Zheng Quan Shi Bao Wang·2025-07-09 00:22Core Viewpoint - The leading chicken producer, Shengnong Development, is expected to report a significant increase in net profit for the first half of the year, with projections indicating a growth of over 700% compared to the previous year [2]. Financial Performance - Shengnong Development anticipates a net profit attributable to shareholders of between 850 million to 950 million yuan, representing a year-on-year increase of 732.89% to 830.88% [2]. - The company's non-recurring net profit is projected to be between 330 million to 420 million yuan, reflecting a year-on-year growth of 256.20% to 353.35% [2]. - The expected net profit midpoint suggests that the company's earnings for the first half of the year may reach a five-year high [2]. Growth Drivers - The company attributes its performance improvement to three main factors: 1. Continued rapid growth in retail channels, with stable growth in export and catering sectors, leading to an optimized revenue structure [2]. 2. Strengthened cost advantages through lean management practices and increased self-use of the new self-developed chicken breed "Shengze 901 Plus," resulting in a significant reduction in overall meat production costs compared to the same period last year [2]. 3. The completion of the controlling merger with Taiyanggu, generating an investment income of approximately 540 million to 550 million yuan, alongside improved operational efficiency from prior industry empowerment and lean management [2]. Sales Performance - In the sales report for May, Shengnong Development noted stable growth in fresh food product sales and a 9% increase in deep-processed product sales, with the proportion of deep-processed products continuing to rise [2]. Stock Performance - Following the profit forecast announcement, Shengnong Development's stock price rose rapidly, with an increase of over 20% from January 13 to April 11 [3]. - Recently, the stock has experienced a slight increase over six consecutive trading days, with a cumulative rise of 5.74%, although it remains 14.86% below its year-to-date high [3].