds to P/E ratios of 71.9X, 45.6X, and 31.1X for the years 2025 to 2027 [6][8]. Company Overview - Longping High-Tech, established in 1999 and listed in 2000, is recognized as a modern high-tech seed enterprise. The company has a comprehensive business structure that includes seed operations and agricultural services, focusing on major crops such as rice, corn, and wheat, as well as specialized crops like cucumbers and sunflowers [16][18]. Research and Development - The company leads the industry in R&D investment, with RMB 6.9 billion allocated in 2024, representing 9.1% of its revenue. The number of dedicated R&D personnel reached 712, accounting for 17.02% of the total workforce. The company has significantly increased its plant variety applications, with 113 authorized in 2024 compared to just 12 in 2016 [31][39]. Market Position - Longping High-Tech holds a dominant position in the seed market, with a market share of 42% in corn seeds and 36% in rice seeds. The company is actively expanding its international presence, particularly in Brazil, where it ranks among the top three corn seed companies [17][44]. Strategic Acquisitions - The company has accelerated its acquisition strategy since the entry of CITIC Group as a major shareholder in 2016, enhancing its market position and operational capabilities through various acquisitions in the seed industry [28][30].

Group 1 - The genetically modified concept sector rose by 1.58%, ranking 7th among concept sectors, with 14 stocks increasing, including Shennong Agricultural which hit the daily limit up by 20% [1] - Leading stocks in the sector included Top Cloud Agriculture and Dunhuang Seed Industry, which increased by 3.52% and 2.28% respectively [1] - The stocks with the largest declines were Xin'an Co., Yingtai Biology, and Huabang Health, which fell by 2.22%, 1.75%, and 1.04% respectively [1] Group 2 - The genetically modified concept sector saw a net inflow of 434 million yuan, with 8 stocks receiving net inflows, led by Shennong Agricultural with a net inflow of 470 million yuan [2] - Other notable net inflows included Nongfa Seed Industry, Top Cloud Agriculture, and Longping High-Tech, with net inflows of 28.77 million yuan, 15.94 million yuan, and 5.94 million yuan respectively [2] - The net inflow ratios for Shennong Agricultural, Nongfa Seed Industry, and Top Cloud Agriculture were 15.99%, 8.23%, and 5.99% respectively [3] Group 3 - The trading volume and turnover rates for leading stocks in the genetically modified sector were significant, with Shennong Agricultural showing a turnover rate of 51.33% and a daily increase of 20.07% [3] - Other stocks like Nongfa Seed Industry and Top Cloud Agriculture had turnover rates of 4.70% and 9.08% respectively, with daily increases of 1.62% and 3.52% [3] - Stocks such as Huabang Health and Xin'an Co. experienced declines in both net inflow and turnover rates, indicating weaker market performance [4]

| 权益类证券大宗交易(协议交易) | | | | | | | | 团 下载 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 交易日期 | 证券代码 | 证券简称 | 成交价格 | 成交量 | 成交金额 买方营业部 | | 卖方营业部 | | | | | | (元) | (万股/万份) | (万元) | | | | | 2025-12-10 | 000998 | 隆平高科 | 9.46 | 100.00 | 946.00 中信证券股份有限 | | 中信建投证券股份 | | | | | | | | | 公司北京总部证券 | 有限公司长沙金星 | | | | | | | | | 標 山域 | 由致证类型小编 | | 12月10日，隆平高科大宗交易成交100万股，成交额946万元，占当日总成交额的6.57%，成交价9.46 元，较市场收盘价9.58元折价1.25%。 ...

| 交易日期 | 证券代码 | 证券简称 | 成交价值 (元) | 成交星 | 成交更额 买方营业部 (万元) | | 卖方营业部 | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | (万股/万份) | | | | | 025-12-09 | 866000 | 隆平高科 | 9.40 | 100.00 | 940.00 中信证券股份有限 | | 中信建投证券股份 | | | | | | | | 公司北京总部证券 | 有限公司长沙金星 | | | | | | | | 营补部 | 中路证券营业部 | | 权益类证券大宗交易 (协议交易) | | --- | | 证券简称 | | 成交价格 | | 成交量 | | 成交金额 | | お鳥日期 证券代码 3 | 12月9日，隆平高科大宗交易成交100万股，成交额940万元，占当日总成交额的5.25%，成交价9.4元， 较市场收盘价9.52元折价1.26%。 ...

Core Viewpoints - The report anticipates a significant reversal in the livestock cycle, recommending Hong Kong-listed dairy farming stocks as core investments [1][12] - The monthly recommended portfolio includes YouRan Agriculture, Modern Farming, and Muyuan Foods, which are leaders in their respective sectors [1][3] Livestock Sector - The livestock sector is expected to benefit from a cyclical rebound, with a focus on both beef and milk production, as domestic prices are projected to rise significantly by 2027 [14][40] - The report highlights that the domestic milk price has been in decline for nearly four years, leading to pressure on production capacity, while the beef-to-milk price ratio has reached historical highs, prompting faster culling of dairy cows [14][40] Swine Sector - The swine sector is experiencing a gradual recovery, with leading companies expected to benefit from improved cash flows and dividend potential as industry capacity contracts [1][15] - The report emphasizes that the current valuation of leading swine companies is at historical lows, indicating potential for valuation recovery [15][22] Poultry Sector - The poultry sector is seeing an increase in supply, with expectations for demand recovery, particularly in the white-feathered chicken segment, which is entering a consumption peak [24][30] - The report notes that the price of broiler chickens has shown a slight recovery, with a projected increase in profitability for leading poultry companies [24][30] Pet Sector - The pet industry is identified as a promising new consumption sector, benefiting from the rise of domestic brands and emotional consumer trends [16][20] - The report recommends leading pet food companies, which are expected to continue their growth trajectory due to product upgrades and direct sales transformations [20][16] Feed Sector - The feed sector is highlighted for its deepening industrialization and clear division of labor, with leading companies expected to widen their competitive advantages through technology and service [1][3] Agricultural Products - The report tracks agricultural product prices, noting that the price of corn has increased by 4% month-on-month, while soybean meal prices are at historical lows, indicating a potential for future recovery [2][22] - The report also mentions that the egg market is under pressure from supply increases, while the demand for soybeans is tightening in the medium to long term [2][18]

Core Insights - The report anticipates a significant reversal in the livestock cycle, particularly recommending Hong Kong-listed dairy farming stocks [1][12] - The monthly recommended portfolio includes YouRan Agriculture, Modern Farming, and Muyuan Foods, which are expected to benefit from the livestock cycle recovery [1][3] - The report highlights the expected upward trend in domestic beef and milk prices, suggesting a strong recovery in the performance of livestock companies [1][14] Livestock Sector - The livestock sector is projected to experience a major turnaround, with a focus on dairy farming stocks such as YouRan Agriculture and Modern Farming [1][14] - The report indicates that the domestic beef and milk markets are likely to see a price rebound, driven by a reduction in production capacity and improved demand dynamics [1][14] - The anticipated "meat-milk resonance" is expected to enhance profitability for dairy farming companies, with significant earnings recovery potential [1][14] Swine Sector - The swine sector is expected to see a gradual recovery in prices, with leading companies like Huazhong and Muyuan Foods positioned to benefit from valuation corrections [1][14] - The report notes that the cash flow of leading swine companies is improving, which may lead to higher dividend payouts in the future [1][15] - The current market conditions suggest that the swine industry is stabilizing, with a focus on maintaining reasonable breeding levels [22] Poultry Sector - The poultry sector is experiencing a slight increase in supply, with expectations for demand recovery to support price stabilization [24] - The report highlights that the white-feathered chicken market is showing signs of recovery, with prices expected to improve as the consumption season approaches [24] - Leading poultry companies are anticipated to maintain strong profitability amid changing supply dynamics [24] Pet Industry - The pet industry is identified as a promising growth area, with domestic brands gaining traction and expected to benefit from rising consumer sentiment [1][16] - The report emphasizes the potential for local pet food brands to capture market share, particularly in the high-end segment [1][16] - The performance of leading pet food companies is projected to remain strong, driven by product upgrades and direct sales strategies [20] Feed Sector - The feed sector is expected to benefit from deeper industrialization in livestock farming, with leading companies leveraging technological and service advantages [1][14] - The report indicates that feed prices are at historical lows, providing a strong cost support for livestock producers [1][14] - The anticipated tightening of supply-demand balance in the feed market is expected to lead to gradual price recovery [1][14] Agricultural Products - The report tracks agricultural product prices, noting that the price of live pigs was 11.25 yuan/kg at the end of November, down 10% month-on-month, while the price of 7kg piglets increased by 18% [2][22] - The report also highlights that corn prices have increased by 4% month-on-month, indicating a potential bottoming out in the market [2][22] - The overall agricultural sector is showing resilience, with the SW Agricultural Index outperforming the broader market [2][22]

Market Overview - The planting industry sector declined by 1.52% on December 5, with Zhongxing Junye leading the drop [1] - The Shanghai Composite Index closed at 3902.81, up 0.7%, while the Shenzhen Component Index closed at 13147.68, up 1.08% [1] Stock Performance - Notable gainers in the planting industry included: - Nongfa Seed Industry (600313) with a closing price of 6.86, up 4.41% on a trading volume of 557,500 shares and a turnover of 379 million yuan [1] - Yasheng Group (600108) closed at 3.21, up 3.55% with a trading volume of 570,600 shares and a turnover of 181 million yuan [1] - Shennong Seed Industry (300189) closed at 6.01, up 3.26% with a trading volume of 1.8744 million shares and a turnover of 1.119 billion yuan [1] Capital Flow - The planting industry sector experienced a net outflow of 46.43 million yuan from main funds, while retail investors saw a net inflow of 50.80 million yuan [2] - The main funds' net inflow for Yasheng Group was 31.62 million yuan, while it faced a net outflow of 26.11 million yuan from retail investors [3] - Hainan Rubber (601118) had a main fund net inflow of 13.49 million yuan, with retail investors contributing a net inflow of 907,370 yuan [3]

Group 1 - The company emphasizes its commitment to providing reasonable returns to investors and maintaining a stable profit distribution policy [1] - The profit distribution policy aims to balance the interests of all shareholders with the need for high-quality development of the company [1]

Core Viewpoint - The article highlights the innovative journey of Chinese seed companies, particularly focusing on the advancements made by Longping High-Tech in rice breeding and the broader context of China's seed industry revitalization efforts [1][3]. Group 1: Innovations in Rice Breeding - Longping High-Tech has achieved significant breakthroughs in rice breeding, including the new variety "Wei Liang You 2268," which has a maximum yield of 1174.5 kg per mu and strong resistance to pests and diseases [2]. - The company has established a commercial breeding system that integrates traditional breeding methods with modern biotechnology, reducing the breeding cycle from 8-10 years to 4-6 years [2]. Group 2: Industry Revitalization Efforts - The Chinese government has selected over 270 seed companies to form a robust national seed industry framework, aiming to address challenges and enhance innovation within the sector [3]. - Financial institutions have provided over 300 billion yuan in loans to seed companies, and research investment by crop seed companies has doubled since 2020, significantly boosting their development [3]. Group 3: Achievements and Market Position - In the past five years, Chinese seed companies have made notable advancements, with Longping High-Tech holding six of the top ten hybrid rice varieties in terms of promotion area for 2024 [4]. - Companies like Syngenta and Longping High-Tech rank third and eighth globally among seed companies, respectively, indicating a significant enhancement in the overall strength of the industry [4]. Group 4: Future Directions and Challenges - Despite progress, there is still a lack of high-quality varieties in the market, and the competitiveness of some domestic varieties remains below that of international counterparts [5]. - The "14th Five-Year Plan" emphasizes the need to enhance agricultural production capacity and quality, with a focus on cultivating world-class seed companies and fostering deep integration of industry and research [5].

Core Viewpoint - The article highlights the innovative journey of Chinese seed companies, particularly focusing on the advancements made by Longping High-Tech in rice breeding and the broader context of China's seed industry revitalization efforts [1][3]. Group 1: Company Innovations - Longping High-Tech has achieved significant breakthroughs in rice breeding, including the new variety "Wei Liang You 2268," which has a maximum yield of 1174.5 kg per mu and strong resistance to pests and diseases [2]. - The company has established a commercial breeding system that integrates traditional breeding methods with modern biotechnology, reducing the breeding cycle from 8-10 years to 4-6 years [2]. - Longping High-Tech has formed a research team of over 700 members and collaborates with multiple academicians and research institutions to enhance its breeding capabilities [1]. Group 2: Industry Developments - The revitalization of the seed industry in China is supported by the Ministry of Agriculture and Rural Affairs, which has selected over 270 seed companies to strengthen innovation and collaboration with financial and research institutions [3]. - In the past five years, Chinese seed companies have made notable progress in various fields, with Longping High-Tech dominating the top ten hybrid rice varieties in terms of area planted [4]. - The overall strength of seed companies has improved, with significant increases in research and development investments, and major projects being led by these companies [3][4]. Group 3: Future Outlook - The "14th Five-Year Plan" emphasizes enhancing agricultural production capacity and quality, with a focus on cultivating world-class seed companies [5]. - Future initiatives will concentrate resources on breeding innovation, encouraging collaboration between enterprises and research institutions, and promoting talent mobility [5].