TECON(SZ:002100) Xin Lang Cai Jing·2025-12-16 10:20Core Viewpoint - TianKang Biological has officially completed the acquisition of 51% of Xinjiang Qiangdu Animal Husbandry Technology Co., Ltd. for 1.275 billion yuan, despite facing declining pig prices and significant financial pressure [1][2]. Financial Performance - TianKang Biological's net profit has significantly declined, with a 74.58% drop in the third quarter compared to the previous year, leading to lowered profit forecasts for 2025 and 2026 by several brokerages [5][7]. - The company's cash and short-term debt situation shows a cash ratio of 1.17, indicating potential financial strain from the acquisition [1][6]. Acquisition Details - The acquisition involves a total valuation of 3.511 billion yuan for Qiangdu Animal Husbandry, with a 69.54% premium over the assessed value [2]. - Qiangdu is expected to contribute approximately 136,000 pigs in 2024 and over 150,000 in 2025, which will increase TianKang's total output to 480,000 pigs [2][3]. Market Conditions - The pig farming industry is currently experiencing a downturn, with prices dropping below production costs, which poses risks to profitability for both TianKang and Qiangdu [4][6]. - The recent pig price fluctuations have shown a significant decline from a peak of over 20 yuan per kilogram to below 13 yuan, impacting the financial health of pig farming companies [3][4]. Strategic Implications - The acquisition is seen as a strategy to bypass current production capacity control policies by rapidly expanding scale [2][3]. - Despite the potential for increased revenue from the acquisition, the ongoing low prices in the pig market raise concerns about future profitability and operational stability for TianKang [7].