Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Insights - The company reported a significant increase in net profit attributable to shareholders, with a year-on-year growth of 792% in H1 2025, driven by investment income recognition and optimized breeding costs [1][8] - The company's revenue for H1 2025 was 8.856 billion yuan, a slight increase of 0.22% year-on-year, with Q2 revenue reaching 4.742 billion yuan, up 15.24% quarter-on-quarter and 2.59% year-on-year, primarily due to increased sales volume [1][8] - The company achieved a net profit of 910 million yuan in H1 2025, with Q2 net profit at 763 million yuan, reflecting a substantial increase of 416.89% quarter-on-quarter and 365.12% year-on-year [1][8] - The improvement in performance is attributed to enhanced performance of the proprietary breed "901+" and a higher internal usage ratio, alongside a more refined management approach, resulting in a more than 10% decrease in comprehensive meat production costs compared to the same period last year [1][8] - The completion of the consolidation of the joint venture Anhui Taiyanggu led to an increase in investment income by 568 million yuan compared to the previous year [1][8] Revenue and Profitability - The company's sales volume for raw food reached 660,900 tons in H1 2025, a year-on-year increase of 2.50%, with revenue of 4.674 billion yuan, down 8.17% year-on-year, and a gross margin of 6.34%, up 2.37 percentage points [2] - The deep processing meat products segment saw sales of 174,500 tons, a year-on-year increase of 13.21%, with revenue of 3.693 billion yuan, up 19.10%, and a gross margin of 18.42%, down 0.88 percentage points [2] - The overall sales gross margin for H1 2025 was 11.97%, an increase of 2.73 percentage points year-on-year, while the net profit margin was 10.39%, up 9.42 percentage points year-on-year [2][12] Cash Flow and Efficiency - The company's operating cash flow net amount for H1 2025 was 1.425 billion yuan, a year-on-year increase of 37.95%, with the cash flow net amount accounting for 16.09% of revenue, up 4.40 percentage points year-on-year [3][18] - The inventory days were 72 days, a decrease of 0.53% year-on-year, while accounts receivable turnover days increased by 44.17% to 26.47 days [3][18] Financial Forecasts - The company has adjusted its net profit forecast for 2025 to 1.375 billion yuan, maintaining forecasts for 2026 and 2027 at 1.210 billion yuan and 1.475 billion yuan, respectively [3][21] - Corresponding earnings per share for 2025-2027 are projected to be 1.11 yuan, 0.97 yuan, and 1.19 yuan [3][21]