LIHUA(SZ:300761) Ge Long Hui A P P·2026-01-22 06:42Core Viewpoint - Lihua Co., Ltd. is expected to achieve a net profit attributable to shareholders of 550-600 million yuan in 2025, representing a year-on-year decline of 60.55%-63.84% [1] Financial Performance - Q4 2025 is projected to generate a profit of 263-313 million yuan, with a year-on-year decrease of 27%-13.1% [1] - The market was sluggish in the first half of the year, but sales prices began to recover in the second half, leading to profitability in the yellow chicken sector starting from August [1] Operational Strategy - The company is enhancing refined management across all segments to maintain cost advantages [1] - There is an accelerated expansion into the chilled market, with an expected processing capacity of approximately 90 million fresh meat chickens in 2025, accounting for about 15.87% of the total annual chicken sales [1] Sector Performance - Due to price factors, the profitability of the pig sector is expected to decline year-on-year in 2025, although operational profits in the pig farming segment are anticipated to increase [1] - The yellow chicken and pig sectors are expected to achieve complementary profitability in the first and second halves of the year, partially offsetting the impact of the industry cycle downturn [1] Future Outlook - A rebound in pig and chicken prices in 2026 is expected to release profit elasticity [1] - The company is a leading player in the yellow feathered chicken breeding industry, targeting an annual growth rate of 8-10% for yellow feathered chicken output, while maintaining sufficient pig farming capacity and continuous cost optimization [1] - The investment rating is maintained at "Buy" [1]