Market Performance - The market rebounded last week, with the China Securities Xinhua National Brand Index rising by 0.94% to 1666.03 points [1] - The Shanghai Composite Index increased by 0.76%, the Shenzhen Component Index by 0.52%, the ChiNext Index by 1.38%, and the CSI 300 Index by 1.12% [1] Strong Stock Performances - Notable strong performers in the brand index included BGI Genomics, which rose by 17.27%, and Yiling Pharmaceutical, which increased by 9.81% [1] - Other significant gainers included Stone Technology and Marubi Biological, which rose by 7.18% and 6.79%, respectively [1] Year-to-Date Stock Gains - Since the beginning of 2025, Marubi Biological has surged by 60.82%, leading the gains, followed by Shanghai Jahwa with a 46.72% increase and BGI Genomics with a 34.45% rise [2] - Other stocks with notable increases include Anji Technology, Xintai, and Weir Shares, each rising over 20% [2] Market Outlook - Institutions expect the market to refocus on domestic economic fundamentals, with a positive policy response anticipated [2][3] - The current market is viewed as being in a high cost-performance range, with significant policy support expected to stabilize the economy and market [2] Economic Data Focus - Attention is drawn to upcoming economic data, particularly export performance and the sustainability of the export supply chain recovery [3] - The prevailing market conditions are supported by policy measures and liquidity easing, which are expected to bolster the stability of the domestic economy and capital markets [3]

Group 1 - The core point of the article is that Haida Group has invested 50 million to exclusively use a gene-editing technology for "spine-free grass carp" for a period of 20 years, which has sparked discussions in the industry [2][3][15] - The technology involves identifying and knocking out the key gene responsible for the development of small bones in grass carp, making it safer for consumption [5][6][8] - Currently, no gene-edited animals have been approved for market in China, which raises questions about the strategic reasoning behind Haida's investment in a technology that cannot yet be commercialized [12][14] Group 2 - The investment may be a strategic move to position the company ahead of potential regulatory changes that could allow gene-edited fish to enter the market in the future [19][20] - If spine-free grass carp becomes available for sale, it could address consumer pain points, enhance product value, and increase market acceptance [24][25] - The technology could strengthen Haida's competitive edge by creating a more robust supply chain and enabling the introduction of additional gene-editing technologies [26][27] Group 3 - The gene-editing technology could serve as a critical competitive advantage in the global aquaculture market, as countries like Japan and the U.S. have already approved gene-edited fish for consumption [17][18][30] - This investment may also prepare Haida for international competition by developing advanced breeding technologies that could lead to a stronger market position [29][31] - The transaction could potentially mark the beginning of a technological revolution in aquaculture breeding in China, paving the way for the first gene-edited fish to reach consumers [32][33]

Investment Rating - The report maintains a "Positive" outlook on the Agriculture, Forestry, Animal Husbandry, and Fishery industry [2] Core Insights - The overall revenue of the industry remains stable, with significant improvement in the profitability of the breeding chain. In 2024, the SW Agriculture, Forestry, Animal Husbandry, and Fishery industry achieved total operating revenue of CNY 12,411.05 billion, a year-on-year decline of 1.67%. The net profit attributable to shareholders was CNY 479.85 billion, marking a turnaround from losses in 2023. In Q1 2025, the industry achieved total operating revenue of CNY 2,907.39 billion, a year-on-year increase of 8.09%, with net profit attributable to shareholders reaching CNY 133.35 billion, a significant increase compared to the same period last year [4][17][22]. Summary by Sections 1. Agriculture, Forestry, Animal Husbandry, and Fishery Industry - The industry shows overall stable revenue with a significant improvement in profitability. The operating revenue for 2024 was CNY 12,411.05 billion, down 1.67% year-on-year, while the net profit was CNY 479.85 billion, indicating a recovery from losses in 2023. In Q1 2025, the revenue increased by 8.09% year-on-year to CNY 2,907.39 billion, with net profit rising significantly [4][17][22]. 2. Swine Industry - The profitability of the swine industry has improved significantly, with major companies like Muyuan Foods, Wens Foodstuff Group, and New Hope Liuhe reporting revenue growth of 24.43%, 16.64%, and -27.27% respectively in 2024. The net profit for these companies increased by 519.42%, 244.46%, and 90.50% respectively. In Q1 2025, the top five swine companies saw substantial net profit growth, with Shen Nong Group leading at 6510.85% [30][45]. 3. Animal Health - The animal health sector faced significant pressure, with many companies experiencing revenue declines in 2024. However, Q1 2025 showed signs of recovery, particularly in the chemical drug segment, driven by a rebound in prices of veterinary raw materials. The top three companies in revenue growth for Q1 2025 were Huisheng Biological, Jinhai Biological, and Ruipu Biological, with increases of 20.42%, 7.58%, and 5.97% respectively [49][50]. 4. Feed Industry - The feed industry experienced a decline in total production in 2024, with a 2.10% drop year-on-year. However, revenue began to recover in Q1 2025, with leading companies like Bangji Technology and Haida Group showing significant growth. The average gross profit per ton for major feed companies also improved, with Haida Group achieving a gross profit margin of 12.66% in Q1 2025 [62][65][68]. 5. Poultry Industry - The poultry sector showed varied performance across different categories. In 2024, the top three companies in revenue growth were Xiaoming Co., Lihua Co., and Xiangjia Co., with increases of 16.83%, 15.44%, and 8.06% respectively. The profitability of the poultry industry improved significantly, with Lihua Co. leading in net profit growth at 447.72% [76][78].

Investment Rating - The investment rating for the company is "Buy" and is maintained [6] Core Views - The company set a target for 2024 feed sales growth of 3 million tons, representing a year-on-year increase of 12%. In the first quarter, the year-on-year growth exceeded 25%, surpassing the planned growth rate. The company's performance in the first quarter was better than expected, aided by profits from pig futures hedging. The price of aquatic products is expected to recover by the end of 2024, and the overall price trend in 2025 remains strong, which will drive domestic aquatic feed growth. The long-term potential for feed exports is significant, supporting the company's main business performance growth. The projected main business performance for 2025 and 2026 is 3.85 billion and 4.6 billion yuan, respectively, with a valuation of 10 billion yuan for the breeding business, corresponding to current main business valuations of 21X and 18X, respectively, and the company is continuously recommended [2][4][9] Summary by Sections Financial Performance - In 2024, the company achieved revenue of 114.6 billion yuan, a year-on-year decrease of 1.3%, and a net profit attributable to shareholders of 4.5 billion yuan, a year-on-year increase of 64.3%. In the first quarter of 2025, the company achieved revenue of 25.63 billion yuan, a year-on-year increase of 10.6%, and a net profit attributable to shareholders of 1.28 billion yuan, a year-on-year increase of 49.0% [4][9] Feed Segment - The company plans to sell 24.42 million tons of feed in 2024, a year-on-year increase of 8%, with poultry feed, pig feed, and aquatic feed growing by 12%, -3%, and 11%, respectively. In the first quarter of 2025, feed sales reached 5.95 million tons, a year-on-year increase of 25%, with poultry feed, pig feed, and aquatic feed growing by 20%, 35%, and 20%, respectively. The overseas sales volume increased by 40% year-on-year [9] Breeding Business - The company plans to sell 6 million pigs in 2024, contributing 1.4 to 1.5 billion yuan to performance. In the first quarter of 2025, approximately 1.6 million pigs were sold, with the self-breeding cost reduced to around 13 yuan per kilogram, contributing about 600 million yuan to profits [9] Aquaculture and Seedling Business - The aquaculture segment is expected to recover due to the rebound in fish prices by the end of 2024, and the company has actively reduced production to minimize losses. The seedling business faced delays in stocking due to adverse weather, with profits remaining stable in the first quarter of 2025 [9]

Group 1: Haida Group - Haida Group has set short-term and medium-term goals for its feed business, targeting an increase of 3 million tons by 2025 and 51.5 million tons by 2030 [1] - The company emphasizes the importance of core technological capabilities, particularly in breeding technology, farming models, and feed technology [1] - The overseas strategy focuses on Southeast Asia, Africa, and South America, with capital expenditures aimed at overseas capacity construction and domestic equipment upgrades [1] - The company is exploring a light-asset, low-risk pig farming model and aims to maintain procurement advantages through technological research and development [1] - In aquaculture, factory-based shrimp farming will be a key focus, with plans for future expansion [1] - The company anticipates distributing 1.8 billion yuan in cash dividends for the fiscal year 2024 [1] Group 2: Jingsheng Technology - Jingsheng Technology experienced profit declines in Q4 2024 and Q1 2023 due to changes in product sales structure and reduced gross margins in the photovoltaic business [2] - The company is responding to these challenges by enhancing automation levels in control systems and advancing equipment upgrades [2] - Despite the profit decline, R&D expenses for 2024 are expected to increase by 16.39% compared to 2023, as the company views R&D investment as essential for enhancing core competitiveness [2] - The company aims to balance long-term investments with short-term benefits through cost optimization and efficiency improvements [2] - Jingsheng Technology plans to focus on top-tier enterprise clients in the silicon carbide industry to help them enhance market competitiveness while exploring other product demands [2] Group 3: Anji Technology - Anji Technology continues to invest in R&D in the fields of electroplating solutions and additives, with local production progressing smoothly in 2024 [3] - The company reports significant growth in functional wet electronic chemicals, particularly in post-etching and post-polishing cleaning solutions, with an increased proportion of advanced process products [3] - Anji Technology adheres to a globalization strategy, with ongoing collaboration projects with overseas clients [3] - The company expects an improvement in gross margins in 2024 due to product diversification and enhanced production efficiency [3] - In Q1 2025, revenue may not align with some clients' performance due to a broad business scope and low customer concentration, leading to cautious demand outlook in the second half of the year [3] - The company is strengthening its ability to supply core raw materials independently to enhance product stability and competitiveness [3]

Group 1: Haida Group - Haida Group has set short-term and medium-term goals for its feed business, targeting an increase of 3 million tons by 2025 and 51.5 million tons by 2030 [1] - The company emphasizes the importance of core technological capabilities, particularly in breeding technology, farming models, and feed technology [1] - The overseas strategy focuses on Southeast Asia, Africa, and South America, with capital expenditures aimed at overseas capacity construction and domestic equipment upgrades [1] - The company is exploring a light-asset, low-risk pig farming model and aims to maintain procurement advantages through technological research and development [1] - In aquaculture, factory-based shrimp farming has become a key focus, with plans for future expansion [1] - The company plans to distribute 1.8 billion yuan in cash dividends for the year 2024 [1] Group 2: Jiangsu Shentong - Jiangsu Shentong continues to invest in R&D in the nuclear valve sector, successfully launching products that meet the requirements of third and fourth-generation nuclear power technologies [2] - The company expects to complete bidding by the end of 2025 to early 2026, with phased deliveries of nuclear valve products over the next 2-3 years [2] - The gross margin stands at 36.75%, within a normal fluctuation range [2] - The company emphasizes the management of accounts receivable and has implemented various measures to reduce bad debt risks [2] - Future profit growth is concentrated in key areas such as nuclear power, hydrogen energy, semiconductor equipment, and marine engineering [2] Group 3: Anji Technology - Anji Technology continues R&D in electroplating solutions and additives, with local production progressing smoothly in 2024 [3] - The company has seen significant growth in functional wet electronic chemicals, particularly in post-etch cleaning and post-polishing cleaning solutions [3] - The gross margin is expected to improve in 2024 due to product diversification and enhanced production efficiency [3] - The company is strengthening its supply capability of core raw materials to enhance product stability and competitiveness [3] - Product pricing is determined by market mechanisms, taking into account customer demand and other factors [3]

Group 1 - The core viewpoint of the news is that Haidai Group has set ambitious short-term and mid-term goals for its feed business, aiming for an increase of 3 million tons by 2025 and a total sales volume of 51.5 million tons by 2030 [1] - Haidai Group emphasizes the importance of core technological capabilities, particularly in breeding technology, farming models, and feed technology [1] - The company's overseas strategy focuses on Southeast Asia, Africa, and South America, with capital expenditures directed towards overseas capacity construction and domestic equipment upgrades [1] Group 2 - Haidai Group is exploring a light-asset, low-risk pig farming model and aims to maintain procurement advantages through technological research and development [1] - In aquaculture, the company is prioritizing industrialized shrimp farming and plans to expand its scale in the future [1] - The company is considering mergers and acquisitions primarily for capacity layout, while facing challenges in capacity expansion in overseas markets [1] Group 3 - For the fiscal year 2024, Haidai Group is expected to distribute a cash dividend of 1.8 billion yuan [1]

Summary of Haida Group's Conference Call Company Overview - **Company**: Haida Group - **Industry**: Animal Feed and Aquaculture Key Points and Arguments - **International Market Expansion**: Haida Group is actively expanding into overseas markets, particularly in emerging regions such as Asia-Pacific, Latin America, and Africa, aiming for 7.2 million tons of overseas feed sales by 2030 [2][8] - **Profitability in Overseas Markets**: The profitability in overseas markets is higher than in domestic markets due to a more relaxed competitive environment and structural opportunities, especially in aquaculture feed, where the Asia-Pacific region holds 70% of the global market share [2][5] - **Aggressive Business Strategy**: The company adopts an aggressive business strategy prioritizing sales volume, reducing costs through formulation and procurement, and leveraging economies of scale to lower manufacturing costs before pursuing profit per ton [2][6] - **Integrated Industry Chain Approach**: Haida Group implements an integrated industry chain strategy, combining shrimp seedlings, animal health, and feed technology services to provide comprehensive solutions that enhance survival rates and effectiveness in aquaculture, particularly for large farm owners [2][6] - **Focus on Key Countries**: The company emphasizes a strategy of deepening its presence in key countries, achieving significant market share in specific regions, such as a 45% market share in the Vietnamese duckling market [3][6] Additional Important Insights - **Domestic Market Growth**: In the domestic market, Haida Group's pig feed business showed strong growth, with a 30% increase in Q1 and a 40% increase in April 2025, supported by a successful OEM model that builds customer trust and brand premium [4][9] - **Financial Projections**: The company raised its 2025 target market value to 105 billion yuan, based on a feed growth forecast of 13% to 15%, with plans to achieve 7 billion yuan in feed business profits by 2030 [4][13][14] - **Water Feed Business Outlook**: The water feed business is expected to exceed the annual growth target of 10% to 15% due to stable fish prices and recovery trends in specific feed categories [11] - **Contribution from Pig Farming**: Despite facing downward pressure from the pig cycle, pig farming is projected to contribute 10 billion yuan in profits for 2025, with ongoing exploration of new breeding models to reduce costs [12] - **Future Growth Path**: The growth trajectory for Haida Group is expected to be steep, with significant improvements anticipated in 2025 and 2026, and no ceiling for overseas business expansion [15]

Core Points - The China Securities Index (CSI) Huaxia Economic Blue Chip Index increased by 0.84% to 8059.07 points with a trading volume of 260.673 billion yuan [1] - Over the past month, the CSI Huaxia Economic Blue Chip Index has risen by 2.42%, but it has decreased by 1.82% over the last three months and by 1.22% year-to-date [1] Index Composition - The index selects blue-chip securities with good financial fundamentals, with industry weights allocated based on their contribution to the national economy [1] - The top ten holdings in the index are: China Telecom (2.39%), Muyuan Foods (2.3%), China State Construction (2.24%), Wens Foodstuff Group (2.09%), China Merchants Bank (1.97%), China Duty Free Group (1.96%), Digital China (1.94%), China Railway (1.67%), Haida Group (1.59%), and COSCO Shipping Holdings (1.43%) [1] - The index is primarily composed of stocks from the Shanghai Stock Exchange (60.11%) and the Shenzhen Stock Exchange (39.89%) [1] Industry Breakdown - The industry composition of the index includes: Industrial (19.40%), Consumer Discretionary (16.55%), Information Technology (12.42%), Consumer Staples (10.43%), Materials (9.58%), Communication Services (9.08%), Financials (8.53%), Real Estate (4.64%), Health Care (3.86%), Utilities (2.88%), and Energy (2.61%) [2] - The index samples are adjusted semi-annually, with adjustments occurring on the next trading day after the second Friday of June and December [2] - Weight factors are generally fixed until the next scheduled adjustment, with special circumstances allowing for temporary adjustments [2]

Group 1: Business Outlook and Goals - The company aims to achieve a short-term target of 3 million tons in feed business by 2025 and a mid-term target of 51.5 million tons by 2030, including 5 million tons for self-use in farming and overseas sales [2] - The overseas feed sales target is projected to reach 7.2 million tons by 2030 [2] - The company is exploring light-asset pig farming and factory shrimp farming as future core businesses [2] Group 2: Competitive Advantages - The company emphasizes a "technology-heavy, team-oriented, and asset-light" development strategy, focusing on core technological capabilities as the foundation for long-term growth [3] - Key technological areas include breeding technology, farming models, and feed technology, which provide a broad development space for the company's diverse business [3] Group 3: Overseas Strategy - The company is expanding in Southeast Asia with Vietnam as the core, and is also targeting markets in Indonesia, Bangladesh, and Malaysia [4] - In Africa, Egypt serves as a hub for expansion into North and East Africa [4] - The company has established a presence in Ecuador for South American market development [4] Group 4: Capital Expenditure Plans - Capital expenditure will focus on overseas capacity construction and expansion, while domestic spending will prioritize upgrading existing capacity [5] Group 5: Procurement Advantages - The company maintains a secure and controllable supply chain, primarily sourcing corn domestically and importing soybeans from Brazil and Argentina [7] - The company has a robust R&D team dedicated to animal nutrition and feed formulation, allowing for flexibility in response to agricultural price fluctuations [8] Group 6: Aquaculture Plans - The company primarily cultivates shrimp and other specialty aquatic products, utilizing factory farming techniques that enhance safety and quality [9] - Future plans include expanding shrimp farming scale based on professional team capabilities [9] Group 7: Mergers and Acquisitions - Domestic acquisitions are aimed at capacity supplementation, while overseas acquisitions focus on supporting market development [10] Group 8: Challenges in Overseas Markets - The company faces challenges in capacity expansion due to varying difficulties and efficiencies in different countries [11] Group 9: Dividend Policy - The company plans to distribute cash dividends of 1.8 billion yuan in 2024, with future distributions based on actual operating conditions [12]