Investment Rating - The industry rating is "Recommended" [3] Core Insights - The pork price center has significantly risen, leading to a notable reduction in industry losses. The average price of live pigs has increased to 12.51 CNY/kg, a week-on-week rise of 7.20% [2][13] - The agricultural sector is expected to maintain a good development momentum, with grain production projected to be high this year, including summer grain production of 299.48 billion jin and early rice production increasing by 6.8 billion jin, a growth of 1.2% [1][12] - The industry is currently in a supply-demand tug-of-war, with large-scale pig farms adopting strategies to control supply and raise prices, while demand is expected to improve with the arrival of warmer weather and the pickling season [2][13] Summary by Sections Planting Industry Chain - The agricultural sector is implementing key policies to support rural economic development, with a focus on achieving food security and enhancing crop yields through biotechnology [1][12] - Major beneficiaries in the planting sector include Beidahuang and Suqian Agricultural Development, while in the seed industry, companies like Dabeinong and Longping High-Tech are highlighted for their competitive advantages [1][12] Pig Farming - The pig farming industry is still experiencing losses, but there has been a significant reduction in losses compared to the previous week, with self-breeding farms reporting an average loss of 89.33 CNY per head, down nearly 100 CNY [2][13] - The industry is expected to undergo a process of capacity reduction, with a focus on improving quality and efficiency, leading to the gradual elimination of outdated production capacity [2][13] - Recommended stocks in the pig farming sector include companies like DeKang Agriculture, Jingji Zhino, and Muyuan Foods [2][13] Key Agricultural Product Data Tracking - Corn: The average price is 2241.67 CNY/ton, with a week-on-week decrease of 0.66% [27][28] - Wheat: The average price is 2482.11 CNY/ton, with a week-on-week increase of 0.87% [30][32] - Soybeans: The average price is 3996.84 CNY/ton, with a week-on-week increase of 0.06% [41][44] - Cotton: The average price in Xinjiang is 14660 CNY/ton, with a week-on-week increase of 0.15% [46][50] Feed and Vitamin Prices - The average price of pig feed is 2.6 CNY/kg, with a week-on-week decrease of 0.38% [53][55] - The average price of Vitamin E is 50.30 CNY/kg, with a week-on-week increase of 14.58% [62][63]

Summary of the Conference Call for Denghai Seed Industry Industry Overview - In 2025, the corn seed production area is expected to decrease to 3.6-3.8 million acres, primarily due to high inventory levels and increased demand for variety updates, with a market preference for high-density and disease-resistant varieties, maintaining historical high levels overall [2][7] - The overall industry destocking cycle is uncertain, potentially taking two to three years to recover from the low point, influenced by market trends and policy signals [2][8] Company Insights - Key transgenic varieties include 1,605D, 710D, 533D, and 685D, with 1,605D sales exceeding 1 million acres last year and expected to expand this year [2][9] - The retail price for transgenic varieties is approximately 65-70 yuan per acre, with pricing determined through negotiations with partners like Dabeinong and the Chinese Academy of Agricultural Sciences [2][10][11] - The company is focusing on the demand for high-density and disease-resistant varieties, launching new products like MY73 and developing new high-density varieties such as 997 for production trials [2][15] Financial Performance - The overall cost of corn seeds is trending downwards, with a decrease in per-acre production costs by several hundred yuan, although complete data will be available by the end of the year [5] - The company has seen a reduction in contract liabilities from January to September 2025, attributed to decreased prepayments due to sales issues [20] Market Dynamics - The sales progress for the new season is not fully disclosed yet, with significant sales expected to begin in November, which is typically the peak sales period [13] - The price trend for 2025 shows a decline for conventional corn varieties due to high inventory, while transgenic corn prices remain stable [14] Research and Development - The company has partnered with the Shandong Academy of Agricultural Sciences to develop biosafety certificate transformation bodies, ranking first in the industry, and plans to compete in trait segments [3][18] - There are plans to commercialize newly developed varieties, as self-use alone cannot meet demand [19] - The company has not yet ventured into gene editing but may consider it in the future, supported by local agricultural institutions [21] Future Outlook - The company is optimistic about the future of transgenic varieties like 605D, 685D, and 710D, which will require 1-2 years of trial planting before expanding sales [17] - The overall industry is expected to face changes in supply-demand dynamics, but the potential for conventional varieties with excellent resistance traits remains promising [22] Additional Information - Investors are encouraged to visit the company for further research and discussions [23]

Core Insights - The report indicates that the swine industry is entering a de-stocking cycle, while the beef cattle sector continues to experience an upward trend in demand and pricing [2][3] Group 1: Swine Industry - The swine sector is witnessing accelerated de-stocking driven by policy and market dynamics, presenting a good opportunity for investment [3][43] - As of Q3 2025, China's pig output reached 530 million heads, a year-on-year increase of 1.8%, with pork production at 43.68 million tons, up 3.0% year-on-year [10][13] - The average price of pigs in October 2025 dropped to 10.84 yuan/kg, a significant decline of 40.28% year-on-year, marking a new low for the year [10][13] Group 2: Beef Cattle Industry - The beef cattle supply is contracting, with the cycle of demand expected to continue its upward trajectory until 2027 [4][49] - In Q3 2025, the number of beef cattle in China was 99.32 million heads, a decrease of 2.4% year-on-year, while beef production reached 5.5 million tons, up 3.3% year-on-year [49][51] - The average price of beef in September 2025 was 70.52 yuan/kg, reflecting a year-on-year increase of 5.36% [59] Group 3: Poultry Industry - The white chicken sector is experiencing a gradual increase in demand, with the output of white feathered chickens expected to rise to 90.3 million heads in 2024, a year-on-year increase of 2.2% [94][98] - The rolling update of grandparent stock for white feathered chickens is projected to decline, which will support an increase in chicken prices in 2026 [100] Group 4: Seed Industry - Grain prices are expected to stabilize and rise due to various factors, including U.S.-China tariff disturbances and climate impacts [6] - The commercialization of genetically modified crops is anticipated to accelerate, supported by an increase in the number of approved varieties [6] Group 5: Pet Industry - The pet food export volume in China increased by 7.55% year-on-year from January to September 2025, indicating strong performance from leading companies [7] - Domestic pet consumption is expected to grow due to increasing companionship demand and emotional value associated with pet ownership [7]

Group 1 - Company Denge Seed Industry reported a revenue of approximately 514 million yuan for the first three quarters of 2025, a year-on-year decrease of 11.17% [1] - The net profit attributable to shareholders of the listed company was approximately 53.99 million yuan, a year-on-year decrease of 7.84% [1] - Basic earnings per share were 0.0614 yuan, reflecting a year-on-year decrease of 7.81% [1] Group 2 - As of the report, the market capitalization of Denge Seed Industry is 8.3 billion yuan [2]

Financial Performance - The company's operating revenue for Q3 2025 was ¥144,348,315.08, a decrease of 15.36% compared to the same period last year[4] - The net profit attributable to shareholders for Q3 2025 was ¥18,880,722.46, an increase of 222.86% year-on-year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥127,979.68, up 101.01% compared to the same period last year[4] - Total operating revenue for the period was RMB 513,680,531.14, a decrease of 11.16% compared to RMB 578,243,392.83 in the previous period[18] - Net profit decreased from 57.33 million to 49.41 million, a decline of approximately 13.77%[19] - Total comprehensive income attributable to the parent company decreased from 55.73 million to 53.99 million, a decline of about 3.11%[20] Assets and Liabilities - The total assets at the end of the reporting period were ¥5,089,740,564.63, representing a growth of 4.34% from the end of the previous year[4] - Cash and cash equivalents at the end of the period amounted to RMB 2,097,747,757.49, an increase from RMB 1,536,141,970.07 at the beginning of the period[15] - Total assets reached RMB 5,089,740,564.63, up from RMB 4,878,071,041.66 at the beginning of the period[17] - Total current liabilities increased to RMB 1,004,515,594.71 from RMB 853,571,255.63, reflecting a rise of 17.66%[17] - The company reported a total equity of RMB 3,970,242,955.22, slightly up from RMB 3,946,767,093.40 at the beginning of the period[17] - The company’s short-term borrowings increased to RMB 26,550,000.00 from RMB 20,550,000.00, indicating a rise of 29.68%[17] - The company’s long-term borrowings rose to RMB 7,400,000.00 from RMB 6,000,000.00, reflecting a growth of 23.33%[17] Cash Flow - The cash flow from operating activities for the year-to-date was ¥207,227,403.35, an increase of 72.93%[4] - Cash flow from operating activities decreased from 908.92 million to 795.74 million, a decrease of about 12.43%[21] - Cash flow from investing activities generated a net inflow of 257.99 million, compared to 132.86 million in the previous period, an increase of approximately 94.38%[22] - Cash and cash equivalents at the end of the period increased to 876.45 million from 663.78 million, an increase of about 32.06%[22] Operational Metrics - Total operating costs decreased from 585.68 million to 514.12 million, a reduction of approximately 12.14%[19] - Operating profit increased from 58.49 million to 65.11 million, representing an increase of about 11.00%[19] - Basic and diluted earnings per share decreased from 0.0666 to 0.0614, a decline of approximately 7.53%[20] - Research and development expenses decreased from 61.67 million to 56.92 million, a reduction of approximately 7.06%[19] - Other income increased from 29.55 million to 36.62 million, an increase of about 23.77%[19] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 65,758[11] Investment and Income - The investment income decreased by 30.77% year-on-year, primarily due to a reduction in interest income from financial products[8] - The asset disposal income increased by 922.44% compared to the same period last year, indicating higher gains from asset disposals[9] Contract Liabilities - The company's contract liabilities increased by 81.24% compared to the beginning of the period, attributed to sales prepayments received during the reporting period[7] - The company’s contract liabilities surged to RMB 738,215,464.35 from RMB 407,323,025.74, marking an increase of 81.01%[17] Research and Development - The company has developed a genetically modified corn transformation body LD05 in collaboration with Shandong Academy of Agricultural Sciences, which received a safety certificate from the Ministry of Agriculture and Rural Affairs[13]

Core Viewpoint - As of October 20, the number of shareholders for Denghai Seed Industry (002041) is reported to be 65,927 [1] Company Summary - The company has actively engaged with investors through an interactive platform, providing updates on shareholder numbers [1]

Investment Rating - The industry rating is "Recommended" [3] Core Views - The planting industry is focusing on enhancing crop yields and ensuring food security through advanced agricultural technologies and policies [1][12] - The pig farming sector is currently experiencing significant losses, with average losses per head reaching 244.70 yuan for self-bred pigs and 375.29 yuan for purchased piglets, indicating a need for capacity reduction [2][13] - The report anticipates a gradual recovery in pig prices due to government policies aimed at reducing breeding sow numbers and improving overall industry efficiency [5][13] Summary by Sections Planting Industry - The Ministry of Agriculture emphasized the importance of increasing crop yields and implementing comprehensive solutions tailored to specific regions and crops [1][12] - The report highlights the potential for genetically modified crops to significantly enhance yields and self-sufficiency in key varieties [1][12] - Recommended stocks in the planting sector include Beidahuang and Suqian Agricultural Development, with a focus on leading seed companies like Dabeinong and Longping High-Tech [1][12] Pig Farming - The average price of live pigs is reported at 11.14 yuan/kg, with a week-on-week decrease of 4.95%, reflecting an oversupply in the market [2][13] - The industry is facing deep losses, prompting a proactive reduction in production capacity, with a target to decrease the breeding sow population by approximately 1 million [5][13] - Recommended stocks in the pig farming sector include Muyuan Foods, Wens Foodstuff, and other companies with strong financial positions and cost improvements [5][13] Key Agricultural Products - Corn: The average price is 2276.08 yuan/ton, down 1.61% week-on-week [26] - Wheat: The average price is 2450.11 yuan/ton, up 0.30% week-on-week [29] - Soybeans: The average price is 3988.53 yuan/ton, with a slight increase of 0.03% [41] - Cotton: The average price is 14580 yuan/ton, down 0.98% week-on-week [45] Feed and Vitamin Prices - The average price of pig feed is 2.64 yuan/kg, down 0.75% week-on-week [52] - Vitamin E is priced at 43.10 yuan/kg, reflecting a significant decrease of 12.58% [52]

Market Overview - The planting industry sector rose by 0.33% on October 14, with Qiu Le Seed Industry leading the gains [1] - The Shanghai Composite Index closed at 3865.23, down 0.62%, while the Shenzhen Component Index closed at 12895.11, down 2.54% [1] Stock Performance - Qiu Le Seed Industry (code: 920087) closed at 18.10, up 6.16% with a trading volume of 169,200 shares and a transaction value of 294 million [1] - Other notable performers include: - Shen Nong Seed Industry (code: 681000E) at 4.81, up 2.78% with a volume of 2.06 million shares [1] - Zhongxing Fungi Industry (code: 002772) at 10.47, up 2.05% with a volume of 325,800 shares [1] - Dunhuang Seed Industry (code: 600354) at 6.56, up 2.02% with a volume of 496,000 shares [1] Capital Flow - The planting industry sector experienced a net outflow of 54.07 million from main funds, while retail funds saw a net inflow of 8.37 million [2] - The main funds' net inflow and outflow for specific stocks include: - Shen Nong Seed Industry: net inflow of 37.01 million [3] - Dunhuang Seed Industry: net inflow of 17.90 million [3] - Zhongxing Fungi Industry: net inflow of 17.41 million [3]

Core Viewpoint - The stock of Denghai Seeds has shown fluctuations, with a recent increase of 2.31% but a year-to-date decline of 10.32%, indicating potential volatility in the market [1]. Financial Performance - As of September 30, 2025, Denghai Seeds reported a revenue of 369 million yuan, a year-on-year decrease of 9.41%, and a net profit attributable to shareholders of 35.11 million yuan, down 33.42% compared to the previous year [2]. - Cumulative cash dividends since the company's A-share listing amount to 584 million yuan, with 57.2 million yuan distributed over the past three years [3]. Shareholder Information - The number of shareholders for Denghai Seeds as of September 30, 2025, is 65,800, reflecting a decrease of 1.49% from the previous period, while the average circulating shares per person increased by 1.51% to 13,382 shares [2]. - As of June 30, 2025, the top ten circulating shareholders include Hong Kong Central Clearing Limited, which holds 3.559 million shares, a decrease of 737,700 shares from the previous period [3]. Market Activity - The stock's trading activity shows a net outflow of 7.61 million yuan from main funds, with significant selling pressure observed [1]. - The stock has appeared on the "Dragon and Tiger List" once this year, with the last occurrence on April 7 [1]. Business Overview - Denghai Seeds, established on December 8, 2000, and listed on April 18, 2005, specializes in the breeding of new crop varieties and the production, packaging, and sales of crop seeds [1]. - The company's main revenue sources include corn seeds (91.58%), vegetable seeds (2.70%), rice seeds (2.53%), and other varieties [1].

Group 1 - The company, Denghai Seeds, reported that as of September 30, the number of shareholders is 65,758 [2]