Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 51.30 [7][8]. Core Insights - The company has experienced a significant year-on-year increase in pig output, with April's output reaching 8.11 million heads, a 49% increase compared to the previous year. Cumulatively, from January to April, the total output was 30.77 million heads, up 43% year-on-year [2]. - The complete breeding cost has improved significantly, dropping to RMB 12.4 per kilogram in April, a decrease of approximately RMB 0.7 per kilogram since the beginning of the year. The company aims to reduce the annual complete cost to RMB 12 per kilogram [2]. - The company is advancing its internationalization strategy by submitting an application for H-share issuance, which is expected to enhance its global business footprint and investor relations [3]. Summary by Sections Production and Cost Management - The company has successfully increased its pig output while reducing costs, with a clear path for further cost reductions through improved disease control and feed technology [2]. - The strategy to enhance the value of individual pigs through better meat quality and higher yield from valuable parts is also being implemented [2]. International Expansion and Investor Relations - The submission of the H-share listing application is a strategic move to tap into the global market, which is still expanding. This is expected to reshape the company's investment value perception [3]. - The company emphasizes sustainable cash dividends and plans to adjust its profit distribution policy dynamically to share development benefits with investors [3]. Financial Forecast and Valuation - The report maintains profit forecasts for the company, projecting net profits of RMB 19.73 billion, RMB 18.26 billion, and RMB 47.17 billion for the years 2025, 2026, and 2027 respectively [4]. - The estimated price-to-book ratio for 2025 is maintained at 3.3x, with a target price set at RMB 51.30 [4].

Core Viewpoint - The company has shown improved profitability in Q1 2025, driven by lower feed prices and enhanced production efficiency, leading to a decrease in the debt-to-asset ratio to 51% [1][3]. Financial Performance - In 2024, the company reported revenue of 104.9 billion yuan (up 17% year-on-year) and a net profit of 9.23 billion yuan (turning from loss to profit) [1]. - For Q4 2024, the company achieved revenue of 29.5 billion yuan (up 17% year-on-year) and a net profit of 2.82 billion yuan (turning from loss to profit) [1]. - In Q1 2025, the company reported revenue of 24.3 billion yuan (up 11% year-on-year) and a net profit of 2.0 billion yuan (turning from loss to profit) [2]. Segment Performance - In the pig farming segment for 2024, the company sold 30.18 million pigs (up 15% year-on-year) with estimated costs of 14.0-14.5 yuan/kg, achieving a profit of 280-330 yuan per pig [1]. - In the chicken farming segment for 2024, the company sold 1.21 billion chickens (up 2.1% year-on-year) with estimated costs of 12.0-12.5 yuan/kg, achieving a profit of 1.5-2.0 yuan per chicken [1]. - In Q1 2025, the company sold 8.59 million pigs (up 20% year-on-year), with estimated costs of 12.5-13.0 yuan/kg, achieving a profit of 270-320 yuan per pig [2]. - In Q1 2025, the company sold 282 million chickens (up 5.4% year-on-year), with estimated costs of 11.0-11.5 yuan/kg, incurring a loss of 0.8-1.3 yuan per chicken [2]. Cash Flow and Debt Management - The company experienced improved cash flow, with net operating cash inflows of 6.8 billion yuan in Q4 2024 and 3.82 billion yuan in Q1 2025, contributing to a decrease in the debt-to-asset ratio to 51% [3]. - The breeding stock of sows increased to approximately 1.74 million by the end of 2024, up 12% year-on-year, supporting stable production growth [3]. Investment Outlook - The company maintains a "strong buy" investment rating, with expected net profits of 9.16 billion yuan, 11.3 billion yuan, and 13.1 billion yuan for 2025-2027, corresponding to P/E ratios of 12X, 10X, and 8.6X respectively [3].

Core Viewpoint - The company reported strong Q1 2025 results with significant year-on-year growth in revenue and net profit, indicating robust operational performance and cost management strategies [1][2][4]. Group 1: Financial Performance - Q1 2025 revenue reached 36.061 billion yuan, a year-on-year increase of 37.26% but a quarter-on-quarter decrease of 12.41% [1]. - The net profit attributable to shareholders for Q1 2025 was 4.491 billion yuan, showing a year-on-year increase of 288.79% and a quarter-on-quarter decrease of 39.31% [1]. - The company sold 22.66 million pigs in Q1 2025, representing a year-on-year increase of 42% and a quarter-on-quarter increase of 5.6% [2]. Group 2: Operational Highlights - The average profit per pig was 200 yuan, significantly higher than the industry average of approximately 93 yuan, attributed to a decrease in breeding costs to around 12.9 yuan per kilogram [2]. - The slaughtering volume reached 5.29 million pigs in Q1 2025, a year-on-year increase of 80% and a quarter-on-quarter increase of 15% [2]. - The utilization rate of slaughtering capacity exceeded 70%, improving by over 30 percentage points year-on-year, driven by enhanced sales channels and operational management [2]. Group 3: Future Outlook - The company aims to achieve a target of 72 to 78 million market pigs and 8 to 12 million piglets in 2025, indicating a year-on-year growth of 10% to 19% for market pigs and 41% to 112% for piglets [3]. - The company plans to continue reducing costs through advancements in health management, breeding, nutrition research, and smart applications [3]. - The establishment of a subsidiary in Vietnam and plans for an H-share listing are expected to enhance the company's international presence and long-term growth potential [3]. Group 4: Valuation and Profit Forecast - The company has adjusted its profit forecasts for 2025, 2026, and 2027 to 19.7 billion, 18.3 billion, and 47.2 billion yuan respectively, reflecting increases of 39%, 36%, and 9% [4]. - The target price is set at 51.30 yuan, with a price-to-book ratio of 3.3x for 2025, maintaining a "buy" rating [4].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 51.30 [7][8]. Core Insights - The company reported strong Q1 performance with a significant increase in both revenue and profit, driven by higher sales volume and improved cost management [1][2]. - The company aims for continued high-quality growth in 2025, with expected sales of 72 to 78 million market pigs, representing a year-on-year increase of 10% to 19% [3]. - The report highlights the company's focus on cost reduction and operational efficiency, with the complete cost of fattening pigs dropping to RMB 12.5 per kilogram in March 2025 [3][4]. Summary by Sections Q1 Performance - In Q1, the company sold 22.66 million pigs, a year-on-year increase of 42% and a quarter-on-quarter increase of 5.6% [2]. - The average profit per pig was RMB 200, significantly higher than the industry average of RMB 93, due to reduced costs [2]. Cost Management and Growth Projections - The company is expected to continue reducing costs through advancements in health management, breeding, and nutrition [3]. - The target for 2025 includes a total pig output of 72 to 78 million, with a notable increase in piglets [3]. Financial Forecasts - The report projects the company's net profit for 2025, 2026, and 2027 to be RMB 197 billion, RMB 183 billion, and RMB 472 billion respectively, with significant upward adjustments from previous estimates [4]. - The estimated price-to-book ratio for 2025 is set at 3.3x, reflecting the company's growth potential [4].