Investment Rating - The report assigns a "Buy" rating for the company, Dekang Agriculture [1][14][16] Core Insights - The report emphasizes that the agricultural industry is at a pivotal moment, necessitating a reevaluation of strategies to address emerging challenges and opportunities [4][5] - Dekang is transitioning from a traditional agricultural production company to a modern service-oriented platform, focusing on a "platform + ecosystem" strategy to enhance efficiency and sustainability [10][11][12] - The company aims to create a value-sharing ecosystem that benefits all stakeholders, including farmers and enterprises, by leveraging technology and innovation [11][12][18] Summary by Relevant Sections Industry Overview - The pig farming industry in China is characterized by inefficiency and significant variance in operational performance among companies, with a need for modernization and technological advancement [6][29] - The report highlights a shift in national agricultural policy towards ensuring farmers' rights and fostering enterprise innovation, indicating a supportive environment for companies like Dekang [5][27][28] Company Strategy - Dekang's "platform + ecosystem" strategy is designed to facilitate collaboration across the supply chain, enhancing overall efficiency and profitability [11][12] - The company has invested significantly in technology and innovation, aiming to improve breeding efficiency and product quality, which aligns with national agricultural goals [12][13][18] Financial Projections - The report forecasts that Dekang will serve 3,900 to 5,000 modern farms by 2027, with significant revenue growth projected from service fees [14][16] - Expected net profits before fair value adjustments for biological assets are projected to reach 36 billion, 54 billion, and 76 billion RMB from 2025 to 2027, respectively [14][16] Competitive Position - Dekang is positioned to outperform competitors in terms of profitability, with a projected return on equity (ROE) of 48% in 2024, significantly higher than peers [13][14] - The company’s operational efficiency is underscored by its low fixed asset investment per head, which is expected to enhance its competitive edge in the industry [12][36]
德康农牧（02419）：又见穿云箭