Summary of Haida Group Conference Call Company Overview - Haida Group maintains a leading position in the agricultural sector through continuous R&D investment, particularly in the construction of a database for aquatic animal nutrition needs, with R&D expenditure averaging 26% of profits [2][3] Industry Performance - Haida Group has held the top domestic sales position in aquatic premix feed for 21 consecutive years, with compound growth rates for aquatic compound feed and poultry feed at 19% and 20% respectively, while pig feed has a remarkable compound growth rate of 31%, ranking among the industry leaders [2][8] Cost Management - The company effectively controls costs through futures tools for key feed raw materials like corn and soybean meal, resulting in feed costs that are 3.9% lower than the industry average, establishing a foundation for high-cost performance products [2][15] Comprehensive Services - Haida Group enhances user stickiness by providing a full range of services including seedling supply, breeding model technology, and disease prevention, ensuring that farmers achieve excess profits [2][16] Market Trends - The compound growth rate for specialty aquatic products such as bass and mandarin fish significantly exceeds that of ordinary aquatic products, with a higher acceptance of high-quality aquatic feed as consumer preferences shift [2][20] Future Price Expectations - Starting from May 2024, prices for major species like grass carp and California bass are expected to rise, driven by reduced seedling supply and a stabilizing consumer demand, which will boost the demand for specialty aquatic product feed [5][23] International Expansion - Haida Group's overseas business has grown rapidly, with revenue increasing from 300 million yuan in 2012 to 14.3 billion yuan in 2024, achieving a compound annual growth rate of 38%, outpacing the domestic growth rate of approximately 19% [5][25] R&D Investment - The company has built a three-tier R&D system focusing on industry-wide basic research, market-oriented cost reduction, and practical solutions for end farmers, with 90% of R&D resources allocated to the latter two tiers [12][13] Competitive Landscape - The company’s management structure is flat, with a significant number of vice presidents, and it has implemented a comprehensive employee training and incentive system, including stock options since 2011, which enhances employee motivation and supports sustained growth [17] Future Directions - Haida Group plans to consolidate its domestic market advantages while actively expanding into international markets, replicating its successful competitive model and extending its reach into upstream and downstream sectors, including animal health and breeding [10] Profitability Forecast - The company is projected to achieve a profit of approximately 5 billion yuan in 2025, increasing to about 5.9 billion yuan in 2026, supported by steady market share growth and accelerated international expansion [26][27]

Investment Rating - The report maintains a "Strong Buy" investment rating for the company [2][5]. Core Views - The company is positioned as a leading player in the aquaculture feed industry, with a strong focus on cost-effective products and comprehensive service offerings driving sustained growth. The recovery in major aquatic product prices is expected to boost demand for the company's aquaculture feed. Additionally, the company aims to replicate its successful domestic competitive model in overseas markets, creating new growth opportunities [1][5]. Company Overview - The company is recognized as a comprehensive service leader in domestic aquaculture, with its core business in feed production and sales, holding the top position globally in feed sales. The company has maintained the number one position in domestic aquatic premix feed sales for 21 consecutive years and ranks among the top ten in poultry and livestock feed [5][11]. - In 2024, the company achieved a revenue of 114.6 billion yuan, with feed business revenue accounting for 80% and gross profit contributing 69% [12][19]. Competitive Advantages - The company continuously builds competitive barriers through a combination of product quality, service, and management. It invests approximately 26% of its profits in R&D, significantly lower raw material costs compared to industry averages, and provides a full range of services to enhance customer loyalty [5][29][39]. - The company has established a comprehensive service system that includes seedling, breeding technology, disease prevention, and safety control, ensuring that farmers achieve excess profits and enhancing user stickiness [48][50]. Market Outlook - The aquatic feed market is expected to grow due to increasing per capita consumption of aquatic products and rising penetration rates. The company is well-positioned to benefit from this growth, with plans to expand its overseas market presence, targeting a sales volume of 7.2 million tons by 2030, with a CAGR of 20% [5][11][19]. Financial Projections - The company forecasts net profits of 4.97 billion yuan, 5.86 billion yuan, and 6.63 billion yuan for the years 2025 to 2027, respectively. The target price is set at 71.76 yuan, based on a 24x PE ratio for 2025 [5][6].

Core Viewpoint - The "Shangqi Yue" appointment-based guidance service platform launched in Shangcheng District is transforming urban management from "end enforcement" to "front service," enhancing the business environment for enterprises and merchants [2][3]. Group 1: Service Features - The platform allows businesses to easily request guidance on various urban management issues, such as outdoor operations and compliance with regulations, through a simple process similar to ordering food online [2]. - It covers 32 high-frequency urban management issues across six categories, promising a response within five working days to provide legal guidance and support for rectification [2][3]. Group 2: Impact on Businesses - Since the launch of the "Shangqi Yue" service, 34 enterprises have proactively sought guidance, all receiving timely assistance, with businesses appreciating the proactive approach of "preemptive checks" over post-penalty actions [3]. - The service has helped businesses like a tea shop and a renovation project to resolve multiple compliance issues efficiently, leading to a "zero-risk" opening and significant time savings [3]. Group 3: Future Plans - The Shangcheng District Administrative Law Enforcement Bureau plans to further promote the "Shangqi Yue" service model, shifting from strict administrative checks to a more supportive preventive service approach to improve the business environment [4].