Investment Rating - The report maintains an "Overweight" rating for the agricultural sector, indicating that it is expected to outperform the overall market [2][4]. Core Insights - The report highlights a significant decline in pig prices during the National Day holiday, leading to losses in both piglet and fat pig farming, and emphasizes the importance of monitoring the capacity reduction process in the industry [1][3]. - The report suggests that the pig farming industry is entering a phase of accelerated capacity reduction due to losses and policy-driven "anti-involution" measures, marking the end of the current pig cycle [3][4]. - It identifies potential investment opportunities in leading pig farming companies, which are expected to undergo a value reassessment due to improved long-term profitability and shareholder returns [3][4]. Summary by Sections Market Performance - The Shenwan Agricultural, Forestry, Animal Husbandry, and Fishery Index rose by 0.2%, while the CSI 300 increased by 2.0% [3][4]. - Top-performing stocks included Hualv Biological (+6.0%) and Honghui Fruits and Vegetables (+4.1%) [4][11]. Pig Farming - The average price of external three yuan pigs was reported at 11.61 yuan/kg as of October 8, down 0.67 yuan/kg from the previous week, indicating a significant price drop [3][12]. - The average cost of self-breeding pig farming is estimated between 12.5-13.0 yuan/kg, leading to widespread losses across the industry [3][12]. - The price of weaned piglets fell to 236 yuan/head, a decrease of 23 yuan/week, marking a new low for the year [3][13]. Chicken Farming - The white feather broiler market showed signs of price recovery, with the average selling price of broiler chicks at 3.27 yuan/chick, up 5.48% week-on-week [3][16]. - The yellow feather chicken market experienced a slight decline in prices, with the average price at 5.16 yuan/jin, down 9% week-on-week [3][16]. Pet Food Market - Online sales of pet food reached approximately 2.4 billion yuan in August, reflecting an 11% year-on-year increase [3][4]. - Notable companies in the pet food sector, such as Guibao Pet and Zhongchong Co., reported significant growth in sales [3][4]. Investment Recommendations - The report recommends focusing on leading companies in the pig farming sector, including Muyuan Foods, DeKang Agriculture, and Wens Foodstuffs, as they are expected to benefit from the ongoing capacity reduction and value reassessment [3][4].

Market Overview - The aquaculture sector experienced a decline of 0.22% on September 30, with Lihua Co. leading the drop [1] - The Shanghai Composite Index closed at 3882.78, up 0.52%, while the Shenzhen Component Index closed at 13526.51, up 0.35% [1] Stock Performance - Notable gainers in the aquaculture sector included: - *ST Tianshan: Closed at 8.34, up 2.08% with a trading volume of 46,400 shares [1] - Shengnong Development: Closed at 18.03, up 1.75% with a trading volume of 128,900 shares [1] - Jinke Dron: Closed at 16.26, up 0.68% with a trading volume of 107,800 shares [1] - Major decliners included: - Lihua Co.: Closed at 21.71, down 2.91% with a trading volume of 139,700 shares [2] - Juxing Agriculture: Closed at 20.29, down 0.93% with a trading volume of 115,700 shares [2] - New Hope: Closed at 9.80, down 0.41% with a trading volume of 304,900 shares [2] Capital Flow - The aquaculture sector saw a net outflow of 163 million yuan from institutional investors, while retail investors contributed a net inflow of 120 million yuan [2][3] - The capital flow for specific stocks showed: - Muyuan Foods: Net outflow of 16.34 million yuan from institutional investors [3] - Huaying Agriculture: Net inflow of 10.62 million yuan from institutional investors [3] - Shennong Group: Net inflow of 5.14 million yuan from institutional investors [3]

Core Viewpoint - The stock of Shennong Development has shown significant growth this year, with a notable increase in both revenue and net profit, indicating strong performance in the poultry industry [1][2]. Group 1: Stock Performance - As of September 30, Shennong Development's stock price increased by 2.03%, reaching 18.08 CNY per share, with a total market capitalization of 22.477 billion CNY [1]. - The stock has risen by 28.39% year-to-date, with a 5.73% increase over the last five trading days and a 19.66% increase over the last 60 days [1]. - The company has appeared on the "Dragon and Tiger List" once this year, with the most recent occurrence on April 8 [1]. Group 2: Financial Performance - For the first half of 2025, Shennong Development reported a revenue of 8.856 billion CNY, reflecting a year-on-year growth of 0.22%, while the net profit attributable to shareholders reached 910 million CNY, a remarkable increase of 791.93% [2]. - Cumulatively, the company has distributed 6.860 billion CNY in dividends since its A-share listing, with 1.113 billion CNY distributed over the past three years [3]. Group 3: Shareholder and Institutional Holdings - As of September 10, the number of shareholders for Shennong Development decreased by 8.03% to 35,700, while the average circulating shares per person increased by 8.73% to 34,843 shares [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited holds 33.7795 million shares, an increase of 13.3849 million shares compared to the previous period [3]. - The Southern CSI 500 ETF and Bosera Growth Navigation Mixed A are also among the top shareholders, with varying changes in their holdings [3].

Core Insights - The report maintains a positive outlook on the pig farming industry, recommending continued investment in pig farming despite recent price declines due to supply pressures [1][7][21] - The report highlights a significant drop in pig prices, with the average price for market pigs at 12.67 yuan/kg, down 3.65% week-on-week [7][32][33] - The report indicates ongoing losses in pig farming, with self-breeding and purchased pig farming yielding losses of 74.11 yuan/head and 236.57 yuan/head respectively [7][37] Industry Overview - The agricultural sector index has decreased by 1.97% week-on-week, while the Shanghai and Shenzhen 300 index increased by 1.07% [11] - Since January 2, 2025, the agricultural sector has seen a total increase of 16.95%, compared to a 15.63% increase in the Shanghai and Shenzhen 300 index [12][11] - The report notes that the pig farming sector is currently in a downward cycle, with supply pressures gradually being released [21] Pig Farming Data Tracking - The number of breeding sows has slightly decreased by 0.80% month-on-month in August, indicating a potential reduction in future supply [22][7] - The average weight of market pigs at the time of sale is reported at 128.55 kg [22][8] - The report emphasizes that the current breeding and purchasing sentiment is declining due to stricter environmental regulations and market conditions [17][21] Poultry Farming Data Tracking - The average price for white feathered chickens is reported at 6.90 yuan/kg, with a slight increase of 0.29% week-on-week [38][41] - The report notes that the poultry industry is facing uncertainties due to ongoing outbreaks of avian influenza in overseas markets [38][39] Animal Health Data Tracking - The demand for animal health products is expected to rebound, with significant growth in vaccine approvals and product launches [46] - The report highlights that the industry is seeing a recovery in sales, with some vaccines showing substantial year-on-year growth [46] Seed Industry Data Tracking - The average prices for wheat, soybean meal, and corn have shown slight increases, indicating a potential upward trend in agricultural input costs [50] - The report emphasizes the importance of food security and the need for advancements in agricultural biotechnology [50] Pet Industry Data Tracking - Pet food exports have decreased by 15.5% year-on-year, with a total export value of 834 million yuan in August 2025 [55][56] - Domestic sales of pet food continue to grow, with significant increases reported on e-commerce platforms [57] - The report suggests that companies with strong domestic sales and innovative product offerings are likely to gain market share [59]

Core Viewpoint - The report from Huazhong Securities indicates that Shengnong Development achieved a net profit attributable to shareholders of 910 million yuan in the first half of 2025, representing a year-on-year increase of 791.9% [1] Group 1: Financial Performance - Shengnong Development completed the consolidation of Sun Valley in May, leading to a significant acceleration in chicken and deep processing sales in July and August [1] - The company has revised its expectations for chicken sales, chicken prices, meat product sales, and meat product prices for the years 2025 to 2027 [1] Group 2: Operational Efficiency - The company has enhanced operational efficiency through industrial empowerment and lean management, which has significantly improved Sun Valley's operational performance [1] - The integration of Sun Valley allows the company to leverage its self-controlled breeding sources and the synergy of its full industry chain layout, accelerating the deep integration and technical and management empowerment of Sun Valley [1] Group 3: Market Position - As the largest white feather broiler full industry chain company in China, Shengnong Development continues to optimize the production indicators of its Shengze 901Plus, highlighting its cost advantages [1] - The company maintains its "buy" rating, reflecting confidence in its future performance growth [1]

Core Insights - The aquaculture sector saw a slight increase of 0.14% on September 29, with Tianyu Biological leading the gains [1] - The Shanghai Composite Index closed at 3862.53, up 0.9%, while the Shenzhen Component Index closed at 13479.43, up 2.05% [1] Aquaculture Sector Performance - Tianyu Biological (603717) closed at 8.87, up 1.49% with a trading volume of 107,100 shares and a transaction value of 93.82 million yuan [1] - Huaying Agriculture (002321) closed at 2.98, up 1.36% with a trading volume of 583,200 shares and a transaction value of 172 million yuan [1] - Luoniushan (000735) closed at 6.36, up 1.27% with a trading volume of 182,200 shares and a transaction value of 115 million yuan [1] - Other notable performers include Shengnong Development (002299) at 17.72 (+1.14%), New Hope (000876) at 9.84 (+1.03%), and Muyuan Foods (002714) at 53.00 (+1.01%) [1] Capital Flow Analysis - The aquaculture sector experienced a net outflow of 265 million yuan from institutional investors, while retail investors saw a net inflow of 1.91 million yuan [2] - Notable net inflows from retail investors were observed in New Hope (000876) with 7.82 million yuan and Huaying Agriculture (002321) with 6.16 million yuan [3] - Conversely, Wens Foodstuffs (300498) faced a significant net outflow of 39.40 million yuan from institutional investors [3]

Core Viewpoint - Fujian Shennong Development Co., Ltd. has approved a plan to engage in commodity futures hedging to mitigate the impact of raw material price fluctuations on its business performance, with a maximum investment of 100 million yuan [2][6]. Group 1: Meeting Details - The 13th meeting of the 7th Board of Directors was held on September 26, 2025, with all nine directors present, and the meeting complied with relevant laws and regulations [1]. - The meeting was convened by Chairman Fu Guangming and included both in-person and remote participation [1]. Group 2: Approval of Hedging Business - The board unanimously approved the proposal to conduct commodity futures hedging, with a voting result of 9 in favor, 0 against, and 0 abstentions [2]. - The hedging aims to reduce the impact of price volatility of major raw materials like corn and soybean meal on the company's operations [8]. Group 3: Financial Details - The company plans to use its own funds, with a maximum of 100 million yuan (excluding physical delivery amounts), for the hedging activities, which will be valid for 12 months from the approval date [6][9]. - The previously approved hedging limits will automatically become invalid upon the approval of this new limit [6]. Group 4: Internal Control and Risk Management - The company has revised its internal control system for commodity futures hedging in accordance with relevant laws and regulations [3][12]. - A Futures Decision Committee will be established to oversee the hedging activities, with specific responsibilities assigned to the feed raw material procurement department [9][12]. Group 5: Accounting Treatment - The company will follow relevant accounting standards for the proposed hedging activities, ensuring that the hedging is managed centrally to reduce internal control risks [13]. - The unified management model will prevent individual subsidiaries from conducting their own futures trading, thereby minimizing operational risks [13]. Group 6: Documentation - The board's resolution and the feasibility analysis for the commodity futures hedging business will be made available for public reference [14].

Core Viewpoint - Fujian Shengnong Development Co., Ltd. plans to conduct commodity futures hedging business with a maximum amount of 100 million yuan to mitigate the impact of raw material price fluctuations on its operating performance [1][2] Group 1: Hedging Business Details - The hedging business will primarily involve corn and soybean meal, which are related to the company's production operations, and will be limited to on-exchange trading in domestic commodity futures markets [1] - The maximum margin required for the hedging activities will not exceed 100 million yuan, and the funds will come from the company's own resources without involving bank credit [1] - The authorization for the hedging business is granted to the general manager, who will establish a futures decision-making committee to oversee the activities within the approved limit [1][2] Group 2: Risk Analysis and Control Measures - Risks associated with the hedging business include price volatility risk, funding risk, technical risk, credit risk, and policy risk [3] - To mitigate these risks, the company will ensure that the hedging activities align with its production needs, maintain strict control over the funding scale, and adhere to internal control systems for commodity futures hedging [3] - A futures decision-making committee will be established to manage related matters, supported by a risk assessment and supervision team [3] Group 3: Accounting Treatment - The company will account for the hedging business according to relevant accounting standards set by the Ministry of Finance, applying hedge accounting methods for qualifying hedging strategies [4]

Core Viewpoint - The company aims to mitigate the impact of raw material price fluctuations on its operating performance by engaging in commodity futures hedging activities, with a maximum investment of 100 million yuan [1] Group 1: Company Strategy - The company plans to use its own funds to conduct commodity futures hedging business, with a maximum amount not exceeding 100 million yuan, excluding the delivery payment for the underlying physical goods [1] - The primary commodities for the hedging activities will include corn and soybean meal, which are closely related to the company's production operations [1] - The hedging amount will be used on a rolling basis within 12 months from the date of approval by the board of directors [1]

第二条 公司进行商品期货套期保值业务的品种只限于生产经营所需的原 材料，如豆粕、玉米、油脂等，目的是借助商品期货市场的价格发现、风险对 冲功能，利用套期保值工具有效防范原材料价格波动风险，锁定经营利润。公 司从事商品期货套期保值业务，不得进行以投机为目的的交易。 第三条 公司进行商品期货套期保值业务，只限于在境内商品期货交易所 进行场内市场交易，不得进行场外市场交易。 福建圣农发展股份有限公司 商品期货套期保值内部控制制度 （2025 年修订） 第一章 总则 第一条 为有效防范原材料市场价格波动给福建圣农发展股份有限公司 （以下简称"公司"）的生产、经营造成负面影响，控制经营风险，提高公司 竞争力，同时规范公司商品期货套期保值业务，加强商品期货套期保值业务的 风险管理和风险控制，根据《中华人民共和国证券法》、《中华人民共和国期货 和衍生品法》、《深圳证券交易所股票上市规则》、《深圳证券交易所上市公司自 律监管指引第七号—交易与关联交易》《深圳证券交易所上市公司自律监管指引 第 7 号——交易与关联交易》、《企业内部控制基本规范》《企业会计准则第 24 号——套期会计》等法律、法规、规章、规范性文件及《福建圣农 ...