Group 1: Company Overview - The company is Wens Food Group Co., Ltd., with stock code 300498 and bond code 123107 [1] - The investor relations activity took place on November 13-14, 2025, in Shenzhen and Beijing, involving multiple institutional investors [2] Group 2: Production and Operations - In October, the production cost of piglets decreased to 250-260 RMB per head, with a market pig listing rate exceeding 93% [2] - The comprehensive cost of meat pig farming was approximately 6.1 RMB per kg, showing a slight decrease compared to the previous month [2] - The chicken production maintained stability, with a market listing rate of 95.4% and a total cost of 5.7 RMB per kg for broilers [3] Group 3: Cost Management - In October, 53% of the sold meat pigs had a comprehensive cost below 6 RMB per kg, and over 90% were below 6.5 RMB per kg [5] - The cost difference among the three pig farming divisions was within 0.3 RMB per kg [5] Group 4: Future Goals and Strategies - The current PSY (Pigs per Sow per Year) is around 27, with a medium to long-term goal to exceed 32 [6] - The company aims for a 10% annual growth in the chicken business, utilizing various strategies such as cultural promotion and market expansion [9] - The company plans to explore international markets, starting with chicken and gradually expanding to pig and duck industries [9] Group 5: Market Insights - The company anticipates a weak and fluctuating trend in feed raw material prices in the short term, barring international environmental changes [9]

Core Insights - The company reported a net profit of 138 million yuan for Q3 2025, with a year-to-date revenue of 13.49 billion yuan, reflecting a year-on-year increase of 6.4%, but a significant decline in net profit by 75.3% year-on-year [1] Financial Performance - For the first three quarters of 2025, the company achieved revenues of 4.09 billion yuan, 4.27 billion yuan, and 5.14 billion yuan, with year-on-year growth rates of 11.6%, 3.0%, and 5.4% respectively [1] - The net profit for the same quarters was 206 million yuan, -57 million yuan, and 138 million yuan [1] - As of September 2025, the company's debt-to-asset ratio was 43.2%, an increase of 2.1 percentage points from June [1] Livestock Production - The company reported a total of 1.5058 million pigs sold from January to September 2025, a year-on-year increase of 90.2%, with a target of 2 million pigs for the year [2] - The average cost of raising pigs decreased from 12.8 yuan/kg in the first half of 2025 to 12.3 yuan/kg in June, with a target of 12 yuan/kg by year-end [2] - The net profit from the pig business for Q3 is estimated to be around 100 million yuan [2] Poultry Production - The company sold 415 million yellow feather chickens from January to September 2025, a year-on-year increase of 10.4% [3] - The quarterly sales figures for yellow feather chickens were 120 million, 140 million, and 150 million, with respective year-on-year growth rates of 8.7%, 11.9%, and 10.4% [3] - The cost of raising chickens decreased to below 11 yuan/kg in the first half of 2025, but saw a slight increase in Q3 due to rising raw material prices [3] Future Projections - The company expects to maintain pig sales at 2 million heads annually from 2025 to 2027, with chicken sales projected to reach 568 million, 619 million, and 668 million respectively [4] - Revenue forecasts for 2025 to 2027 are 18.242 billion yuan, 20.558 billion yuan, and 21.909 billion yuan, with corresponding net profits of 447 million yuan, 1.551 billion yuan, and 1.666 billion yuan [4] - Adjustments in projections are based on revised expectations for pig and chicken prices, production costs, and sales volumes [4]

Core Viewpoint - The company maintains a leading cost position, with a decrease in debt ratio and an increase in dividends, enhancing its risk management and profitability capabilities in the future [1] Financial Performance - The company reported a revenue of 75.82 billion yuan for the first three quarters of 2025, a slight decrease of 0.04% year-on-year, and a net profit attributable to shareholders of 5.26 billion yuan, down 18.3% year-on-year [2] - In Q3 2025, the company achieved a revenue of 25.94 billion yuan, a decline of 9.8% year-on-year, with a net profit of 1.78 billion yuan, down 65% year-on-year [2] Livestock Production - The company saw stable production in hog farming with an increase in sales, selling 9.736 million pigs in Q3 2025, up 28% year-on-year, including 8.376 million meat pigs and 1.36 million piglets, which increased by 16.5% and 225% respectively [2] - For the first three quarters, the total sales of pigs reached 27.668 million, an increase of 23.4% year-on-year, with meat pigs and piglets sold at 24.992 million and 2.676 million, respectively, reflecting increases of 15.9% and 212.4% [2] Poultry Business - The company sold 350 million live chickens in Q3 2025, an increase of 8.4% year-on-year, and a total of 950 million live chickens in the first three quarters, up 8.9% year-on-year [3] - The improvement in chick prices in Q3 is expected to turn the poultry business from a loss in the first half of the year to profitability [3] Dividend and Debt Management - The company plans to distribute a dividend of 3 yuan per 10 shares in Q3, totaling 1.99 billion yuan, which accounts for 38% of the net profit attributable to shareholders for the first three quarters [3] - The debt ratio has decreased to 49.4%, returning to a reasonable level, which is expected to allow for an increase in dividend payout as profits stabilize [3]

Core Viewpoint - The company has demonstrated significant improvements in production management and disease prevention, leading to stable operations and cost control in both pig and poultry sectors [2][3]. Group 1: Company Production and Cost Management - The company has focused on basic production management and disease prevention since the beginning of the year, achieving notable results in disease control and maintaining stable livestock production [2]. - In August, the production cost of piglets decreased to approximately 260 RMB per head, with a market pig listing rate of around 93% and a feed-to-meat ratio of 2.51 [2]. - Despite an increase in piglet and feed costs in August, the overall cost of pig farming remained stable at 6.1 to 6.2 RMB per jin, indicating effective cost control [2]. - The poultry sector also maintained high stability, with a meat chicken listing rate of 95% in August and a total cost of 5.8 RMB per jin for broilers [2]. Group 2: Cost Improvement and Market Dynamics - The improvement in pig farming costs is attributed to stable overall livestock production, effective disease control, and increased market pig listing rates, which significantly reduced ineffective losses [3]. - The company has increased investment in breeding to develop a "Five High" breeding system, enhancing the health and reproductive performance of the breeding stock beyond pre-ASF levels, which effectively lowers piglet costs [3]. - The company has optimized feed nutrition formulas by dynamically comparing different feed raw material prices and nutritional content [3]. - The average pigs sold per sow (PSY) in August was around 27 [3]. Group 3: Poultry Market Recovery - The poultry industry faced low prices in the first half of the year, but the traditional consumption peak in the second half has led to an increase in meat chicken sales prices to 6.6 RMB per jin since September, indicating a recovery in profitability [3]. - The recovery is driven by increased consumer demand and a reduction in the number of parent stock chickens due to the previous low price environment [3]. - The company anticipates that the market for traditional yellow feathered chickens will follow historical trends, expecting positive performance in the poultry sector for the second half of the year [3]. - Short-term feed raw material supply is expected to remain loose, maintaining a weak and fluctuating state [3].

Group 1: Company Overview - The company is engaged in stable production management and effective epidemic prevention, leading to improved core production indicators and cost control [2] - The company’s stock code is 300498 and bond code is 123107 [1] Group 2: Swine Production - In August, the cost of piglets decreased to approximately 260 RMB per head, with a market pig listing rate of around 93% and a feed-to-meat ratio of 2.51 [2] - The comprehensive cost of pig farming remains stable at 6.1-6.2 RMB per jin [2] - The company’s PSY (Pigs Weaned per Sow per Year) level is around 27 [5] Group 3: Poultry Production - The company’s meat chicken listing rate in August was 95%, with a feed-to-meat ratio of 2.86 [2] - The total cost of broiler chickens in August was 5.8 RMB per jin [3] - Since September, the sales price of meat chickens has risen to 6.6 RMB per jin, indicating a recovery in profitability for the poultry business [8] Group 4: Cost Management and Future Outlook - The improvement in swine farming costs is attributed to stable production, effective epidemic control, and reduced losses [4] - The company anticipates a continued weak fluctuation in raw material prices in the short term [8]

Group 1: Financial Performance - In the first half of 2025, the company achieved a net profit of approximately 35 billion CNY, with pig farming contributing about 51 billion CNY in profit and chicken farming incurring a loss of about 12 billion CNY [2][3] - The company's net profit for Q1 was 21 billion CNY, while Q2 net profit was approximately 15 billion CNY, with pig farming profit in Q2 around 26 billion CNY [2][3] Group 2: Production and Sales - From January to July 2025, the company sold a total of 21.1 million pigs, including 19.26 million in fresh and live pigs and 1.83 million piglets; chicken sales reached 709 million, with 123 million being fresh sales [4] - The company maintained a pig market release rate of approximately 93% in June, with a feed-to-meat ratio of 2.55 [6] Group 3: Cost Management - The comprehensive cost of pig farming decreased to 6.2 CNY per jin, a year-on-year reduction of about 1.2 CNY per jin, with market factors affecting approximately 40% and non-market factors about 60% [6] - The average comprehensive cost of pig farming across regions was 6.2 CNY per jin, with a variance of less than 0.2 CNY per jin among three pig farming divisions [12] Group 4: Debt and Investment - As of June 2025, the company's debt-to-asset ratio decreased to 50.6%, down 2.8% from the end of the previous year, with a target to reduce it to around 45% [9][22] - The company planned a fixed asset investment of approximately 5 billion CNY for 2025, with 2 billion CNY already invested in the first half, including 1.4 billion CNY in pig farming [23][24] Group 5: Strategic Initiatives - The company is restructuring its poultry division into three business units to enhance management efficiency and promote healthy competition [10] - A new brand strategy was introduced, adding "Wens Food" and "Wens Ingredients" to better segment the business [10]

Investment Rating - The report assigns a rating of "Buy" for the company [4] Core Views - The company is a leading player in the yellow feathered chicken breeding industry, with a market share that continues to rise. The revenue has shown steady growth over the years, with a 10-year CAGR of +15.84% from 2014 to 2024. However, the net profit has experienced significant fluctuations due to the cyclical nature of poultry prices [2][21] - The company has demonstrated significant cost advantages, which help mitigate risks associated with price fluctuations in its products. The complete cost of raising yellow feathered chickens has decreased significantly, providing a buffer against price declines [3][41] - The company has seen a substantial increase in its pig farming business, with plans to reach a pig output of 2 million heads in 2025. The complete cost of pig farming has also decreased, indicating a positive outlook for revenue and profit growth in this segment [7][54] Summary by Sections Company Overview - The company is the second-largest yellow feathered chicken breeding enterprise in China, with a market share exceeding 15%. It has maintained a stable revenue growth trajectory, with total revenue increasing from 4.074 billion to 17.725 billion from 2014 to 2024 [2][21][24] Financial Performance - In the first half of 2025, the company achieved a revenue of 8.353 billion, a year-on-year increase of 7.02%, but the net profit fell by 74.10% to 149 million, primarily due to a decline in yellow feathered chicken prices [1][21] - The company’s revenue from yellow feathered chicken accounted for 81.98% of total revenue in 2024, while the contribution from pig farming has steadily increased from 3.77% in 2019 to 16.51% in 2024 [24] Cost Management - The complete cost of raising yellow feathered chickens has decreased significantly, with the cost dropping to below 11 yuan per kilogram in the first half of 2025. This reduction is attributed to lower feed prices and improved management practices [3][41] - The complete cost of pig farming has also seen a decline, reaching 12.3 yuan per kilogram by June 2025, with expectations to further decrease to 12 yuan by the end of the year [7][54] Market Outlook - The yellow feathered chicken prices have shown signs of recovery since late July 2025, which is expected to improve profits in the third quarter. The company anticipates that the market conditions will favor further growth in both chicken and pig farming segments [8][38] - The company projects revenues of 17.924 billion, 21.016 billion, and 23.589 billion for 2025, 2026, and 2027 respectively, with net profits expected to reach 837 million, 1.829 billion, and 2.338 billion in the same years [8][59]