NWF(SH:600975) Mei Ri Jing Ji Xin Wen·2026-01-19 14:41Core Viewpoint - New Five Feng (SH600975) is expected to report a significant loss for the fiscal year 2025, with a projected net profit loss ranging from 7 billion to 9.6 billion yuan, primarily due to a sharp decline in pig prices and increased inventory impairment provisions [1][2] Group 1: Financial Performance - In 2024, New Five Feng reported a net profit of approximately 393.2 million yuan, indicating a substantial decline in profitability for 2025 [2] - The company anticipates a net profit loss of 7 billion to 9.6 billion yuan for 2025, with a further adjusted loss of 7.2 billion to 9.8 billion yuan when excluding non-recurring items [1][2] - The sales volume of pigs is projected to increase to approximately 5.42 million heads in 2025, a year-on-year increase of over 25% compared to 4.17 million heads in 2024 [1][2] Group 2: Operational Insights - New Five Feng's main business includes pig farming, meat sales, and feed processing, with pig sales accounting for a significant portion of revenue [2] - The company has experienced rapid growth in pig production capacity, with the number of pigs sold increasing from 183,000 in 2022 to 424,870 in 2024, reflecting year-on-year growth rates of 122.32%, 75%, and 32.74% respectively [2] - Cost control is a critical focus for the company, with initiatives to involve all departments in cost management and a restructuring of the organizational framework to enhance efficiency [4] Group 3: Industry Context - The pig farming industry is facing challenges related to cost control, including raw material prices, animal diseases, and environmental regulations [3] - It is anticipated that the pig output will shrink in the second half of 2026, potentially leading to a gradual increase in pig prices during that period [3]