Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown steady development in its pig farming business and plans to acquire 51% of Qiangdu Livestock through a cash purchase, which is expected to enhance its operational capacity [5][6] - In the first half of 2025, the company achieved a revenue of 8.85 billion yuan, a year-on-year increase of 10.7%, and a net profit attributable to shareholders of 338 million yuan, up 22.3% year-on-year [3][4] - The company aims to achieve a pig output target of 3.5 to 4 million heads in 2025, with a significant reduction in self-breeding costs to 12.55 yuan per kilogram [4][5] Financial Performance - The company reported a net profit of 338 million yuan for the first half of 2025, with a debt-to-asset ratio of 47% as of June 30, 2025, down 4.4 percentage points from March 2025 [3] - The company’s total revenue for 2025 is projected to reach 19.01 billion yuan, with a year-on-year growth of 10.7%, and net profit is expected to be 745 million yuan, reflecting a 23.1% increase [8][10] - The company’s gross profit margin is expected to improve, with projections of 12.1% in 2024 and 13.0% by 2027 [10] Operational Insights - The company has successfully increased its pig output, with 1.5282 million pigs sold in the first half of 2025, a 9.1% increase year-on-year, achieving 38.2% to 43.7% of its annual target [4][5] - The acquisition of Qiangdu Livestock is expected to integrate existing capacities without adding new production, aligning with current pig farming regulatory policies [5][6] - The company’s feed sales volume decreased slightly by 0.6% year-on-year, but the revenue from feed dropped by 14.2%, indicating challenges in the feed segment [5][6]