Investment Rating - The investment rating for the company is "Outperform the Market" [5][24]. Core Insights - The company reported a significant increase in net profit before fair value adjustments of biological assets, with a year-on-year growth of 250.6% to 1.273 billion yuan in H1 2025. Revenue also increased by 24.3% to 11.695 billion yuan [1][8]. - The gross margin improved by 5.0 percentage points to 17.4%, primarily driven by the pig farming segment, benefiting from the expansion of new-style family farms, improved management efficiency, and a decrease in feed prices [1][15]. - The company has adopted an innovative "Company + Sow Breeding and Fattening Farm" model, which empowers farmers and stabilizes operations, leading to a 15.5% year-on-year increase in average breeding fees per farm to 0.8 million yuan [2][8]. Financial Performance - In H1 2025, the pig farming segment generated revenue of 9.879 billion yuan, a 32.6% increase year-on-year, with sales volume reaching 5.1174 million pigs, up 27.1% [1][8]. - The average selling price of commercial pigs was 2,032.7 yuan per head, reflecting a 3.5% increase year-on-year [1][8]. - The poultry business saw a revenue decline of 13.5% to 1.336 billion yuan, with sales volume of 42.7033 million birds, up 7.2%, but the average price fell by 20.9% to 12.88 yuan/kg due to weak demand in the catering industry [1][8]. Future Projections - The company maintains its profit forecast, expecting net profit before fair value adjustments of biological assets to be 3.451 billion yuan in 2025, 3.009 billion yuan in 2026, and 2.865 billion yuan in 2027. Earnings per share (EPS) are projected to be 8.87 yuan, 7.74 yuan, and 7.37 yuan for the same years [3][24]. - The financial metrics indicate a steady growth trajectory, with revenue expected to reach 25.786 billion yuan in 2025, reflecting a 14.8% increase from the previous year [4][25].
德康农牧（02419）：2025年中期业绩公告点评：生猪成本保持领先，养殖出栏稳步提升