1. Report Industry Investment Ratings - **Oscillation**: Oils and fats, protein meal, corn and starch, natural rubber, synthetic rubber, pulp [4][5] - **Oscillation on the weak side**: Live pigs, cotton, sugar, logs [2][7][9] 2. Core Views of the Report - The MPOB report has limited impact on oils and fats, and attention should be paid to the effectiveness of technical resistance. The protein meal downstream procurement is becoming more cautious, with spot prices weaker than the futures. The bullish sentiment for corn/starch is rising, and the 09 contract has broken through the previous high. The pork reserve purchase has temporarily boosted the market sentiment for live pigs. The strength of commodities has driven up the price of rubber, while synthetic rubber has changed little and followed the rebound. The macro - environment affects the sentiment of pulp commodities, and pulp maintains an oscillating trend. The fundamentals of cotton have changed little, and the macro - level has released positive news to boost the futures. The sugar price is oscillating weakly, and the log futures are experiencing a decline due to strong delivery games [1][4]. 3. Summaries According to Relevant Catalogs 3.1 Market Views 3.1.1 Oils and Fats - **Industry Information**: MPOB data shows that Malaysia's palm oil production, exports in May were higher than expected, and inventory was slightly lower than expected. May production was 1.7716 million tons, with a month - on - month increase of 5.08% and a year - on - year increase of 3.94%; exports were 1.3872 million tons, with a month - on - month increase of 25.85% and a year - on - year increase of 0.64%; inventory was 1.9902 million tons, with a month - on - month decrease of 6.68% and a year - on - year increase of 13.5% [4]. - **Logic**: Due to good weather in US soybean - growing areas and an improvement in the good - to - excellent rate, US soybeans fell on Monday, and China's three major oils oscillated and adjusted yesterday, with palm oil being weaker. The market is focused on Sino - US trade negotiations, the US dollar weakened, and crude oil prices continued to rise. The cost of imported South American soybeans has increased, and there is still great uncertainty in US biodiesel and foreign trade policies. The soybean planting progress in the US has reached 90%, and the good - to - excellent rate is 68%. In the next two weeks, precipitation in US soybean - growing areas will be normal, and the temperature is expected to be high in mid - June. A large number of imported soybeans are arriving in China, and the domestic soybean oil inventory is expected to continue to rise. The MPOB report on palm oil has limited impact, and the short - term production increase pressure may weaken marginally. The domestic rapeseed oil inventory is still high and the supply is sufficient [4]. - **Outlook**: In the medium term, the oils and fats market may operate within a range. Recently, there may be a rebound demand for soybean oil and palm oil, and attention should be paid to the effectiveness of upper technical resistance [4]. 3.1.2 Protein Meal - **Industry Information**: On June 10, 2025, the international soybean trade basis quotes for US Gulf soybeans were 226 cents per bushel, with a week - on - week change of 16 cents per bushel or 7.62% and a year - on - year change of - 20 cents per bushel or - 8.6957%; for US West soybeans, they were 199 cents per bushel, with a week - on - week change of 16 cents per bushel or 8.74% and a year - on - year change of - 54 cents per bushel or - 22.7848%; for South American soybeans, they were 180 cents per bushel, with a week - on - week change of 12 cents per bushel or 7.14% and a year - on - year change of - 6 cents per bushel or - 3.4483%. The average profit of Chinese imported soybean crushing was 34.17 yuan per ton, with a week - on - week change of 20.49 yuan per ton or 149.78% and a year - on - year change of - 74.08 yuan per ton or - 84.412% [4]. - **Logic**: Internationally, the sowing and emergence of US soybeans are going smoothly, and the precipitation and temperature in the next 15 days will be slightly high. Although the drought in June is not a major problem, it is expected to intensify in the quarterly outlook. The US soybean price is expected to oscillate within a range. Domestically, the spot price of soybean meal continues to rise slightly, but the spot and basis trading volume has decreased significantly. The supply pressure restricts the increase of spot prices. The oil mill's profit margin has increased month - on - month. It is expected that the soybean arrivals will increase in the next few months, the oil mill's operating rate will remain high, the soybean meal inventory will increase seasonally, and the basis will be under seasonal pressure. The downstream soybean meal inventory has increased month - on - month, and the downstream has become more cautious after replenishing at low levels. The year - on - year increase in the inventory of breeding sows indicates that the rigid demand for soybean meal consumption may increase steadily [4]. - **Outlook**: Before weather speculation, US soybeans are expected to maintain an oscillating trend within a range. Under the dominance of increasing supply pressure in China, the spot price of soybean meal is expected to be weaker than the futures, and the basis will continue to be weak. The soybean meal futures will follow the US soybeans to operate within a range [4]. 3.1.3 Corn and Starch - **Industry Information**: According to Mysteel, the FOB price at Jinzhou Port is 2,340 yuan per ton, with a week - on - week change of 30 yuan per ton. The average domestic corn price is 2,391 yuan per ton, with a price increase of 12 yuan per ton and an expanding increase [4]. - **Logic**: The wheat minimum purchase price policy has been launched in Henan over the weekend, which has continuously boosted the bullish sentiment in the market. The import of grains has been continuously tightened, and the expectation of inventory reduction is gradually being realized. The fundamental situation shows that the number of trucks arriving at Shandong deep - processing plants this morning is 116, remaining at a low level. The demand for new corn from downstream feed - using enterprises is limited, but there is still rigid demand for corn in some egg - laying hens, young poultry, and pig feed. Futures prices have continuously risen, which has in turn boosted the bullish sentiment in the market. In the medium term, the import of grains has been continuously tightened, further confirming the expectation of inventory reduction [4][5]. - **Outlook**: Corn and starch are expected to operate with a bullish bias [5]. 3.1.4 Live Pigs - **Industry Information**: On June 10, the price of live pigs (external ternary) in Henan was 14.01 yuan per kilogram, with a week - on - week change of 0.79%. The closing price of live pig futures (active contract) was 13,595 yuan per ton, with a week - on - week change of 0.89% [5]. - **Logic**: After the recent rapid decline in pig prices, the pig - grain ratio has decreased. On June 11, 10,000 tons of central reserve frozen pork will be purchased, which has boosted market sentiment. However, the current inventory pressure is still high, and the fundamentals remain loose. In the short term, the slaughter weight of live pigs has decreased, and the proportion of large - pig slaughter has significantly increased. In the medium term, the number of newly - born piglets from January to April 2025 has continued to increase, and it is expected that the slaughter volume of live pigs will increase in the third quarter. In the long term, the current production capacity is still at a high level, and the inventory of breeding sows in May has continued to increase month - on - month in the sample points of Steel Union and Yongyi. The terminal consumption has entered the off - season, and the slaughter demand has decreased. The average slaughter weight has decreased month - on - month [1][5]. - **Outlook**: In the short term, the price is weak, and in the long term, the price is in a downward cycle. The near - term market is under pressure to sell, and the far - term market is affected by the expectation of inventory clearance and production capacity adjustment, showing a pattern of near - term weakness and far - term strength [2][5]. 3.1.5 Natural Rubber - **Industry Information**: The RMB - denominated Thai mixed rubber in Qingdao Free Trade Zone is 13,740 yuan per ton, up 100 yuan; the domestic full - latex old rubber is 13,800 yuan per ton, up 100 yuan. The STR20 spot in the free trade zone is 1,715 US dollars, up 5 US dollars. The price of glue entering the dry - glue factory in Yunnan is 13,000 yuan, unchanged; the price of rubber blocks is 12,600 yuan, unchanged. On June 10, the raw material market quotes in Thailand's Hat Yai showed that the price of white sheet rubber was 63.66 baht, the price of smoked sheet rubber was 67.88 baht; the price of glue was 56.25 baht, up 0.25 baht; the price of cup lump was 46.2 baht, up 1 baht. According to the latest data released by the Passenger Car Association, the retail sales volume of the national passenger car market reached 1.932 million units in May this year, a year - on - year increase of 13.3% and a month - on - month increase of 10.1%. From January to May this year, the cumulative retail sales volume of the passenger car market reached 8.811 million units, a year - on - year increase of 9.1% [5][6]. - **Logic**: Driven by the strength of commodities, the rubber price has increased, but the increase is limited. The fundamentals have changed little. On the supply side, Thailand is still affected by the rainy season, and the raw material price has started to decline under the drag of the futures. On the demand side, the overall recovery of tire production is weak, and the finished - product inventory backlog has been slightly alleviated, but there is still no obvious improvement. With the improvement of the macro - sentiment, the futures may temporarily stabilize and have a slight rebound [6]. - **Outlook**: Currently, the fundamentals of rubber are still weak, and the impact of the commodity atmosphere and capital sentiment is relatively large, and the downward trend may continue [6]. 3.1.6 Synthetic Rubber - **Industry Information**: The spot prices of butadiene rubber standard delivery products from two major oil companies are as follows: the market price in Shandong is 11,600 yuan per ton, unchanged; the market price in Zhejiang Chuanhua is 11,450 yuan per ton, unchanged; the market price in Yantai Haopu is 11,400 yuan per ton, unchanged. The domestic spot price of butadiene in the central Shandong region is 9,450 yuan per ton, down 50 yuan; the ex - tank self - pick - up price in Jiangyin is 9,100 yuan per ton, down 175 yuan [5]. - **Logic**: The futures followed the broader market to rise slightly yesterday, but the fundamentals have changed little recently. The current futures price has returned to the previous low and the absolute low since listing. The BR fundamentals are relatively neutral, and most private production enterprises have started to reduce production, which may help alleviate the subsequent social inventory pressure. The butadiene market is operating weakly, but the tight supply of spot resources has gradually supported the market sentiment. As the price declines, the phased buying in the market has gradually followed up, and the premium transaction of auctioned goods has boosted the replenishment enthusiasm of middlemen, providing short - term support [7]. - **Outlook**: Attention should be paid to the support of the futures after the butadiene price stabilizes. The BR futures are expected to temporarily stabilize, but there is still pressure on the upside [7]. 3.1.7 Cotton - **Industry Information**: As of June 10, the number of registered warrants in the 2024/2025 season is 10,815. As of June 9, the Zhengzhou cotton 09 contract closed at 13,520 yuan per ton, up 25 yuan per ton week - on - week [7]. - **Logic**: Zhengzhou cotton has risen for three consecutive trading days. The fundamentals have changed little, and the market sentiment has been boosted by positive macro - news last week. In the new cotton planting season, the cotton planting area in Xinjiang is expected to increase year - on - year. If there is no extreme weather, the cotton output in Xinjiang in the 2025/2026 season may remain high or even reach a new high, with the market generally expecting it to be around 7 million tons. On the demand side, the downstream production has been stable since the beginning of the year until before the Dragon Boat Festival, and cotton consumption has been rapid. However, since June, the downstream demand has gradually entered the off - season, the enterprise operating rate has decreased, and the finished - product inventory has gradually accumulated. On the inventory side, the cotton inventory reduction speed has accelerated, and the commercial inventory is lower than that of last year and the five - year average, which may support the price [7]. - **Outlook**: In the short term, cotton is expected to oscillate, and in the long term, it is expected to oscillate on the weak side [7][8]. 3.1.8 Sugar - **Industry Information**: As of June 10, the Zhengzhou sugar 09 contract closed at 5,717 yuan per ton, down 17 yuan per ton week - on - week [9]. - **Logic**: The market has advanced the trading of the expectation of a loose global sugar supply in the 2025/2026 season. In the new season, Brazil, India, Thailand, and China are all expected to increase production. The new sugar - making season in Brazil's central - southern region has started, and although the production data as of the first half of May has declined year - on - year, the market's optimistic expectation for the total output remains unchanged. China's 2024/2025 sugar - making season has ended, with a high sales - to - production ratio, a year - on - year decrease in industrial inventory, and a low import volume, but there will be subsequent arrival pressure [9]. - **Outlook**: In the long term, due to the expected loose supply in the new season, the sugar price has a downward driving force. In the short term, the decline of the external market has led to a downward shift in valuation, and the sugar price is oscillating weakly [9]. 3.1.9 Pulp - **Industry Information**: According to Longzhong Information, on the previous trading day, the price of Russian softwood pulp in Shandong is 5,350 yuan per ton, unchanged; the price of Maples is 5,750 yuan per ton, unchanged; the price of Silver Star is 6,150 yuan per ton, unchanged. The price of Golden Fish is 4,120 yuan, unchanged [10]. - **Logic**: Currently, the pulp supply - demand situation is as follows: the warehouse receipts are continuously decreasing, and there are rumors of maintenance and production conversion for Russian softwood pulp, so the price difference between Russian softwood pulp and other softwood pulps may return to the normal historical level. The continuous production pressure of hardwood pulp is emerging, the US dollar price is continuously decreasing, and the domestic downward space has been opened. The overseas shipment is abundant, and the domestic arrival volume of hardwood pulp is generally high. The demand side is generally weak. In the short term, there are news of strikes and pulp mills' price - holding in the supply side. The previous month's futures rebound was mainly due to the valuation correction of Russian softwood pulp, which is now approaching the end. Excluding this factor, the overall pulp supply - demand is weak, and the abundant supply of hardwood pulp suppresses the hardwood pulp price, and the weak demand. The decline in the hardwood pulp price negatively affects the softwood pulp price through the price difference between soft and hard pulp. In the future, due to the weak supply - demand, the basis of other softwood pulps may continue to decline. The pulp futures are priced based on Russian softwood pulp, and the continuous decrease of warehouse receipts and the production conversion of Russian softwood pulp will continue to drive the futures to resist decline [10]. - **Outlook**: Due to the conflict between the weak supply - demand situation, which is negative for the single - side market, and the valuation correction of Russian softwood pulp, which is positive for the futures, the pulp futures are expected to oscillate [10]. 3.1.10 Logs - **Industry Information**: The spot price of 4 - meter medium - grade A radiata pine logs in Jiangsu is 770 yuan per cubic meter, and the price of 3.9 - meter medium - grade A radiata pine logs in Shandong is 750 yuan per cubic meter. The LG2507 log futures contract closed at 772 yuan per cubic meter, with a basis of - 2 yuan in Jiangsu and - 22 yuan in Rizhao [11]. - **Logic**: Since June, the fundamentals of logs have weakened, and the short - term supply is still accumulating, with the spot price still under pressure. In the futures market, the main log

Group 1 - Wahaha responded to recent media concerns regarding factory shutdowns and employee complaints, stating that adjustments in product structure were necessary due to rapid market demand growth, leading to capacity constraints [1] - The company has initiated measures such as outsourcing production, upgrading equipment, and investing in new factories to alleviate capacity issues and enhance market responsiveness [1] - Wahaha's internal compliance reforms, while causing short-term challenges, are expected to contribute to building a modern industrial system and improving competitiveness in the long run [1] Group 2 - Meizu issued a statement clarifying that it has never planned to eliminate its mobile phone business, countering false claims circulating on social media that could harm its brand reputation [2] - The company's prompt clarification reflects its confidence in maintaining brand integrity and business development amidst the rapid spread of misinformation [2] - This action not only curbs the spread of rumors but also sends a positive signal to the market, helping to stabilize consumer and partner confidence [2] Group 3 - Over 100 luxury brands, including BV, Cartier, and Valentino, are set to launch new products during the upcoming Tmall "618" shopping festival, coinciding with the "520" Chinese Valentine's Day [3] - The exclusive online debut of over a thousand products on Tmall highlights the increasing importance of e-commerce channels in luxury goods sales and the brands' focus on the Chinese market [3] - This trend indicates a deepening integration between luxury brands and Chinese e-commerce platforms, enhancing brand exposure and market influence [3] Group 4 - Shanghai Lego Land has implemented a real-name ticketing system in response to illegal resale attempts of trial operation tickets, emphasizing that these tickets are not for public sale [4] - The proactive management of ticket sales aims to curb scalping practices and protect the rights of legitimate consumers, setting a standard for ticket management in the industry [4] - By restricting trial operation tickets to specific users, the park safeguards the exclusive rights of annual pass holders and hotel package guests, while also protecting its brand image from market price distortions [4]

Core Viewpoint - Wahaha's Shaanxi company has faced production halts in its dairy workshop, affecting over 50 frontline employees, with no reasonable solutions provided by the company [1] Group 1 - Wahaha reported that due to rapid growth in the aquatic product market last year, the company had to adjust its product structure, leading to capacity constraints [1] - The company initiated measures to address these issues, including outsourcing production to contract manufacturers and investing in new factory construction [1] - Wahaha has completed the layout of 18 high-speed production lines and has built several modern factories, aiming to stabilize supply and achieve full self-production with the new production lines [1]

Financial Data and Key Metrics Changes - First quarter consolidated revenues were $36,800,000, a 2% decrease year over year, but a sequential increase of almost 10% due to stronger demand for wind repowering [10] - Adjusted EBITDA margin was 6.4%, primarily affected by low capacity utilization and a lower margin mix of products sold across all segments [10] - First quarter orders totaled $30,500,000, an increase of 5% compared to the prior year [11] Business Line Data and Key Metrics Changes - Heavy Fabrication segment revenue was $25,200,000, up 15% year over year, driven by increased demand for wind tower adapters [12] - Gearing revenue was $6,000,000, down 28% year over year due to softness in the oil and gas gearing market, partially offset by strength in wind and industrial sectors [8][13] - Industrial Solutions revenue was $5,600,000, down 29% year over year, primarily due to timing of aftermarket shipments in the natural gas turbine market [9][14] Market Data and Key Metrics Changes - Orders in the Heavy Fabrication business increased 10% year over year, reflecting strong demand for wind repowering adapters [5] - Industrial Solutions segment recorded over $10,000,000 in orders, surpassing the previous record, with a backlog of nearly $23,000,000 [14] - Gearing orders were down approximately $2,500,000 year over year but showed sequential improvement [12] Company Strategy and Development Direction - The company is focusing on expanding its product mix within higher margin adjacent markets and investing in equipment technology to improve process capabilities [6][7] - There is a strategic shift towards stable recurring project revenue streams across diverse end markets, particularly in power generation and grid hardening [19] - The company is also evaluating export opportunities and expanding its service and commercial teams for its Clean Fuels PRS line [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the domestic onshore wind tower activity continuing at its current rate through 2026, with sustained demand for repowering adapters [18] - The company anticipates full year revenue to be in the range of $140,000,000 to $160,000,000 and adjusted EBITDA to be between $13,000,000 and $15,000,000 [16] - Management acknowledged supply chain challenges but expects improvements in revenue totals over the balance of 2025 [15] Other Important Information - The company ended the first quarter with approximately $23,000,000 in cash and availability on its credit facility [16] - A tax credit of approximately $2,500,000 was recognized in Q1 [58] Q&A Session Summary Question: Discussion on Heavy Fabrications segment and revenue trends - Management noted strong demand for repowering adapters and expects revenue to increase in the Heavy Fabrication segment through 2025, particularly in Manitowoc [25][27] Question: Impact of tariffs on cost structure - Management indicated that tariffs have a minor impact due to supply chain adjustments made by OEM partners, with some materials sourced from less impacted countries [29][30] Question: Outlook for gearing demand amid low oil prices - Management acknowledged a lull in oil and gas gearing but noted stronger orders in the power generation sector, indicating potential growth opportunities [32][33] Question: Assessment of Industrial Solutions segment performance - Management confirmed that the drop in revenue was primarily due to supply chain delays, which have been largely resolved [40][41] Question: Revenue expectations for the PRS product line - Management anticipates that the PRS line could contribute between $15,000,000 and $20,000,000 to revenue in 2026, with expectations for similar gross margins [46][49]

Financial Data and Key Metrics Changes - Revenues decreased by 7% year-over-year, with adjusted EPS at negative $0.12, down $0.25 from the previous year [6][23] - Adjusted operating margin was negative 0.3%, and adjusted TTS operating margin was 0.4% net of fuel surcharges [6][23] - Operating cash flow was $29 million for the quarter, representing 4% of total revenue, with free cash flow at $37 million or 5% of total revenues [32] Business Line Data and Key Metrics Changes - Truckload Transportation Services (TTS) total revenue was $502 million, down 9%, with revenues net of fuel surcharges declining 7% to $444 million [24] - Dedicated revenue net of fuel was $279 million, down 7%, representing 64% of TTS trucking revenues [25] - One Way Truckload revenue net of fuel was $154 million, a decrease of 9%, with revenue per truck per week decreasing 3.2% [27] Market Data and Key Metrics Changes - Approximately 10% of total revenues are from cross-border Mexico shipments, with a strong presence in manufacturing, industrial, and food and beverage products [19][20] - The retail vertical accounted for 62% of revenues in 2024, with stable volumes observed across discount retail customers [21] Company Strategy and Development Direction - The company is focused on three priorities: driving growth in core business, operational excellence, and capital efficiency [13][16] - The dedicated business is expected to benefit from supply chain uncertainty in 2025, with a strong pipeline of new contracts [9] - The company plans to increase its cost savings target for 2025 from $25 million to $40 million, aiming for a more cost-efficient operating model [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that first-quarter results did not meet expectations due to elevated insurance costs, extreme weather, and IT spending [5][6] - The company remains optimistic about long-term growth despite current challenges, citing structural improvements and strategic investments [40] - Management highlighted the importance of legislative reform to address nuclear verdicts and insurance claims, which continue to pressure results [58][61] Other Important Information - The company closed a new $300 million credit facility, increasing liquidity to $777 million, up nearly 70% from year-end [32][34] - The average age of the truck and trailer fleet at the end of the first quarter was 2.2 and 5.4 years, respectively [38] Q&A Session Summary Question: Discussion on dedicated margins versus OTR - Management indicated that dedicated margins typically outperform one-way margins, with recent wins expected to improve overall network health [44][46] Question: Insurance concerns and potential resolutions - Management emphasized the need for tort reform and legislative changes to mitigate the impact of nuclear verdicts on insurance costs [57][58] Question: Market capacity and demand issues - Management noted that while demand indicators were strong, tariff uncertainty and network disruptions have created challenges, but they expect capacity attrition to accelerate [66][68] Question: Volume exposure to overseas imports - Approximately 10% of one-way volume is exposed to the West Coast, with management expressing optimism about the resilience of retail customers despite uncertainties [74][80] Question: Performance of recent acquisitions - Management acknowledged that while acquisitions have not yet leveraged expected operating efficiencies, they remain optimistic about customer acceptance and growth [82][84]

Core Viewpoint - ST Tianbang has made significant operational improvements in its pig farming business, focusing on cost reduction and efficiency enhancement, while also addressing debt restructuring and production capacity optimization [1][5]. Group 1: Cost and Production Metrics - In Q1 2025, the cost of weaned piglets was 308 CNY per head, and the total cost for fattening pigs was 13.62 CNY per kg, a decrease of 0.31 CNY per kg compared to Q4 2024 [2] - Key breeding indicators have improved, with the survival rate of fattening pigs increasing from 88.7% in 2023 to 92.72% in Q1 2025, and the average weight of slaughtered pigs rising from 110 kg in 2023 to 121 kg in Q1 2025 [2] Group 2: Operational Efficiency Improvements - The company reduced its workforce from over 7,000 employees at the beginning of 2024 to 5,000 by the end of Q1 2025, a reduction of approximately 30% [3] - The number of self-built and leased fattening farms in Shandong has decreased to 10, with the breeding sow inventory down to 55,800 heads [3] - The fattening partner model has matured, with partner farms accounting for about 15% of fattened pig output in Q1 2025, while family farms contributed approximately 70% [3] Group 3: Capacity and Debt Management - The utilization rates for breeding and fattening farms were 46% and 43%, respectively, in Q1 2025, with depreciation costs due to empty pens amounting to 0.49 CNY per kg [4] - The company aims to increase the breeding sow inventory by 50,000 heads within the year without additional capital investment, targeting a total of 400,000 heads by year-end [4] - As of Q1 2025, total liabilities were 9.868 billion CNY, down by 5.045 billion CNY from the end of 2023, with a debt ratio of 71.79%, a decrease of 14.94 percentage points [5][6] Group 4: Financial Performance - In Q1 2025, the company's main revenue was 2.443 billion CNY, a year-on-year increase of 19.17%, while net profit attributable to shareholders was 127 million CNY, a decrease of 78.97% [9] - The company aims to reduce the total cost of fattening pigs to below 12.8 CNY per kg by the end of 2025 [6]