Tianfeng Securities·2025-06-11 10:03Investment Rating - Industry rating is maintained at "Outperform the Market" [8] Core Viewpoints - The report emphasizes the importance of "self-controllable seed sources" in the context of ongoing US-China trade negotiations, particularly focusing on agricultural imports such as soybeans, corn, and wheat [4][3] - The gap in corn yield between China and the US is widening, which may accelerate the domestic biotechnology breeding industry [5] - The transition of genetically modified organisms (GMOs) into large-scale demonstration phases is highlighted, with significant policy support for the industrialization of biological breeding [6] Summary by Sections Trade and Agricultural Imports - In 2024, China is projected to import 22.13 million tons of soybeans, 2.07 million tons of corn, and 1.90 million tons of wheat from the US, accounting for 44.1%, 3.6%, and 9.0% of US exports respectively [4] - The report suggests that grain trade will be a critical area in the short term for negotiations with the US [4] Yield Disparity and Biotechnology - The US corn yield has reached 766 kg/mu by 2024, with a GMO penetration rate exceeding 90%, while China's corn yield is only 439 kg/mu, resulting in a yield gap of 327 kg/mu [5] - The report identifies the promotion of biotechnology breeding as a key factor contributing to this yield disparity [5] Policy and Market Developments - The central government's focus on biological breeding has been consistent for five years, shifting from research to application, with plans to accelerate the industrialization of biological breeding from 2024 to 2035 [6] - By 2024, GMO grain industrialization will transition from a trial phase to large-scale demonstration in eight provinces, with further expansion planned by 2025 [6] Investment Recommendations - The report recommends investing in leading companies in the biotechnology sector, including Longping High-Tech, Dabeinong, and Quanyin High-Tech, while also suggesting to pay attention to Fengle Seed Industry and Denghai Seed Industry [6]