Investment Rating - The industry investment rating is "Positive" (maintained) [3] Core Viewpoints - The swine industry has entered a loss-making phase, with policies aimed at reducing internal competition likely to continue, suggesting a focus on cost-efficient leading companies [3][5] - The latest weekly pig price is 13.15 CNY/kg (down 0.37 CNY/kg week-on-week), indicating the industry is in a loss zone, with a potential stabilization of prices in the future [5][15] - The agricultural policy is undergoing a significant transformation, emphasizing the protection of farmers' rights and the activation of corporate innovation, which may lead to a focus on technology and innovative business models [6][16] Summary by Sections 1. Swine Industry - The swine industry is experiencing capacity control measures, with a recent meeting involving 25 pig enterprises to implement production capacity adjustments [6][15] - The average weight of pigs at market is 128.45 kg (up 0.13 kg week-on-week), while the price of 15 kg piglets is 358 CNY/head (down 36 CNY/head) [5][15] - The report suggests that leading companies with cost advantages and community engagement will benefit from excess profits and valuation premiums [6][16] 2. Poultry Industry - The chicken industry faces a persistent contradiction of "high capacity, weak consumption," leading to losses that may force breeding farms to reduce capacity [7][17] - The price of chicken chicks is 3.40 CNY/bird (up 7.9% week-on-week), while the price of broilers is 3.38 CNY/kg (down 1.46% week-on-week) [7][17] - Focus on companies with improving ROE and sustainable growth, particularly high-quality imported breeding stock and integrated enterprises [7][17] 3. Feed Industry - The report recommends Hai Da Group due to improved management effectiveness and increased capacity utilization, leading to growth in volume and profit [8][18] - The prices of various fish species have shown mixed trends, with some experiencing significant year-on-year declines [8][18] 4. Pet Industry - The pet industry is seeing a consolidation of leading brands, with expectations of recovery in the third quarter following a weak second quarter [10][20] - Continued focus on strong domestic brands and companies with good performance in overseas markets [10][20] 5. Agricultural Products - The USDA's September report is bearish, with adjustments in soybean planting area and yield forecasts impacting market expectations [11][21] - The report highlights the importance of monitoring U.S.-China trade negotiations and weather conditions affecting soybean planting [11][21] 6. Market and Price Situation - The agricultural index has decreased by 2.70% compared to the previous week, with the overall market showing mixed performance [22][29] - The report notes the impact of external factors such as African swine fever outbreaks in neighboring countries on market stability [50]

Summary of Haida Group's Conference Call Company Overview - Haida Group focuses on aquaculture feed, which is the core profit driver, particularly in domestic and international markets [2][4] - The aquaculture industry chain is fragmented, allowing leading companies to dominate changes and penetrate various segments like seedlings and feed, creating a comprehensive service loop to enhance farming efficiency [2] Key Insights Industry Dynamics - Significant differences exist between aquaculture and livestock farming. Aquaculture upstream is highly fragmented, giving leading companies stronger bargaining power, while livestock farming is more centralized with large enterprises holding more influence [2][6] - Haida Group holds approximately 20% market share in domestic aquaculture feed, with some core varieties reaching 40%-50% in specific regions. Long-term potential exists to increase this to 40%-50% [2][9] - The livestock feed market share is around 10%, with a long-term target of over 15% [2][9] Business Strategy - The strategy for the pig farming segment focuses on cost optimization rather than aggressive growth, with expected stable production levels of 6-7 million pigs over the next two years [2][11] - Haida Group's diversified operations in aquaculture, poultry, and pig feed allow for a robust procurement system and negotiation advantages, thereby reducing costs and solidifying its cost leadership position [2][13] Market Performance and Growth - The aquaculture feed market is performing well this year, with positive growth expected to continue into the next year, despite some marginal changes in overall growth rates [3] - The international strategy has shown significant results, with leading positions in markets like Vietnam, Egypt, and Indonesia, and plans to double overseas business volume by 2030, primarily in aquaculture feed [5][16] Competitive Advantages - Haida Group's core competitiveness in feed business lies in its strong position in aquaculture feed, which remains the most important profit source despite the rapid growth of livestock feed sales [4] - The company has implemented innovative management practices, enhancing operational efficiency and creating a closed-loop development model for feed, seedlings, and health products [14][15] Financial Projections - The pure feed business segment is expected to see profits grow by over 20%, while the pig farming segment is projected to maintain profitability above 1 billion RMB [5][29] - Overall profit for the current year is estimated to exceed 5 billion RMB, with projections for the next year reaching 6 billion RMB, indicating a growth rate of approximately 25-30% [29] Market Trends - The aquaculture industry is expected to experience growth driven by supply-demand changes and price cycles, with specific species like the California sea bass showing strong price performance [20][21] - The pig feed market may face challenges due to high supply levels, but long-term trends suggest potential price recovery and demand stabilization [23] Conclusion - Haida Group's diversified approach, strong market positioning, and innovative strategies provide a solid foundation for future growth, with optimistic projections for market share and profitability across various segments [30]

Core Points - The 2025 World Manufacturing Conference was held in Hefei, where the China Enterprise Confederation and the China Entrepreneur Association released the list of the top 500 manufacturing companies in China for 2025, marking the 21st consecutive year of this publication [2][3] - The threshold for entry into the top 500 has increased to 17.3652 billion yuan, up by 303 million yuan from the previous year [2][3] - The total revenue of the top 500 companies reached 51.68 trillion yuan, an increase of 11.44 trillion yuan from 40.24 trillion yuan [3] Company Highlights - A total of 13 agricultural and livestock companies made it to the list, including New Hope Group, Beijing Shounong Food Group, Muyuan Foods, Bright Food, Haida Group, Wens Foodstuff Group, Twin Group, Shuanghui Development, Liyuan Group, Yuanyao Agriculture, Tangrenshen Group, Tequ Group, and Shennong Development [2][3] - New Hope Group ranked 39th with a revenue of 268.265 billion yuan, while Beijing Shounong Food Group ranked 84th with 150.846 billion yuan [4][8] - Other notable rankings include Muyuan Foods at 94th with 142.879 billion yuan, Bright Food at 102nd with 126.958 billion yuan, and Haida Group at 112th with 114.601 billion yuan [4][8]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The investment logic for the pig industry continues to strengthen due to dual catalysts from policies and diseases, with a recommendation for long-term positioning despite current price lows [3][5] - The pet food export volume continues to grow year-on-year, indicating a sustained positive trend in the pet food market [4][28] Summary by Sections Weekly Observation - The pig price is running at a low level, with the national average price at 12.71 yuan/kg as of September 21, 2025, down 0.50 yuan/kg week-on-week and down 5.73 yuan/kg year-on-year [3][13] - The average weight of pigs sold is 128.45 kg, showing a slight increase week-on-week and year-on-year [3][13] - The pig industry is expected to see a strong execution of policies aimed at capacity reduction, which will enhance the expectations for substantial capacity reduction [3][13] Weekly Viewpoint - The investment logic for the pig industry is marginally improving, with a recommendation for companies such as Muyuan Foods, Wens Foodstuff Group, and others [5][24] - The domestic feed market is benefiting from the post-cycle of poultry and livestock, with strong overseas demand supporting prices [5][25] - The pet food sector is experiencing a rise in domestic brands due to consumption upgrades and tariff barriers [5][28] Market Performance (September 15-19) - The agricultural index underperformed the market by 1.40 percentage points, with the agricultural index down 2.70% [6][29] - Leading stocks included Shennong Biotechnology (+9.36%), Xuelong Biotechnology (+7.64%), and Tianma Technology (+3.90%) [6][29] Price Tracking (September 15-19) - The average price of pigs was 12.68 yuan/kg, down 0.66 yuan/kg from the previous week [7][37] - The average price of piglets was 22.38 yuan/kg, down 1.57 yuan/kg week-on-week [7][37] - The average price of beef was 65.60 yuan/kg, showing a slight increase [44][37] Key News (September 15-19) - Notification regarding the central reserve frozen pork storage auction scheduled for September 23, 2025, with 15,000 tons available for auction [35]

Investment Rating - Industry Rating: Outperform the market (maintained rating) [12] Core Views - The report emphasizes the deteriorating profitability in the pig farming sector, highlighting the need to focus on the pig segment due to its undervaluation and expectation differences [1][2] - The dairy and beef sectors are noted for potential recovery, with the beef super cycle possibly starting, suggesting investment opportunities in these areas [3][18] - The pet industry is experiencing rapid growth, with domestic brands rising and pet food exports showing positive trends, indicating a robust market for investment [4][19] - The poultry sector is advised to focus on breeding gaps and improving consumption demand, particularly for yellow chickens, which may see price improvements [5][20][23] - The planting sector is encouraged to pivot towards biological breeding opportunities amidst a tight grain supply-demand balance [8][25] - The feed sector is highlighted for its market share growth and consistent performance, particularly recommending Haida Group [9][27] Summary by Sections Pig Farming Sector - Current average pig price is 12.94 CNY/kg, down 4.15% from last week, with self-breeding profits narrowing to 7.7 CNY/head [1][16] - The average weight of pigs at market is at a historical high, indicating continued pressure on prices [1][16] - The report suggests focusing on leading companies like Muyuan Foods and Wens Foodstuff, which are currently undervalued [2][17] Beef Sector - Live cattle prices are at 27.16 CNY/kg, showing a 10.9% year-on-year increase, while fresh milk prices are stable [3][18] - The report anticipates a recovery in raw milk prices and potential price increases in beef due to reduced supply and improved demand [3][18] Pet Industry - The pet economy is thriving, with significant growth in domestic brands and pet food exports increasing by 6.64% year-on-year [4][19] - Recommended companies include Guibao Pet Food, Zhongchong Co., and Petty Co. [4][19] Poultry Sector - The report highlights the need to monitor breeding imports and the potential for price recovery in yellow chickens due to improved demand [5][20][23] - Key recommendations include Shengnong Development and Yisheng Biological [5][22] Planting Sector - Emphasis on improving grain yield through better seed and agricultural practices, with a focus on biotechnology [8][25] - Recommended companies include Longping High-Tech and Dabeinong [8][25] Feed Sector - Haida Group is recommended for its market share growth and consistent performance amidst a recovering market [9][27] - The report notes a significant exit of small players from the market, leading to improved conditions for remaining companies [9][27]

Core Viewpoint - The company, Haida Group, engaged with investors during an online event on September 19, 2025, discussing various aspects of its business development and future goals. Group 1: Business Goals and Performance - The company aims to achieve a feed sales target of 51.5 million tons by 2030, with 14.7 million tons already realized in the first half of 2025. The short-term goal is to reach an additional 3 million tons by 2025, and the overseas feed sales are expected to reach 7.2 million tons by 2030 [2] - The company reported a revenue of 770 million yuan from its seedling business, primarily from shrimp seedlings, but did not disclose the revenue breakdown or future growth expectations for the next three years [2] - Poultry feed sales increased by 24%, despite the overall losses in the poultry farming industry, showcasing the company's ability to leverage its R&D and professional advantages to meet diverse consumer needs [2] Group 2: Competitive Advantages and Cost Structure - The company's core competitive advantage lies in its R&D-driven superior feed products, quality seedling solutions, and a technical service system that creates value for customers and enhances customer loyalty [2] - The cost structure for pig farming includes costs for piglets and fattening, with a decrease in fattening costs due to falling raw material prices, although the company did not specify the advantages of its "light asset model" compared to industry averages [2] - The company is leading innovations in front-end pig feed products, integrating various technologies to promote animal growth and health [2] Group 3: Aquaculture and Shrimp Feed Growth - Aquaculture feed sales grew by 16%, driven by the "seedling + feed + medicine + management" approach for South American white shrimp, although specific growth figures were not provided [2]

Investment Rating - The industry is rated as "Maintain Buy" [3] Core Viewpoints - The pig price has rapidly dropped below 13 yuan/kg, leading to a decrease in self-breeding and self-raising profitability to -24.44 yuan/head, a reduction of 41.29 yuan/head from the previous week. The high supply pressure is expected to continue to weigh on pig prices. The average weight of pigs has increased to 128.45 kg, up 0.5% from the low point in early August. The feed data shows a month-on-month increase in fattening feed prices of 5.6%, 6.6%, and 5.8% from June to August. The government is expected to implement policies to stabilize production and limit breeding in response to the price pressure [1][13][14] - The average selling price of lean meat pigs nationwide is 12.82 yuan/kg, down 3% from last week, while the average wholesale price of pork is 19.48 yuan/kg, down 2% [2][15] - The poultry sector shows mixed results, with the price of white feather chickens at 6.88 yuan/kg, down 2%, while chicken product prices remain stable at 8.65 yuan/kg. The price of meat chicken seedlings is 3.15 yuan each, down 3.1% [14][31] - The planting and agricultural products sector is expected to benefit from the commercialization of genetically modified varieties, with potential growth opportunities for industry companies [14] - The livestock support sector is experiencing increased price volatility, with leading feed companies likely to replace smaller competitors due to their advantages in procurement, scale, and capital [14] Summary by Sections Pig Farming - The average selling price of lean meat pigs is 12.82 yuan/kg, down 3% from last week [15] - Self-breeding and self-raising profitability is -24.44 yuan/head, down 41.29 yuan/head from the previous week [19] - The average weight of pigs has increased to 128.45 kg, showing a recovery trend [13] Poultry Farming - The price of white feather chickens is 6.88 yuan/kg, down 2% [31] - The price of meat chicken seedlings is 3.15 yuan each, down 3.1% [29] - The average price of chicken products remains stable at 8.65 yuan/kg [31] Agricultural Products - The commercialization of genetically modified varieties is expected to enhance growth potential for industry companies [14] Livestock Support - Leading feed companies are expected to gain market share over smaller competitors due to their advantages [14]

Group 1: Feed Business Goals - The target feed sales volume for 2030 is 51.5 million tons, with a short-term goal of an increase of 3 million tons by 2025 [2] - In the first half of 2025, 14.7 million tons of feed sales have already been achieved [2] - The overseas feed sales volume is expected to reach 7.2 million tons by 2030 [2] Group 2: Aquaculture and Shrimp Farming - The survival rate and yield per acre of factory-farmed shrimp have significantly improved compared to traditional methods, leading to reduced costs [3] - The company’s shrimp seed business generated revenue of 770 million yuan, with a focus on shrimp and fish seed sales [3] Group 3: Poultry and Pig Feed Performance - Poultry feed sales increased by 24%, despite the overall industry facing losses and intense competition [3] - The company achieved a 43% increase in pig feed sales, with technological advantages in front-end feed products [4] - The cost of pig farming using a "light asset model" has improved due to advancements in breeding and resource allocation [4] Group 4: Water Feed and Overall Strategy - Water feed sales increased by 16%, with effective management solutions for South American white shrimp [4] - The company provides a comprehensive solution for farmers, including seeds, feed, medicine, and management guidance, enhancing its core competitiveness [4]

Market Overview - The feed sector increased by 0.29% on September 19, with Tianma Technology leading the gains [1] - The Shanghai Composite Index closed at 3820.09, down 0.3%, while the Shenzhen Component Index closed at 13070.86, down 0.04% [1] Key Performers in the Feed Sector - Tianma Technology (603668) closed at 15.20, up 4.83% with a trading volume of 321,600 shares and a turnover of 486 million yuan [1] - Jin Xin Nong (002548) closed at 5.22, up 4.19% with a trading volume of 1,024,900 shares and a turnover of 521 million yuan [1] - Tian Kang Biological (002100) closed at 7.68, up 1.86% with a trading volume of 563,400 shares and a turnover of 427 million yuan [1] Capital Flow Analysis - The feed sector experienced a net outflow of 80.65 million yuan from institutional investors, while retail investors saw a net inflow of 5.61 million yuan [2] - The main capital inflow was observed in Jin Xin Nong, with a net inflow of 55.77 million yuan from institutional investors [3] - Hai Da Group (002311) had a net inflow of 18.08 million yuan from institutional investors, indicating positive sentiment [3]

Group 1 - A new company, Chifeng Shengfeng Dachuan Feed Co., Ltd., has been established with a registered capital of 45 million yuan [1] - The company's business scope includes feed production, sales of livestock and fishery feed, sales of feed raw materials, and sales of feed additives [1] - The company is jointly held by Haida Group (002311) and other stakeholders [1]