Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index in the next six months [4][16]. Core Views - The company has achieved profitability in its breeding business, with ongoing cost reduction and efficiency improvements [2][3]. - The slaughtering segment shows steady growth with a significant increase in gross margin, benefiting from favorable market conditions and operational efficiencies [2][3]. - The company is positioned as a leading player in the pig slaughtering industry in Zhejiang Province, with a comprehensive layout across the entire pig industry chain [3]. Financial Summary - Revenue is projected to grow from 85.78 billion CNY in 2023 to 129.24 billion CNY by 2027, with year-on-year growth rates of -9.2%, 6.0%, 9.4%, 15.6%, and 12.5% respectively [1][3]. - The net profit attributable to the parent company is expected to recover from a loss of 605 million CNY in 2023 to a profit of 702 million CNY in 2027, with significant growth rates of -789.3%, 112.1%, 177.3%, 104.9%, and 69.2% [1][3]. - The company’s return on equity (ROE) is forecasted to improve from -28.8% in 2023 to 21.1% in 2027 [1][3]. Operational Highlights - In the first half of 2025, the company achieved revenue of 4.244 billion CNY, representing a year-on-year increase of 1.89%, and a net profit of 76 million CNY, up 163.98% year-on-year [1][2]. - The slaughtering business generated revenue of 4.142 billion CNY in the first half of 2025, with a gross margin of 7.33%, reflecting a year-on-year increase of 4.05 percentage points [2]. - The breeding segment saw a reduction in piglet sales, focusing on increasing the output of commercial and breeding pigs, which is expected to further optimize breeding costs [2].