扩量提质，迎接景气

Investment Rating - The report initiates coverage with a "Buy" rating for the company [3]. Core Views - The company is a leading diversified livestock farming enterprise, focusing on chicken and pig farming, with a strong cooperative farming model that has evolved to enhance quality and efficiency [1][10]. - The pig farming segment has shown significant recovery, with a compound annual growth rate of 40% in output from 2020 to 2023, and a target output of 30-33 million pigs for 2024, reflecting a year-on-year growth of 14.2%-25.7% [1][32]. - The poultry segment remains robust, with chicken output reaching 1.183 billion in 2023, a year-on-year increase of 9.51%, and a focus on expanding product offerings and profit margins [2][39]. Summary by Sections Company Overview - The company operates primarily in livestock farming, including chicken and pig production, and also engages in related businesses such as slaughtering, food processing, and veterinary medicine [10][12]. Cooperative Farming Model - The cooperative farming model has been a key driver of growth, with 44,800 cooperative farmers as of mid-2023, a 2.5% increase from the end of 2022 [20]. - The company is transitioning to more modern cooperative models, including "company + modern farming community + farmers" and "company + modern industrial park + professional farmers" [23][28]. Pig Farming - The company has optimized management practices, achieving a stable growth in output, with 26.2622 million pigs sold in 2023, a 46.6% increase year-on-year [1][32]. - The average cost of pig farming has decreased to 16.6-16.8 yuan/kg in 2023, with a target of 15-15.6 yuan/kg for 2024 [34]. Poultry Farming - The company is the largest yellow feather chicken producer in China, with a focus on maintaining profitability and expanding product lines [39]. - The total cost of chicken production has decreased to 6.8 yuan per jin in 2023, with ongoing efforts to enhance product variety and market reach [40][41]. Financial Projections - The company expects to achieve net profits of -6.33 billion, 7.47 billion, and 12.74 billion yuan for 2023, 2024, and 2025 respectively, with significant growth anticipated in the coming years [2][3].