Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company is expected to achieve a net profit attributable to shareholders of 1.2 to 1.3 billion yuan in Q1 2025, representing a year-on-year growth of 39.42% to 51.04% [1] - The feed business has shown strong sales growth, with external feed sales reaching approximately 5.95 million tons in Q1 2025, a year-on-year increase of about 25% [1] - The company is actively expanding its overseas market presence by establishing local factories in countries such as Vietnam, Indonesia, Ecuador, and Egypt [1] - The pig farming business is expected to generate good profits in 2025 due to a decrease in breeding costs and the implementation of a risk-hedging operational model [1] - The company has a clear target for external sales growth, aiming for an increase of 3 million tons in the short term for 2025 and 51.5 million tons by 2030 [1] Financial Performance Summary - The company reported a revenue of 104.715 billion yuan in 2022, with projected revenues of 116.117 billion yuan in 2023 and 127.923 billion yuan in 2024, reflecting a growth rate of 21.6%, 10.9%, and 10.2% respectively [4] - The net profit attributable to shareholders was 2.957 billion yuan in 2022, with projections of 4.516 billion yuan in 2024 and 5.229 billion yuan in 2025, indicating a year-on-year growth of 64.8% and 15.8% respectively [4] - The earnings per share (EPS) is expected to increase from 1.78 yuan in 2022 to 3.14 yuan in 2025 [4] - The company maintains a healthy return on equity (ROE) of 20.3% in 2024, slightly decreasing to 20.2% in 2025 [4] Industry Insights - The feed industry is less affected by tariff policies due to a stable supply chain, with domestic corn production and diversified import channels for soybeans and soybean meal [2] - The company has developed various low-protein formula technologies and raw material substitution techniques, reducing reliance on imported soybeans [2]

Group 1 - The core viewpoint indicates that while pig prices are seasonally declining, they are performing better than market expectations due to reduced supply pressure and price differentials in the industry [1][3] - In February, the national breeding sow capacity increased slightly by 0.1% month-on-month, suggesting a weak de-capacity trend in the medium term [1][3] - The industry is still in a capacity release phase, with a notable increase in the number of pigs slaughtered, reaching 7.32 million heads in February, a year-on-year increase of 36% [2] Group 2 - The average slaughter weight of pigs has slightly increased, with major listed companies reporting weights of 121 kg and 132 kg, reflecting a marginal rise [2] - The overall profitability in pig farming is narrowing due to rising feed prices, particularly for soybean meal and corn, which have led to a rebound in feed costs [1][3] - The investment outlook suggests that high-quality pig companies may achieve considerable profits and continue to repair their balance sheets, despite the overall pressure on pig prices in the first half of the year [3]