NEW HOPE(SZ:000876) Mei Ri Jing Ji Xin Wen·2025-11-12 07:58Core Viewpoint - The recent decline in pig prices and the adjustment of breeding capacity are significant topics of discussion in the industry, with New Hope facing substantial losses in its pig farming business due to low market prices [2][5]. Group 1: Financial Performance - New Hope reported a net profit of 7.6 billion yuan for the first three quarters, a year-on-year increase of nearly 400%, with a net profit of 513 million yuan in the third quarter [3]. - The company's feed business generated a net profit of 10.3 billion yuan in the first three quarters, up 23% year-on-year, maintaining a monthly profit level exceeding 1 billion yuan [3]. - However, the pig farming segment incurred a cumulative loss of 180 million yuan in the first three quarters, with a loss of 230 million yuan in the third quarter alone due to rapidly falling pig prices [4][5]. Group 2: Market Conditions - The current pig price is around 11 yuan per kilogram, leading to widespread losses across the industry, affecting many leading enterprises [2][5]. - The decline in pig prices is attributed to high breeding stock levels from last year, resulting in a peak in market supply and increased efficiency in pig farming [5]. Group 3: Strategic Adjustments - New Hope plans to gradually reduce the breeding sow inventory by the end of January next year, which will also lead to a decrease in the number of pigs marketed [2][7]. - The company is shifting its breeding strategy to increase the proportion of self-breeding and self-fattening pigs, moving from a previous ratio of 30:70 to 35:65 [7]. - New Hope is not currently pursuing overseas expansion in pig farming but is focusing on optimizing domestic production capacity under favorable policy conditions [7][8]. Group 4: Overseas Business Development - New Hope has seen significant growth in its overseas feed business, with a sales growth rate of 21% in the first three quarters, supported by improved financial conditions [8]. - The company aims to increase its overseas feed production capacity to 10 million tons by 2028, aligning with a sales target of 9 million tons [8].