Core Viewpoint - The company expects a decline in net profit for the first half of 2025, primarily due to external factors affecting its performance [1][2]. Group 1: Performance Forecast - The company anticipates a net profit of approximately 1.83 billion yuan for the first half of 2025, a decrease of about 321 million yuan compared to the same period last year, representing a year-on-year decline of around 15% [1][2]. - The expected net profit, excluding non-recurring gains and losses, is approximately 1.81 billion yuan, which is a decrease of about 242 million yuan year-on-year, equating to a decline of around 12% [1][2]. Group 2: Previous Year Performance - In the same period last year, the net profit attributable to shareholders was 2.15 billion yuan, and the net profit after excluding non-recurring gains and losses was 2.05 billion yuan [2]. - The earnings per share for the previous year was 0.66 yuan [2]. Group 3: Reasons for Performance Change - The decline in net profit is attributed to international trade barriers, raw material prices, and market conditions, which have led to a decrease in the company's gross profit margin [2]. - The company plans to optimize its overseas production capacity and increase the promotion of high-value-added products to mitigate the impact of these factors on its performance [2].

Core Viewpoint - The article discusses the recent trends in agricultural product prices, particularly focusing on the decline in pig and chicken prices, the fluctuation of grain prices, and the increase in natural rubber prices, indicating a complex market environment influenced by supply and demand dynamics [2][3][4][5]. Group 1: Livestock Prices - The average price of external three yuan pigs in China decreased to 14.61 yuan/kg, a week-on-week decline of 1.42%, while the average price of 15 kg piglets fell to 36.23 yuan/kg, down 1.74% [2]. - The average weight of market pigs remained stable at 129.71 kg, with a national frozen product inventory rate of 14.01%, down 0.13 percentage points [2]. - The price of white feather broiler chickens dropped to 7.40 yuan/kg, a decrease of 0.67%, and chick prices fell to 2.85 yuan/bird, down 2.06% [3]. Group 2: Grain Prices - As of May 16, the average price of corn was 2374.90 yuan/ton, up 0.48%, while wheat prices increased to 2468.89 yuan/ton, a rise of 0.33%. Conversely, soybean meal prices decreased to 3115.71 yuan/ton, down 5.93% [4]. - The increase in corn prices is attributed to high demand in North China and adjustments by enterprises based on market conditions, while soybean meal prices are affected by ample supply from South America and rising inventories [4]. Group 3: Natural Rubber Prices - The domestic natural rubber futures price reached 15025 yuan/ton, reflecting a week-on-week increase of 2.18% [5]. - The demand for natural rubber is supported by the U.S. tariff exemption period for Southeast Asia, leading to increased orders from overseas tire manufacturers [5].

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [6] Core Views - The company's Q1 2025 performance met expectations, with revenue of 3.241 billion yuan, a year-on-year increase of 2.04%, and a net profit attributable to shareholders of 435 million yuan, a slight increase of 1.35% [1] - The industry is gradually stabilizing, and the company experienced good sales growth in Q1, particularly in its raw materials business, which was the main driver of revenue growth [1][2] - The company maintained good cost control, with a reduction in total expenses compared to the previous year, positively impacting net profit [3] - The company is advancing its projects in Liaoning, which are expected to optimize product layout and create new growth points for sustainable development [3] Financial Summary - For 2025-2027, the projected net profit attributable to the parent company is expected to be 1.47 billion yuan, 1.78 billion yuan, and 2 billion yuan respectively, reflecting a positive growth outlook [3] - The company's revenue for 2025 is estimated at 12.86 billion yuan, with a growth rate of 23.23% compared to 2024 [5] - The earnings per share (EPS) for 2025 is projected to be 3.61 yuan, with a price-to-earnings (P/E) ratio of 14.44 [5] Sales and Pricing - In Q1, the company achieved sales volumes of 28,700 tons for raw materials and 15,400 tons for formulations, representing increases of 14.8% and 2.8% year-on-year respectively [2] - The average prices for raw materials and formulations in Q1 were 63,000 yuan and 56,600 yuan, showing declines of 8.8% and 1.6% year-on-year [2] Cost Control and Project Development - The company reduced its sales expenses by approximately 1.65 million yuan year-on-year, while management and R&D expenses increased [3] - The first phase of the Liaoning project has been completed and is in the process of trial production, with several products already meeting quality standards [3]