Company Overview - Hefei Hengxin Life Technology Co., Ltd. is set to launch its initial public offering (IPO) and will be listed on the Shenzhen Stock Exchange's ChiNext board on March 19, 2025 [1] - The company will issue 25.50 million shares, accounting for 25.00% of the total share capital post-IPO [3] IPO Details - The IPO price is set at 39.92 CNY per share, which is below the average static price-to-earnings (P/E) ratio of 20.68 for the paper and paper products industry as of March 3, 2025 [3][6] - The total share capital after the IPO will be 102 million shares [5] Industry Context - The company operates in the "C22 Paper and Paper Products Industry" as classified by the China Listed Companies Association [3] - The average static P/E ratio for comparable A-share listed companies in the same industry is reported to be 37.91 [6]

Investment Rating - Industry rating: Outperform the market (maintained rating) [11] Core Views - The pig sector shows a divergence between pig prices and piglet prices, with pig prices rebounding while piglet prices continue to decline. The average price of pigs is 14.87 CNY/kg, up 1.09% from last week, with an average profit of approximately 225 CNY per head for self-breeding and self-raising operations [1][15] - The poultry sector is experiencing low valuations and elasticity, particularly in the white chicken segment, where supply pressures are exacerbated by restrictions on overseas breeding imports due to avian influenza outbreaks [3][17] - The feed sector is recommended for investment due to a fundamental turning point and relatively low valuations, with Hai Da Group highlighted as a key player [5][21] Summary by Sections Pig Sector - Pig prices have rebounded, with an average price of 14.87 CNY/kg as of February 22, 2025, while piglet prices are declining, indicating a potential short-term weakness in piglet pricing [1][15] - Supply remains low with an average slaughter weight of 125.68 kg, and the proportion of pigs over 150 kg is 4.11% [1][15] - The sector is considered undervalued, with major companies like Muyuan Foods and Wens Foodstuffs having head valuations below 2000 CNY per head, suggesting potential for recovery [2][16] Poultry Sector - The white chicken segment faces supply pressure due to halted overseas breeding imports, leading to a significant drop in domestic breeding stock [3][17] - Chicken prices have stabilized, with the average price for live chickens at 2.80 CNY per bird, and expectations for price recovery as processing plants resume operations [3][17] - Investment recommendations include Shengnong Development and other companies in the poultry sector due to anticipated demand recovery [4][18] Feed Sector - Hai Da Group is highlighted as a key investment opportunity due to improving market conditions in aquaculture feed after a prolonged downturn [5][21] - The prices of various aquatic products have shown a mixed trend, with some prices increasing due to supply constraints [5][21] Seed and Agricultural Technology - The application of genetically modified technology is expected to accelerate, enhancing the competitiveness of leading seed companies [7][23] - The low-altitude economy is identified as a growth area, with significant potential for agricultural applications of drones [7][23] Pet Sector - Domestic pet brands are rapidly growing, with significant sales increases in pet food, indicating a robust market for local brands [9][25] - Pet food exports have also seen substantial growth, reflecting a healthy export market [9][25] - Recommended companies in the pet sector include Guibao Pet and Zhongchong Co., Ltd. due to their strong market positions [9][27]