Core Viewpoint - The company, Tangrenshen, is actively participating in national reserve plans and has established a strong presence in the pig farming industry, while also exploring futures trading to hedge risks. Group 1: Company Operations - As of October 13, 2025, Tangrenshen's stock closed at 4.81 yuan, down 0.41%, with a turnover rate of 2.06% and a trading volume of 295,500 shares, amounting to a transaction value of 141 million yuan [1] - The company has been involved in the national reserve plan, participating in the recent auction for 15,000 tons of frozen pork [2] - Tangrenshen has established a futures department for pig trading and is actively applying for designated delivery warehouses for pig futures [2] Group 2: Business Strategy - The company has focused on the entire pig industry chain for over 30 years, with core business segments including biological feed, healthy breeding, and branded meat products, providing stable cash flow and business synergy [3] - Tangrenshen has formed partnerships with well-known retailers such as Pandonglai, Metro, and Xiaoxiang Supermarket, as well as stable supply relationships with national chain restaurants like Haidilao [4] Group 3: Market Activity - On October 13, the main funds experienced a net outflow of 7.76 million yuan, indicating a trend of capital withdrawal from the stock [5] - Retail investors showed a net inflow of 1.03 million yuan, while speculative funds had a net inflow of 6.73 million yuan [6]

Core Viewpoint - The company has established a pig futures department and is actively engaging in pig futures hedging business [1] Group 1 - The company has set up a pig futures department [1] - The company has initiated pig futures hedging activities [1] - The company has applied for a designated pig delivery warehouse and is actively seeking additional warehouses [1]

Investment Rating - The report maintains a "Buy" rating for the company [6][4]. Core Views - The company achieved a revenue of 58.8 billion RMB in 2025H1, representing a year-over-year increase of 12.5%, and a net profit attributable to shareholders of 2.64 billion RMB, up 24.2% year-over-year [1][2]. - The growth in profitability is primarily driven by gains from pig futures hedging and strong growth in overseas feed business, with domestic aquaculture and pig feed businesses showing signs of recovery [1][2]. - The report anticipates continued domestic and international growth in the feed business, leading to an upward revision of the target price to 66.4 RMB, reflecting a 22x PE valuation for 2025 [4][6]. Summary by Sections Financial Performance - In 2025H1, the company's feed external sales increased by 26% year-over-year to 13.65 million tons, with significant growth in aquaculture feed (16%), pig feed (43%), and poultry feed (24%) [2]. - The overseas feed business maintained a high growth rate of 40%, with a gross margin increase of 2.54 percentage points to 15.1%, significantly higher than the average gross margin of the main business [2]. Market Outlook - The company is actively expanding into the feed markets in Asia, Africa, and Latin America, with a target of achieving 7.2 million tons in overseas feed sales by 2030, indicating a compound annual growth rate (CAGR) of approximately 20% [3]. - The domestic feed business is expected to recover starting in 2025, supported by rising prices in aquaculture due to declining stocking volumes and a rebound in pig inventory [3]. Profit Forecast - The report maintains profit forecasts for 2025, 2026, and 2027 at 5.02 billion RMB, 5.48 billion RMB, and 7.04 billion RMB, respectively [4][10]. - The estimated earnings per share (EPS) for 2025 is projected at 3.02 RMB, with a return on equity (ROE) of 19.69% [10][16].