Market Overview - The feed sector increased by 0.67% on October 31, with Tianma Technology leading the gains [1] - The Shanghai Composite Index closed at 3954.79, down 0.81%, while the Shenzhen Component Index closed at 13378.21, down 1.14% [1] Individual Stock Performance - Tianma Technology (603668) closed at 14.23, up 3.27% with a trading volume of 239,900 shares and a turnover of 339 million yuan [1] - Other notable gainers include: - Lude Environment (688156) at 19.92, up 3.11% [1] - Bangji Technology (603151) at 25.74, up 2.92% [1] - Lusi Co., Ltd. (920419) at 18.50, up 2.89% [1] - Baiyang Co., Ltd. (002696) at 6.93, up 1.76% [1] Capital Flow Analysis - The feed sector saw a net inflow of 2.7495 million yuan from institutional investors, while retail investors experienced a net outflow of 68.2743 million yuan [2] - The main capital inflow was observed in: - Haida Group (002311) with a net inflow of 25.3688 million yuan from institutional investors [3] - Tiankang Biological (002100) with a net inflow of 17.8393 million yuan from institutional investors [3] Summary of Trading Data - The trading data for the feed sector includes: - Major stocks with significant trading volumes and turnover, such as: - Aonong Biological (603363) with a turnover of 216 million yuan [2] - Zhongchong Co., Ltd. (002891) with a turnover of 267 million yuan [2] - The overall sentiment in the feed sector appears mixed, with some stocks gaining while others faced declines [2][3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown steady growth in feed business volume and profitability, while reducing costs and improving efficiency in pig farming through mergers and expansions. The profitability of protein and oil businesses is also recovering, leading to the maintenance of the "Buy" rating [3][5]. Financial Performance Summary - For the first three quarters of 2025, the company reported revenue of 13.61 billion yuan, a year-on-year increase of 4.00%. However, the net profit attributable to the parent company was 412 million yuan, down 27.20% year-on-year. In Q3 alone, revenue was 4.76 billion yuan, a decrease of 6.49% year-on-year, with a net profit of 73 million yuan, down 74.58% year-on-year [3][4]. - The company has adjusted its profit forecasts for 2025-2027, now expecting net profits of 417 million yuan, 702 million yuan, and 966 million yuan respectively, with corresponding EPS of 0.31 yuan, 0.51 yuan, and 0.71 yuan. The current stock price corresponds to P/E ratios of 24.2, 14.4, and 10.5 times for 2025-2027 [3][6]. Feed Business Performance - The company's feed sales reached 2.12 million tons in the first three quarters of 2025, an increase of 3.6% year-on-year. In Q3, feed sales were 776,000 tons, up 11.8% year-on-year, with pig feed sales increasing by 18% and poultry feed sales by 8% [4]. - The net profit per ton of feed was approximately 94 yuan for the first three quarters, reaching 110 yuan in Q3. The overall performance of the feed business is improving [4]. Pig Farming Operations - The company sold 2.28 million pigs in the first three quarters of 2025, a year-on-year increase of 6.46%, with revenue from pig sales at 3.34 billion yuan, down 8.23% year-on-year. In Q3, 754,200 pigs were sold, with revenue of 1.10 billion yuan, down 21.11% year-on-year [5]. - The complete cost of pig farming was 12.78 yuan per kilogram, decreasing to 12.7 yuan per kilogram by September. The company is maintaining a stable breeding stock of approximately 140,000 sows and is progressing with the acquisition of Xinjiang Qiangdu Livestock [5].

Core Viewpoint - TianKang Biological (002100) is adhering to national capacity adjustment policies, indicating a proactive approach to managing production capacity in response to regulatory requirements [1] Group 1: Production Capacity Management - The company has maintained a stable breeding sow population of approximately 140,000 over the past two years [1] - In compliance with the requirement to reduce the breeding sow population by 3%, the company plans to eliminate around 4,000 low-efficiency sows [1] Group 2: Production Targets - The initial target for annual output was set between 3.5 million to 4 million heads [1] - The current estimate for total output for the year is approximately 3.3 million heads [1]

Core Viewpoint - TianKang Biological reported a decrease in comprehensive breeding costs for pigs in Q3, primarily due to lower feed, medicine, and piglet costs compared to H1 [1] Summary by Categories Financial Performance - The comprehensive cost of pig breeding in Q3 was 12.78 yuan/kg, down from 13 yuan/kg in H1, reflecting a reduction of 0.22 yuan/kg [1] Cost Analysis - The decrease in costs is attributed to reductions in feed, medicine, and piglet expenses [1] - Corn prices have stabilized, indicating limited room for further reductions in feed costs in Q4, although there may be opportunities for cost savings in other areas and through improved production efficiency [1]

Core Viewpoint - TianKang Biological reported a decrease in comprehensive breeding costs for pigs in Q3, attributed to lower feed, medicine, and piglet costs [1] Summary by Categories Cost Analysis - The comprehensive cost of pig breeding in Q3 was 12.78 yuan/kg, down from 13 yuan/kg in the first half of the year [1] - The reduction in costs is primarily due to decreases in feed, medicine, and piglet expenses [1] Future Outlook - Although there is limited room for further reduction in feed costs in Q4, there remains potential for optimization in cost control and production efficiency [1]

Financial Performance - In the first three quarters of 2025, the company achieved a revenue of CNY 13.61 billion, a 4% increase year-on-year [2] - Net profit attributable to shareholders was CNY 412 million, a decrease of 27.2% compared to the same period last year [2] - Basic earnings per share stood at CNY 0.3, with a weighted average return on equity of 5.76% [2] - In Q3 2025, revenue was CNY 4.764 billion, down 6.49% year-on-year, and net profit was CNY 73.46 million, a decline of 74.58% [2] Operational Metrics - Total asset value as of September 30, 2025, was CNY 16.817 billion, a decrease of 4.25% from the end of the previous year [2] - The company’s net assets attributable to shareholders increased by 2.21% to CNY 7.17 billion [2] - Feed business sales volume reached 2.12 million tons, a 3.62% increase year-on-year, with Q3 sales at 776,000 tons, up 11.8% [2][3] - The company slaughtered 2.2823 million pigs in the first three quarters, a 6.46% increase year-on-year, with Q3 slaughtering at 754,100 pigs, up 1.58% [3] Cost Management - The comprehensive cost of pig farming in Q3 was CNY 12.78/kg, down from CNY 13/kg in the first half of the year [4] - The cost reduction was primarily due to lower feed, medicine, and piglet prices [4] - In Gansu, the cost dropped to CNY 12.25/kg in September, attributed to improved management and production efficiency [4] Production Capacity - The company maintained a stable breeding sow population of around 140,000, with a planned reduction of 3% in line with national policies [5] - The annual slaughter target was initially set at 3.5-4 million pigs, now expected to be around 3.3 million [5] Production Indicators - The current PSY (Pigs per Sow per Year) is approximately 27, with a fattening survival rate of 96% and an annual production cycle of 2.2 [6] - In the first nine months, the total pig slaughter included 357,000 piglets, with Q3 figures showing 83,600 piglets [7] Feed Business Insights - Q3 feed sales increased significantly, with pig feed sales at 462,300 tons (up 18%) and poultry feed at 165,500 tons (up 8%) [8] - The company anticipates challenges in the fourth quarter due to a rapid decline in pig prices, but aims to enhance production efficiency and reduce costs [8]

Core Viewpoint - TianKang Biological is a leading domestic supplier of biological vaccines and feed for livestock and poultry, with significant investment value due to its full industry chain advantages [1] Group 1: Business Performance - In Q3 2025, TianKang Biological achieved operating revenue of 13.61 billion, ranking 4th among 10 companies in the industry, with the top company, HeFeng Co., at 28.07 billion [2] - The net profit for the same period was 505 million, ranking 1st in the industry, with the second being AoNong Biological at 439 million [2] - The revenue composition includes 2.85 billion from the pig breeding industry chain, accounting for 32.20%, and 2.43 billion from feed, accounting for 27.51% [2] Group 2: Financial Ratios - As of Q3 2025, the asset-liability ratio was 47.86%, lower than the previous year's 49.89% and below the industry average of 54.11% [3] - The gross profit margin was 10.88%, down from 11.99% year-on-year but still above the industry average of 9.94% [3] Group 3: Management and Shareholder Structure - The total compensation for General Manager Cheng Hui was 829,500, an increase of 229,500 from the previous year [4] - The largest shareholder is the Xinjiang Production and Construction Corps State-owned Assets Management Co., Ltd. [4] Group 4: Shareholder Changes - As of September 30, 2025, the number of A-share shareholders decreased by 3.42% to 60,600 [5] - The average number of circulating A-shares held per household increased by 3.54% to 22,500 [5] Group 5: Future Outlook - According to Citic Securities, revenue is expected to grow by 4.00% year-on-year, while net profit is projected to decline by 27.20% [6] - The company is expected to achieve revenues of 16.79 billion, 17.47 billion, and 18.02 billion from 2025 to 2027, with net profits of 446 million, 723 million, and 928 million respectively [6] - Pacific Securities anticipates a net profit of 777 million and 1.315 billion for 2025 and 2026, respectively [6]

Investment Rating - The investment rating for the company is "Accumulate (Maintain)" [2] Core Views - The company has shown a revenue increase of 4.00% year-on-year for the first three quarters of 2025, but the net profit attributable to shareholders decreased by 27.20% [8] - The company is expected to achieve revenue of 167.9 billion, 174.7 billion, and 180.2 billion yuan for the years 2025 to 2027, with net profits of 4.46 billion, 7.23 billion, and 9.28 billion yuan respectively [8] - The report highlights the stable development of various business segments, including pig farming and non-pig businesses such as feed and veterinary medicine, with a focus on cost reduction and efficiency improvement [8] Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 136.10 billion yuan, with a net profit of 4.12 billion yuan [8] - The company’s average breeding cost improved to approximately 12.5 yuan/kg by the third quarter of 2025 [8] - The company’s cash flow remains stable, with monetary funds amounting to 37.79 billion yuan, an increase of 21.8% compared to the beginning of the year [8] Earnings Forecast - The projected earnings per share (EPS) for 2025 is 0.33 yuan, with a price-to-earnings (PE) ratio of 23.9 [6] - The return on equity (ROE) is expected to be 6.1% in 2025, increasing to 11.4% by 2027 [6] - The company’s revenue growth rate is forecasted to be -2.3% in 2025, followed by a recovery of 4.1% in 2026 and 3.2% in 2027 [6]

Market Overview - The feed sector experienced a decline of 0.27% on October 30, with TianKang Biological leading the drop [1] - The Shanghai Composite Index closed at 3986.9, down 0.73%, while the Shenzhen Component Index closed at 13532.13, down 1.16% [1] Individual Stock Performance - JinXinNong (002548) saw a closing price of 4.97, with an increase of 3.76% and a trading volume of 597,100 shares, amounting to a transaction value of 296 million yuan [1] - TianKang Biological (002100) closed at 7.41, down 5.00%, with a trading volume of 399,000 shares and a transaction value of 300 million yuan [2] - HaiDa Group (002311) closed at 58.03, up 1.13%, with a transaction value of 601 million yuan [1] Capital Flow Analysis - The feed sector experienced a net outflow of 7.145 million yuan from main funds, while retail investors saw a net outflow of 27.133 million yuan [2] - Speculative funds had a net inflow of 34.278 million yuan [2] Detailed Capital Flow for Selected Stocks - JinXinNong (002548) had a main fund net inflow of 36.412 million yuan, while retail investors experienced a net outflow of 26.058 million yuan [3] - TianKang Biological (002100) reported a main fund net inflow of 13.751 million yuan, with a retail net outflow of 32.292 million yuan [3] - HaiDa Group (002311) had a main fund net inflow of 12.416 million yuan, while retail investors saw a net outflow of 17.449 million yuan [3]

Group 1 - The company TianKang Biological (SZ 002100) held its 28th temporary board meeting on October 29, 2025, via communication voting to review the "2025 Q3 Report" and other documents [1] - For the first half of 2025, the revenue composition of TianKang Biological was as follows: pig farming accounted for 32.2%, feed accounted for 27.51%, agricultural product processing accounted for 16.37%, corn storage industry accounted for 14.75%, and veterinary medicine accounted for 5.44% [1] - As of the report date, the market capitalization of TianKang Biological was 10.6 billion yuan [1] Group 2 - The A-share market has surpassed 4000 points, marking a significant resurgence after a decade of stagnation, with technology leading the market transformation and a new "slow bull" pattern emerging [1]