Shennong Group(SH:605296) Guoxin Securities·2025-05-06 11:25Group 1: Company Overview - Shennong Group (605296.SH) reported a steady decline in breeding costs, maintaining industry-leading per-head profits, with 2024 revenue expected to increase by 43.51% to 5.584 billion yuan and a net profit of 687 million yuan [10] - The company aims to achieve an average complete cost target of under 13 yuan per kilogram by 2025, leveraging improvements in health, scale effects, and management efficiency [10][12] - The breeding performance is in the top tier of the industry, with a PSY of 29 heads and a survival rate of approximately 86% as of January 2025 [11] Group 2: Industry Insights - The agricultural sector, particularly in livestock, is expected to benefit from a recovery in breeding costs and an increase in demand for high-quality meat products [8] - The overall livestock industry is experiencing a recovery phase, with Shennong Group's breeding output target set at 3.2 to 3.5 million heads for 2025, indicating a stable growth trajectory [12] - The company has established a core breeding project in collaboration with PIC China and Juxing Agriculture, which is expected to ensure a stable supply of high-quality breeding pigs in the future [11]