Zheng Quan Zhi Xing·2025-08-27 04:33Core Viewpoint - Company released its 2025 semi-annual report, showing strong performance with revenue of 2.798 billion yuan, a year-on-year increase of 12.16%, and a net profit of 388 million yuan, up 212.65% year-on-year [1][2] Financial Performance - In H1 2025, the company achieved a comprehensive gross margin of 21.89%, an increase of 9.66 percentage points year-on-year, and a period expense ratio of 7.76%, down 0.38 percentage points year-on-year [2] - In Q2 2025, revenue was 1.326 billion yuan, a decrease of 6.10% year-on-year, with a net profit of 159 million yuan, up 24.63% year-on-year [1][2] Livestock Production - H1 2025 saw a 41% year-on-year increase in pig sales, with a target of 3.2 to 3.5 million pigs for the year [3] - The company sold 1.5395 million pigs in H1 2025, a 40.93% increase year-on-year, generating sales revenue of 2.505 billion yuan, up 29.06% year-on-year [3] Cost Management - The decline in feed raw material prices and enhanced management practices contributed to improved profitability, with the cost of pig farming decreasing year-on-year [3] - The complete cost for excellent farms is now below 12 yuan/kg [3] Slaughtering Business - The slaughtering business generated revenue of 575 million yuan in H1 2025, a decrease of 19.24% year-on-year, but the gross margin improved to 8.07%, up 3.34 percentage points year-on-year [4] - The company is focusing on increasing product scale and market share in the slaughtering segment [4] Investment Outlook - The company is positioned within the entire pig industry chain, including feed processing, pig farming, slaughtering, and fresh pork sales, benefiting from leading farming costs and high growth in pig sales [4] - EPS forecasts for 2025 and 2026 are 1.28 yuan and 1.33 yuan, respectively, with corresponding PE ratios of 27 times and 26 times [4]