TRS(SZ:002567) CAITONG SECURITIES·2024-09-28 00:23Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company has been focusing on the entire pig industry chain for over 30 years, with a strong emphasis on "biological feed, healthy breeding, and branded meat products" [2][7] - The company achieved a pig output of 3.71 million heads in 2023, with a market share of 0.51%, and aims for a long-term target of 10 million heads [2][7] - The pig price has entered an upward cycle, with prices reaching 19.60 CNY/kg on September 19, 2023, a 33.97% increase since the beginning of the year [2][3] - The company is expected to benefit from the rising pig prices and improved production efficiency, leading to a significant increase in breeding profits [3][20] Company Overview - The company operates in three main sectors: feed, breeding, and meat products, with feed being the primary revenue source [10][12] - The company has been expanding its breeding capacity through a combination of self-breeding and a "company + farmer" model, enhancing production management efficiency [2][3][24] - The company has invested in smart farming technologies to reduce costs and improve production efficiency [22][23] Industry Insights - The pig breeding industry is experiencing a trend towards larger-scale operations, which is expected to continue [14] - The feed industry is also growing steadily, with an increasing concentration of production among leading companies [20] - The overall demand for pork remains stable, with 59.74 million tons consumed in 2023, recovering to pre-African swine fever levels [19][21]