NEW HOPE(SZ:000876) Xi Niu Cai Jing·2025-06-23 01:41Core Viewpoint - New Hope has successfully navigated through the most challenging phase of the pig cycle and is now focusing on feed and pig farming as its core business areas, demonstrating strong profitability amid industry adjustments [1][3]. Financial Performance - In 2024, New Hope reported operating revenue of 103.06 billion yuan, a decrease of 27.27% year-on-year, while net profit reached 474 million yuan, an increase of 90.05% year-on-year. The non-recurring net profit was 614 million yuan, up 113.33% year-on-year, indicating significant profit improvement through cost control and optimization of non-recurring gains [1]. - The Q1 2025 report showed operating revenue of 24.42 billion yuan, a year-on-year increase of 2.13%, with a net profit of 445 million yuan [1]. Business Strategy - The company aims to reduce pig farming costs to below 13 yuan per kilogram, with current operational costs around 13 yuan per kilogram, while also planning to expand overseas feed production capacity by 3 to 4 million tons over the next 3 to 5 years [3][4]. - New Hope is focusing on enhancing its overseas feed business, which is expected to become a significant growth driver, leveraging faster cash flow and higher profit margins compared to domestic operations [4]. Technological Advancements - The application of AI models in the livestock industry is accelerating research and development, with innovations such as portable weight estimation devices that achieve over 98% accuracy in predicting pig weights [5][6]. - New Hope has developed various innovative applications in breeding, including genetic evaluation systems and automated selection systems, which align Chinese breeding practices with global standards [7]. Market Outlook - The company is optimistic about the future of pig prices, noting that improved disease control capabilities in the industry may lead to different price trends compared to the past three years [4].