Investment Rating - The industry investment rating is "Overweight" indicating a positive outlook for the sector compared to the overall market performance [4]. Core Insights - The report highlights a rebound in pig prices, which are stabilizing and maintaining strength. The focus is on the release of the pet industry white paper [1][4]. - The report suggests that the pig farming sector is experiencing a clear bottoming trend, with a focus on the progress of capacity reduction. The supply fundamentals for the first half of 2026 remain unchanged, indicating a prolonged bottoming period for the cycle [4]. - The pet industry is expected to see a valuation switch as it undergoes adjustments, with significant data from the 2026 China Pet Industry White Paper being released [4]. Summary by Sections Market Performance - The Shenwan Agricultural, Forestry, Animal Husbandry, and Fishery Index increased by 1.0%, while the CSI 300 rose by 2.8%. The top five gainers included Dahu Co. (17.8%), Zhongshui Fishery (16.1%), and Biological Co. (15.5%) [4][10]. - The report emphasizes the importance of monitoring the reduction of pig production capacity and suggests positioning in leading pig farming companies [4]. Pig Farming - As of January 11, the average selling price of external three yuan pigs was 12.70 yuan/kg, reflecting a week-on-week increase of 2.1%. The supply of large pigs is tight, and the price has rebounded to near the breakeven point for farming [4][3]. - The report indicates that the price of weaned piglets has also increased, reaching 251 yuan/head, close to the industry cost level [4][3]. Pet Industry - The 2025 urban pet (dog and cat) consumption market size reached 312.6 billion yuan, with a year-on-year growth of 4.1%. The dog market size was 160.6 billion yuan, growing by 3.2%, while the cat market size was 152.0 billion yuan, growing by 5.2% [4][3]. - The average annual spending per pet owner has shown a slight upward trend, with dog owners spending an average of 3,006 yuan and cat owners spending 2,085 yuan [4][3]. Poultry Farming - The price of white feather broiler chicks has decreased, with an average selling price of 3.15 yuan/chick, down 6.5% week-on-week. The supply of broilers remains tight, with the average selling price of white feather broilers at 3.79 yuan/kg [4][3]. - The report suggests that the theme of abundant supply in white feather broilers will continue into 2025-2026, with a focus on leading companies and long-term value [4].

Group 1 - The core point of the article is that Shengnong Development (002299) reported a total of 37,143 shareholders as of December 19, 2025 [1]

Group 1 - The company, Shennong Development, indicated that its deep-processed meat products are primarily sold to Japan and South Korea, and it has successfully opened international markets for its breeding chicken business [2] - The company was asked about its product sales range, specifically regarding sales in Europe and EU countries, highlighting investor interest in the company's international operations [2]

Core Insights - The fried chicken industry in China is experiencing significant growth, with the market size expected to reach 94 billion yuan in 2024, representing a year-on-year increase of 17.5% [1][10] - The rise in health consciousness among consumers is prompting brands to innovate cooking methods and optimize ingredient ratios, leading to the introduction of healthier products [1][10] Industry Overview - Fried chicken is defined as a food product made from chicken that is processed and deep-fried, characterized by a crispy exterior and tender interior [2] - It can be categorized based on bone presence, flavor profiles, and regional styles, including American, Korean, Japanese, and Chinese fried chicken [2][3] Development History - The evolution of the fried chicken industry in China has transitioned from being a niche product to a mainstream leisure food, with a focus on profitability and brand recognition since 2023 [4] - The industry is witnessing a shift towards health, digitalization, and supply chain collaboration, with leading brands enhancing upstream integration and central kitchen development [4][6] Policy Environment - The Chinese government has implemented various policies to support the development of the restaurant industry, including guidelines for food safety and quality control [6] - Regulations have been established to ensure the safety of chicken production, processing, and distribution, promoting a more standardized and high-quality industry [6] Industry Chain - The upstream of the fried chicken industry includes suppliers of chicken, flour, starch, and seasonings, while the midstream consists of production and brand operators [6][7] - The downstream encompasses various sales channels, including restaurants, retail, and e-commerce platforms, catering to consumer preferences for convenience [6] Consumer Insights - The majority of fried chicken consumers in China are female (52.1%), with over 70% aged between 18-35 years, indicating a strong preference for personalized and convenient dining experiences [8][9] - Afternoon tea is the most popular consumption scenario, followed by late-night snacks and meals, with a significant portion of consumers purchasing fried chicken weekly [8][9] Competitive Landscape - The fried chicken market is highly fragmented, with approximately 9.88 million related enterprises as of November 2025, indicating intense competition [10][11] - Notable brands include Zhengxin Chicken, Linyu Fried Chicken, and various others, with Zhengxin Chicken ranked as the top brand in a recent survey [10][11] Future Trends - The industry is expected to focus on value-driven operations rather than mere expansion, with leading brands optimizing store models and enhancing customer engagement [14] - There will be a shift towards deep innovation in Chinese flavors, with local tastes becoming a central theme in product development [14] - Health-conscious trends will drive brands to adopt new cooking technologies and healthier ingredients, moving away from high-fat perceptions [15] - Supply chain collaboration and digital transformation will become essential, with leading brands establishing strong ties with suppliers and enhancing logistics efficiency [16]

Core Viewpoint - The Zhongzheng 500 Enhanced ETF (159678) has shown a positive performance since its inception, with a return of 40.53% since February 13, 2023, and a recent one-month return of 7.00% [1] Group 1: ETF Performance - The Zhongzheng 500 Enhanced ETF opened at 1.416 yuan, with an increase of 0.93% [1] - The ETF's performance benchmark is the Zhongzheng 500 Index return rate [1] - The fund is managed by Bosera Asset Management, with fund managers Liu Zhao and Yang Zhenjian [1] Group 2: Top Holdings - Key stocks in the ETF include: - Shenghong Technology up 1.47% - Huagong Technology up 0.28% - Goldwind Technology up 10.00% - Giant Network down 0.42% - Perfect World up 0.98% - Ninebot Company up 0.27% - Jincheng Trust up 0.11% - Gaode Infrared up 1.91% - Rockchip up 0.46% - Shennong Development unchanged [1]

Core Viewpoint - The aquaculture sector experienced a rise of 1.15% on December 30, with Jingji Zhino leading the gains, while the overall market showed mixed results with the Shanghai Composite Index closing at 3965.12, unchanged, and the Shenzhen Component Index at 13604.07, up by 0.49% [1]. Group 1: Stock Performance - Jingji Zhino (000048) closed at 17.23, up by 5.90%, with a trading volume of 453,500 shares and a transaction value of 766 million yuan [1]. - Other notable performers included: - Shennong Group (605296) at 29.45, up by 2.08% [1]. - Muyuan Foods (002714) at 50.89, up by 1.98% [1]. - Lihua Co. (300761) at 20.78, up by 1.27% [1]. - Wens Foodstuff Group (300498) at 17.12, up by 1.18% [1]. Group 2: Capital Flow - The aquaculture sector saw a net outflow of 21.95 million yuan from institutional investors, while retail investors contributed a net inflow of 153 million yuan [2]. - The capital flow for key stocks included: - Muyuan Foods (002714) had a net inflow of 1.29 billion yuan from institutional investors, but a net outflow of 104 million yuan from retail investors [3]. - Jingji Zhino (000048) experienced a net inflow of 32.34 million yuan from institutional investors and a net inflow of 43.92 million yuan from retail investors [3]. - New Hope (000876) had a net inflow of 11.87 million yuan from institutional investors [3].

Group 1 - The aquaculture sector increased by 1.58% on December 29, with Jingji Zhino leading the gains [1] - The Shanghai Composite Index closed at 3965.28, up 0.04%, while the Shenzhen Component Index closed at 13537.1, down 0.49% [1] - Key stocks in the aquaculture sector showed varied performance, with Jingji Zhino rising by 10.01% to a closing price of 16.27 [1] Group 2 - The main funds in the aquaculture sector saw a net inflow of 90.42 million yuan, while retail funds had a net inflow of 10.91 million yuan [2] - Major stocks like Muyuan Foods and Wen's Foodstuffs experienced significant net outflows from retail investors [3] - Jingji Zhino had a net inflow of 67.42 million yuan from main funds, indicating strong institutional interest [3]

Investment Rating - The report maintains an "Overweight" rating for the agriculture, forestry, animal husbandry, and fishery industry [1][42] Core Views - The SW agriculture, forestry, animal husbandry, and fishery industry slightly underperformed the CSI 300 index, with an increase of 1.55% from December 12 to December 25, 2025, lagging behind the index by approximately 0.43 percentage points [11][14] - All sub-sectors recorded positive returns during the same period, with notable increases in agricultural product processing (3.04%), animal health (2.95%), planting (2.28%), fishery (1.56%), breeding (0.81%), and feed (0.29%) [14][15] - The overall price-to-book (PB) ratio for the industry is approximately 2.79 times, indicating a slight recovery in valuation, which remains at a historical low level, around the 62.7 percentile since 2006 [18][24] Industry Important Data - **Pig Farming**: The average price of external three-way cross pigs increased from 11.45 CNY/kg to 11.59 CNY/kg during the reporting period. The cost of corn and soybean meal has slightly decreased, with corn priced at 2338.04 CNY/ton and soybean meal at 3102 CNY/ton as of December 25, 2025 [22][24] - **Profitability**: As of December 26, 2025, the profit for self-bred pigs was -130.11 CNY/head, and for purchased piglets, it was -162.8 CNY/head, showing a reduction in losses compared to the previous two weeks [27] - **Poultry Farming**: The average price of broiler chicks was 3.59 CNY/chick, showing a slight increase, while the average price for white feather broilers was 7.82 CNY/kg, with profitability improving to 0.89 CNY/chick [29][33] Industry Insights - The report emphasizes the potential for a rebound in pig prices as the seasonal consumption peak approaches, with a focus on the high inventory of breeding sows and the opportunities for leading pig farming companies [42][43] - In poultry farming, the report highlights the recovery in white feather broiler prices and the improvement in profitability, suggesting a positive outlook for leading poultry companies [42][43] - The report also notes growth potential in the domestic pet market and the expected increase in export volumes, recommending attention to promising domestic leaders in this sector [42][43]

Core Viewpoint - Fujian Shennong Development Co., Ltd. has appointed Liu Qiuli as the head of the audit department, effective from the date of the board meeting on December 25, 2025, until the end of the current board's term [2][6]. Group 1: Board Meeting Details - The 19th meeting of the 7th Board of Directors was held on December 25, 2025, in a combined format of communication and in-person attendance [1]. - All nine directors attended the meeting, with voting conducted by a show of hands, resulting in 9 votes in favor, 0 against, and 0 abstentions for the appointment of the audit department head [1][6]. Group 2: Appointment of Audit Department Head - Liu Qiuli, born in 1981, has a college degree and is a mid-level accountant with no foreign permanent residency [4][8]. - Liu has previously worked at Mengniu Fuzhou Branch and joined Fujian Shennong Food Co., Ltd. in 2018, currently serving as the head of the audit department [4][8]. - Liu holds 6,633 shares of the company and has no related party relationships with the board members or major shareholders [4][8]. Group 3: Compliance and Legal Matters - The appointment complies with the relevant regulations of the Company Law and the company's articles of association [6]. - Liu Qiuli is not listed as a dishonest person in the Supreme People's Court database and has not faced penalties from regulatory bodies [4][8].

Core Viewpoint - The company has appointed Liu Qiuli as the head of the audit department, responsible for internal auditing, effective from the date of the board meeting approval until the end of the current board's term [1] Group 1 - The seventh board of directors' nineteenth meeting approved the appointment of Liu Qiuli [1] - The appointment is aimed at enhancing the company's internal audit functions [1]