Financial Performance - In Q1 2025, the company achieved a revenue of 3.002 billion CNY, a significant increase of 108.22% compared to the same period last year [3] - Gross profit reached 491 million CNY, up 138.79% year-on-year [3] - The net profit attributable to shareholders was 171 million CNY, marking a 449.58% increase from the previous year [3] - The asset-liability ratio at the end of Q1 2025 was 44.91%, a decrease of 1.51 percentage points from the beginning of the year [3] - Total assets amounted to 19.410 billion CNY, a growth of 2.16% from the end of the previous year [3] Cost Management - The production cost for fattening operations in March 2025 was 13.3 CNY/kg [4] - The company aims to align its costs with top industry standards through various internal management strategies [4][8] - The company plans to enhance operational efficiency and reduce costs by optimizing breeding performance and improving resource allocation [4][8] Future Projections - The company expects to maintain a target of over 7 million pigs for 2025 [4] - The company is focused on high-quality development and cost reduction as core strategies [8] - The IoT coverage rate is currently at 77%, with plans for further expansion [8] Market Position and Strategy - The "company + farmer" model accounts for 85% of the fattened pig output in 2024 [6] - The company is actively managing its market presence and investor relations to enhance its market value [7] - The company is committed to digital transformation and smart farming initiatives to improve efficiency and reduce production costs [8] Shareholder Information - As of April 18, 2025, the number of shareholders stood at 165,300 [9]

Core Insights - The article highlights the transformation of traditional pig farming into a smart, large-scale operation at the Tun Island Livestock Breeding Base, supported by financial assistance from Postal Savings Bank [1][3]. Group 1: Smart Farming Transformation - The farm has adopted advanced technologies, including a Danish automatic feeding system, air filtration systems, and waste treatment processes, leading to significant operational efficiencies [2]. - The farm occupies 100 acres and features ten smart pig houses, with an expected annual output of 10,000 pigs [2]. - Post-automation, labor costs have decreased by 40%, feed utilization has improved by 15%, and the time to market has been reduced by 10 days, resulting in a 30% increase in overall efficiency [2]. Group 2: Financial Support and Innovation - The farm received a loan of 7 million yuan from Postal Savings Bank, which was crucial for the purchase of expensive smart equipment [3]. - The bank's innovative "project loan" product allows for quick access to funds, with loans disbursed within three working days for viable projects [3]. - The bank aims to enhance financial services for rural revitalization, with a projected growth rate of 35.49% for agricultural loans and 12.45% for inclusive agricultural loans in 2024 [3]. Group 3: Technological Collaboration - The farm collaborates with Jiangsu Academy of Agricultural Sciences to establish a comprehensive technical system for breeding and disease prevention, ensuring high-quality meat production [4]. - The farm aims to create a modern agricultural complex that integrates breeding and processing, with aspirations to establish the "Tun Island" brand as a well-known agricultural product in the province [4].

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company has shown a significant recovery in profitability, with a net profit of 17.88 billion yuan in 2024, a year-on-year increase of 519.42% [6] - The company is expected to maintain its cost advantage in pig farming, with a projected average breeding cost of approximately 14 yuan/kg in 2024, decreasing to around 13 yuan/kg by the end of the year [6] - The company plans to increase its dividend distribution, proposing a cash dividend of 5.72 yuan per 10 shares, which would result in a total cash dividend of 7.588 billion yuan for 2024 [6] Financial Forecasts - The company's revenue is projected to be 133.54 billion yuan in 2025, with a net profit of 14.42 billion yuan [5] - Earnings per share (EPS) are expected to be 2.64 yuan in 2025, with a price-to-earnings (P/E) ratio of 14.50 [5][9] - The company’s total assets are expected to reach 215.61 billion yuan by 2027, with a debt-to-asset ratio of 53.8% [9] Operational Insights - The company aims to enhance its slaughtering business, with a target utilization rate of over 60% by 2025, up from 43% in 2024 [6] - The company is actively expanding its overseas business, particularly in Southeast Asia, through partnerships to provide breeding technology and hardware support [8] - The company plans to invest 9 billion yuan in capital expenditures in 2025, focusing on pig house renovations and breeding platform development [8]

Investment Rating - The report maintains a "Strong Buy" rating for the company [3] Core Views - The company achieved a revenue of 1379.47 billion yuan in 2024, a year-on-year increase of 24.43%, and a net profit of 178.81 billion yuan, marking a turnaround from losses [1] - The company sold 71.602 million pigs in 2024, a 12.2% increase year-on-year, with a target of 72-78 million for 2025 [1] - The complete cost of pig farming decreased from approximately 14 yuan/kg in 2024 to a target of 12 yuan/kg in 2025, contributing to improved profitability [1] - The slaughtering segment achieved monthly profitability in December 2024, with a reduction in average losses per head from 70 yuan in 2023 to 50 yuan in 2024 [2] - The company is expanding its overseas business and enhancing its technological capabilities in smart farming applications [2] Financial Forecasts - The projected net profits for 2025, 2026, and 2027 are 206.29 billion yuan, 220.67 billion yuan, and 353.65 billion yuan respectively, with EPS expected to be 3.88, 4.03, and 6.46 yuan [3] - The company’s PE ratios for the same years are forecasted to be 10, 10, and 6 times [3] - Revenue is expected to grow from 142.48 billion yuan in 2025 to 162.78 billion yuan in 2027, with a growth rate of 13.77% in 2027 [5]