Muyuan Foods (SZ:002714) Yin He Zheng Quan·2025-03-13 02:59Investment Rating - The report recommends investment in the AI+ agriculture sector, particularly in the pet industry and smart pig farming [4][5]. Core Viewpoints - AI+ agriculture is identified as a significant exploration and development direction, with a focus on integrating AI technologies into various agricultural sectors to enhance efficiency and innovation [4][8][9]. - The pet industry is experiencing rapid growth, with AI applications transforming pet healthcare, maintenance, and marketing, indicating a robust market potential [22][23][25]. - Smart pig farming is undergoing a technological revolution, transitioning from traditional methods to data-driven, automated practices, which are expected to improve productivity and reduce costs [58][64][65]. Summary by Sections AI+ Agriculture as an Important Exploration Direction - The report highlights the global trend of integrating AI and big data into agriculture, driven by technological advancements and policy support for consumption upgrades [4][9][10]. - The Chinese government is actively promoting AI in consumption sectors, aiming to enhance the integration of technology and consumer needs [9][10]. AI+ Pet Industry: Exploring New Consumption Models - AI is rapidly penetrating the pet industry, enhancing health management, behavior analysis, and marketing strategies, which are expected to significantly improve industry efficiency [22][23][25]. - The number of pets in China is projected to grow, with a current penetration rate of 22%, indicating substantial room for growth compared to mature markets [22][23]. - The average medical expenditure per pet is on the rise, with a forecasted increase to approximately 677 RMB in 2024, reflecting growing consumer awareness of pet health [23][25]. AI+ Smart Pig Farming: Leading Transformation and Upgrading - The report discusses the shift towards smart pig farming, emphasizing the integration of IoT, cloud computing, and AI technologies to enhance operational efficiency [58][59]. - Recent policies support the digital transformation of pig farming, aiming for a significant increase in the scale and automation of operations by 2030 [59][63]. - The application of smart technologies is expected to improve labor productivity by over 30% and reduce costs by approximately 150 RMB per pig [64][65].