Core Viewpoint - The third A+ Aquatic Feed Summit focuses on addressing the industry's reliance on high-protein feeds, which leads to increased costs and environmental pressures, promoting a shift towards precision, efficiency, and eco-friendly practices in aquaculture [1][2] Group 1: Industry Challenges - The aquaculture feed industry is facing significant issues related to high-protein competition, leading to increased raw material consumption and negative impacts on water quality and fish metabolism [1] - The low protein retention rate and conversion efficiency in the industry indicate substantial room for improvement [1] Group 2: Company Solutions - The company proposes a "Three Highs and Three Lows" technical strategy, focusing on high quality, health, and growth while reducing protein, loss, and feed ratio [1] - The "Four Guarantees" product quality system aims to enhance growth speed by 10%, reduce feed ratio by 10%, and cut losses by 50%, achieving "reduced protein without compromising nutrition" [1] Group 3: Implementation and Results - A comprehensive support system has been established, including professional procurement teams, expert-led production processes, and a feedback mechanism involving all staff to gather practical data from aquaculture sites [2] - The strategy has been successfully applied to various species, resulting in lower protein levels than industry standards, improved stability in high-temperature and high-density farming scenarios, reduced disease incidence, and better water quality [2] Group 4: Future Directions - The company aims to leverage the summit to share technical experiences and product systems, collaborating with industry partners to enhance raw material optimization, formula iteration, and service upgrades [2] - The goal is to help the aquaculture industry overcome resource constraints and progress towards a high-quality development phase characterized by precision, efficiency, and environmental sustainability [2]

Investment Rating - The report assigns an "Accumulate" rating for the company, marking the first coverage of the stock [6]. Core Viewpoints - The company has over 30 years of experience in the specialized aquatic feed sector, focusing on the research and sales of feed for marine species such as shrimp, golden pompano, and sea bass. In 2024, the feed sales volume is expected to reach 787,100 tons, with specialized aquatic feed accounting for 70% of this volume. The company is a core player in the domestic specialized aquatic feed market, with over 71% of its revenue coming from the South China region [4][11]. - The recovery of the downstream aquaculture market is anticipated to drive a rebound in feed demand, as prices for major aquatic products like grass carp, crucian carp, and California sea bass remain at high levels, leading to increased stocking and feeding activities [12][15]. - The company is enhancing its credit management and fund recovery measures to address the impact of bad debts, which have increased significantly due to market conditions. The efficiency of fund recovery is gradually improving [13][38]. Summary by Sections Company Overview - The company has established itself as a leader in the specialized aquatic feed industry, leveraging over 30 years of technical expertise and market presence. It has developed a competitive edge through its "Three Highs and Three Lows" strategy, which focuses on high quality, health, and growth while minimizing protein content, waste, and feed conversion ratios [11][22]. Market Conditions - The aquaculture market is showing signs of recovery, with expectations for increased feed production in 2025. The prices of key aquatic products are projected to remain high, which will likely boost stocking and feeding activities, thereby increasing feed demand [12][52]. Financial Performance - The company's revenue has experienced fluctuations, with a projected recovery in 2025. The report forecasts revenues of 67.78 billion, 74.07 billion, and 77.11 billion yuan for 2025, 2026, and 2027, respectively, with net profits expected to reach 1.31 billion, 1.83 billion, and 2.26 billion yuan during the same period [14][78]. Strategic Initiatives - The company is actively expanding its market presence both domestically and internationally, particularly in Vietnam, where it has established a production base to meet the growing demand for aquatic feed. This strategic move is expected to enhance its growth potential in the region [74][77].