Investment Rating - Industry rating: Recommended [3] Core Insights - The pork price is rising due to the peak consumption season, and there is an expectation for accelerated destocking after the holiday [2][12] - The Ministry of Agriculture and Rural Affairs emphasizes the importance of agricultural modernization and the commercialization of genetically modified crops to enhance yield and self-sufficiency [1][11] - The report highlights the profitability recovery in pig farming, with self-breeding and purchased piglets turning profitable, indicating a short-term challenge for capacity destocking [2][12] Summary by Sections Planting Industry Chain - The Ministry of Agriculture and Rural Affairs is supporting Shandong province in enhancing grain production and agricultural modernization, focusing on technology and innovation [1][11] - Key recommended stocks in the planting sector include Beidahuang and Suqian Agricultural Development, with a focus on genetically modified seed companies like Dabeinong and Longping High-Tech [1][11] Swine Farming - The average price of live pigs is 12.72 CNY/kg, with a week-on-week increase of 1.26% [2][12] - The number of breeding sows is 39.9 million, showing a decrease of 1.1% month-on-month and 2.1% year-on-year, indicating a steady adjustment in production capacity [2][12] - Recommended stocks in the swine sector include Muyuan Foods, WH Group, and others, with a focus on companies that show significant cost improvements and high future output elasticity [2][12]

Investment Rating - The report provides an "Increase" rating for the industry, indicating a positive outlook compared to the Shanghai and Shenzhen 300 Index [46]. Core Insights - The report highlights the strengthening of pig prices, with a current price of 12.69 CNY/Kg, reflecting a week-on-week increase of 0.20 CNY/Kg. Factors contributing to this trend include a decrease in sales plans for January and the anticipated impact of a nationwide cold wave starting January 19, which may further boost prices [5][10]. - In the planting sector, corn and soybean prices have shown stability, with corn prices at 2364 CNY/ton (up 0.5% week-on-week) and soybean prices at 4072 CNY/ton (up 0.6% week-on-week). The report expresses optimism for the recovery of planting sector profitability [3][10]. - The pet industry is experiencing increased attention due to major exhibitions, with significant events scheduled in March 2026, which are expected to catalyze new product launches from leading domestic brands [4]. Summary by Sections Livestock - The report notes that pig prices are on the rise, with a current price of 12.69 CNY/Kg, up 1.60% week-on-week and 10.06% month-on-month, although down 19.33% year-on-year. The report suggests that the cold wave and increased demand during the lunar month will be key factors influencing future price movements [5][10]. - Recommended stocks in the livestock sector include Muyuan Foods, Wens Foodstuffs, and others, with a focus on companies that are expected to benefit from the recovery in pig prices [5][40]. Planting - The report indicates that corn and soybean prices are stable, with corn at 2364 CNY/ton and soybeans at 4072 CNY/ton. The planting sector is expected to see a recovery in profitability, particularly benefiting seed companies that focus on high-quality products [3][10]. Pet Industry - Major pet exhibitions are set to take place in March 2026, which are expected to enhance market interest and lead to new product launches from top brands. The report emphasizes the potential for growth in the pet sector due to these events [4][10]. Key Company Coverage - The report includes earnings forecasts and valuations for key companies in the industry, with all covered companies receiving an "Increase" rating. Notable companies include Muyuan Foods, Wens Foodstuffs, and various firms in the pet and agricultural sectors [40].

Group 1 - The company, Longping High-Tech, has demonstrated strong operational resilience in the face of industry downturns over the past two years [2] - The company's governance is well-structured, and its core competitiveness is prominent [2] - Longping High-Tech's long-term value has been consistently recognized by patient capital and investment institutions [2]

Core Viewpoint - Longping High-Tech has been awarded the Special Prize of the CITIC Group Science and Technology Award for its project on "Key Technology Innovation and Application of High-Efficiency Breeding for Rice Blast Resistance," highlighting significant technological breakthroughs and application value in rice breeding [1]. Group 1: Technological Innovations - The project addresses core challenges in rice breeding, such as the difficulty in coordinating disease resistance with high yield and quality traits, long breeding cycles, and narrow resistance spectra [1]. - A multi-dimensional rice blast resistance identification platform has been developed, achieving large-scale and precise identification of rice materials. The proportion of rice breeding materials with blast resistance increased from 64.9% during the 13th Five-Year Plan to 82.9% during the 14th Five-Year Plan [1]. Group 2: Breeding Efficiency and Outcomes - A new rice blast resistance breeding technology system has been established, significantly improving breeding efficiency. The proportion of disease-resistant hybrids in the testing phase rose from an average of 69.0% during the 13th Five-Year Plan to 90.2% during the 14th Five-Year Plan [2]. - The breeding cycle for disease-resistant varieties has been reduced from 8-10 years to 4-5 years, while achieving simultaneous improvement in multiple traits [2]. - A total of 10 disease-resistant, high-quality hybrid rice parents have been created, resulting in 174 new disease-resistant, high-yield hybrid rice varieties. These varieties have been promoted over 1,126,200 acres, increasing rice production by 240 million kilograms, reducing pesticide use by 676,000 kilograms, and generating savings of 710 million yuan for farmers and 700 million yuan in revenue for enterprises [2].

Investment Rating - The report maintains a "Recommendation" rating for the agricultural sector, indicating a positive outlook for the industry fundamentals [14]. Core Insights - The USDA's January report revises global corn, soybean, and wheat production forecasts upwards, suggesting a more favorable supply situation for these crops [14]. - The report highlights a significant narrowing of the global corn supply-demand gap, with total demand expected to reach a record 1.3 billion tons for the 2025/26 season [1][2]. - Global wheat supply is projected to be ample, with an increase in the ending stock-to-use ratio, which is expected to rise to 33.8% for the 2025/26 season [7][8]. - The soybean market is characterized by a slight increase in global production expectations, primarily driven by favorable conditions in Brazil and the U.S., despite a minor downward adjustment in China's production [10][11]. Summary by Sections Corn - The USDA report revises the 2025/26 global corn production forecast upwards by approximately 13.05 million tons to 1.296 billion tons, a 5.3% increase year-on-year [1]. - The U.S. corn production is adjusted to a record 170 million bushels, reflecting a 14.3% increase from the previous year [2]. - The global corn ending stock-to-use ratio is projected at 22.4%, down 1.16 percentage points from the previous year [1][5]. Wheat - The global wheat production forecast is raised by about 4.36 million tons to 842 million tons for the 2025/26 season, a 5.2% year-on-year increase [7]. - The report indicates a total global wheat consumption increase of 0.11% year-on-year, with a projected surplus of 18.26 million tons [7][8]. - The ending stock-to-use ratio for wheat is expected to increase to 33.8%, reflecting a more comfortable supply situation [7][8]. Soybeans - The global soybean production forecast is increased by approximately 3.14 million tons to 426 million tons for the 2025/26 season, despite a slight decrease in China's production [10][12]. - U.S. soybean production is adjusted to 116 million tons, a 2.6% decrease year-on-year, while total consumption is expected to rise by 5.6% [11][13]. - The global soybean ending stock-to-use ratio is projected at 29.4%, down 0.44 percentage points from the previous year [10][12].

Core Insights - The company, Longping High-Tech, announced that 43 rice varieties, 20 corn varieties, and 1 cotton variety have been approved by the National Crop Variety Approval Committee, enhancing its competitive edge in the agricultural sector [1][2]. Rice Varieties - The newly approved rice varieties show significant improvements in comprehensive traits, with trial yields increasing by over 5%, and they exhibit resistance to rice blast and planthoppers, while achieving quality standards of level three or above [1]. - 50% of the approved rice varieties meet quality standards of level two or above, with the Zhenliangyouxiang 85 variety achieving level one and surpassing Thai fragrant rice in taste evaluation, scoring 93.7 points [1]. - The structure of rice varieties is becoming more diversified, with early-maturing varieties successfully filling gaps in the market, thereby enhancing industry competitiveness [2]. - Collaborative efforts with universities have led to the development of 10 new rice varieties resistant to planthoppers, supporting the green transformation of agriculture [2]. Corn Varieties - The company has introduced high-yield corn varieties, with nine varieties such as H516 and Longchuang 529 showing yield increases of over 10% [3]. - New varieties with resistance to diseases like stalk rot and ear rot have emerged, with varieties like Longxi 527 and Zhongke 620 achieving medium resistance levels while maintaining high yields [3]. - The introduction of easy-harvest corn varieties continues to grow, with varieties like Zhongke 505 and Cuizhu 610 being suitable for mechanical harvesting and demonstrating resilience to low nitrogen, high temperatures, and drought [3]. - The approval of these new corn varieties strengthens the company's product matrix and regional layout, providing robust support for sustainable development [3].

Core Viewpoint - The company, as the seventh largest seed company globally and the largest domestic ethnic seed industry leader, is experiencing a stock price that remains below 10 yuan, which contrasts sharply with market expectations of a valuation between 20 to 30 yuan. The company attributes this discrepancy to various factors including market sentiment, industry dynamics, macroeconomic conditions, and its own operational status [1]. Group 1 - The company's performance has shown resilience despite the cyclical downturn in the industry over the past two years [1]. - The stock price is influenced by multiple factors, including market sentiment, industry dynamics, macroeconomic conditions, and the company's operational status [1]. - The company emphasizes the importance of food security and adheres to relevant policies and regulations in its research and promotion of genetically modified organisms (GMOs) [1]. Group 2 - To address inventory reduction, the company is enhancing operational efficiency, optimizing supply chain management, and improving inventory structure to accelerate inventory turnover and capital utilization [1]. - The company plans to improve the quality and transparency of information disclosure and engage in investment communication activities to help investors better understand its business and value [1]. - Specific actions to enhance valuation and return to shareholders include improving the profitability of currently loss-making core businesses, releasing the value of strategic assets, disposing of non-core low-efficiency assets, and promoting synergy among various business units for high-quality development [1].

Group 1 - The company, Longping High-Tech, responded to investor inquiries on January 13, indicating that stakeholders should continue to monitor official announcements and the company's public media channels for the latest and most accurate information regarding its technological achievements [2]

Core Viewpoint - The company demonstrates resilience in its performance despite the cyclical downturn in the industry over the past two years, influenced by market sentiment, industry dynamics, macroeconomic factors, and its own operational conditions [1] Group 1: Company Strategy - The company prioritizes food security and adheres strictly to relevant policies and regulations in its variety research and promotion of transgenic commercialization [1] - The company is enhancing operational efficiency, optimizing supply chain management, and improving inventory structure to accelerate inventory turnover and capital utilization [1] Group 2: Financial Communication and Asset Management - The company is improving the quality and transparency of its information disclosure and conducting investment communication activities to help investors better understand its business and value [1] - The company aims to enhance the profitability of its main business, which is currently operating at a loss, and to unlock the value of strategic assets [1] - The company is focusing on "streamlining" by disposing of non-core low-efficiency assets to improve asset quality and profitability [1] - The company is promoting integration among various business segments to release greater synergy value, achieving high-quality development across its operations and better reflecting its overall market value [1]

Investment Rating - The industry rating is "Recommended" [4] Core Views - The sentiment in the pork market has significantly improved, with a notable reduction in losses for pig farming. The average price of live pigs is currently 12.55 CNY/kg, remaining stable week-on-week. The number of breeding sows has decreased by 1.1% month-on-month and 2.1% year-on-year, indicating a steady adjustment in pig production capacity [2][12] - The Ministry of Agriculture and Rural Affairs has initiated a nationwide inspection of winter crop seeds to ensure safety for the upcoming spring and summer planting seasons. This includes a focus on key crops such as corn, rice, soybeans, cotton, and vegetables. The commercialization of genetically modified seeds is expected to accelerate, enhancing self-sufficiency rates for critical varieties [1][11] Summary by Sections Planting Industry Chain - The Ministry of Agriculture is conducting inspections to ensure seed quality and compliance, which is crucial for agricultural production safety. The emphasis on genetically modified technology is expected to revolutionize yield improvements, with companies like Beidahuang and Suqian Agricultural Development likely to benefit [1][11] Pig Farming - The average price of live pigs is 12.55 CNY/kg, with a slight increase in slaughter volume by 17.4% year-on-year. The market sentiment has improved significantly, with a reduction in losses for self-bred and purchased pig farming, indicating a potential for recovery in the sector. Recommended stocks include companies like Muyuan Foods and Wens Foodstuffs [2][12] Key Agricultural Product Data Tracking - Corn: The average price is 2353.51 CNY/ton, with a slight increase of 0.09% week-on-week. The international price is 5.21 USD/bushel, up 2.11% [26][27] - Wheat: The domestic average price is 2513.62 CNY/ton, down 0.09% week-on-week. The international price is 5.82 USD/bushel, down 0.13% [29][31] - Soybeans: The domestic average price is 4048.42 CNY/ton, up 0.63% week-on-week. The international price is 405.95 USD/ton, up 0.74% [39][43] - Cotton: The average price in Xinjiang is 15530.00 CNY/ton, up 0.84% week-on-week [45][49] Feed and Vitamin Prices - The average price of pig feed is 2.64 CNY/kg, with a week-on-week increase of 0.76%. The prices for chicken feed and egg-laying hen feed remain stable [52][54]