隆平高科（000998）：国内玉米业务承压，巴西隆平减亏明显

Investment Rating - The report maintains a "Strong Buy" rating for the company [1][3]. Core Views - The company's revenue for the first half of 2025 (25H1) was 2.166 billion yuan, a year-on-year decline of 16.11%, with a net profit attributable to shareholders of -164 million yuan, down 247.26% year-on-year. However, the non-recurring net profit improved by 39.13% year-on-year to -157 million yuan [1]. - The rice seed segment showed resilience with a revenue of 779 million yuan in 25H1, a decline of 6.98%, but with a gross margin of 42.20%, up 2.65 percentage points from the previous year. The company is focusing on high-quality products and expanding new varieties to maintain its industry leadership [2]. - The corn seed segment faced challenges, with a revenue of 907 million yuan in 25H1, down 26.14%. However, the overseas business in Brazil showed a revenue increase of 2.11% to 868 million yuan, with a significant reduction in net loss by 59.13% due to operational improvements and cost reductions [2]. - The company completed a 1.2 billion yuan capital increase in the first half of 2025, reducing its debt ratio by 6.46% compared to the beginning of the year. Financial expenses decreased by 7.33% year-on-year, contributing to improved cash flow from operations, which increased by 52.66% year-on-year [2][3]. - The company is recognized for its leading position in research and breeding, with significant breakthroughs in biotechnology for corn seeds, including the development of new varieties in Brazil [3]. Summary by Sections Financial Performance - In 25H1, the company reported a revenue of 2.166 billion yuan, a decrease of 16.11% year-on-year, and a net profit of -164 million yuan, a decline of 247.26% year-on-year. The non-recurring net profit improved by 39.13% to -157 million yuan [1]. - The rice seed segment generated 779 million yuan in revenue, down 6.98%, but with a gross margin of 42.20%, an increase of 2.65 percentage points [2]. - The corn seed segment's revenue was 907 million yuan, down 26.14%, while the overseas business in Brazil saw a revenue increase of 2.11% to 868 million yuan [2]. Capital Management - The company completed a 1.2 billion yuan capital increase, reducing its debt ratio by 6.46% from the beginning of the year. Financial expenses decreased by 7.33% year-on-year, and cash flow from operations improved by 52.66% year-on-year [2][3]. Research and Development - The company has a strong research and breeding capability, with advancements in biotechnology for corn seeds and the introduction of new rice varieties [3].