Group 1: Company Overview - The company primarily engages in the breeding of parent stock broilers, production and sales of commercial broiler chicks, and processing of broiler meat products [2] - The main products include commercial broiler chicks and chicken meat products, with a subsidiary focused on slaughtering and processing frozen chicken products [2] Group 2: Breeding and Supply Chain - Due to avian influenza, there has been no foreign introduction of grandparent stock chickens since last year, with the breeding volume remaining around 1.5 million sets for both 2024 and 2025 [3] - The company raises parent stock breeds AA and Ross, which are popular in the domestic market [3] Group 3: Market Outlook - China has a large demand for animal protein, with chicken being the second-largest meat consumed, although per capita consumption still lags behind developed countries [4] - The market for white feather broilers is growing, supported by the increasing popularity of ready-to-eat chicken products in households [4] Group 4: Financial Health and Risk Management - The company has maintained over 2 billion CNY in annual revenue for the past two years, indicating a stable operational capacity despite concerns about continuous losses [5] - Various dimensions and indicators are considered for delisting risk warnings, including trading volume, market capitalization, and financial performance [5] Group 5: Infrastructure and Operations - The Linyi hatchery has been fully operational, strategically located to serve a concentrated customer base in a key broiler farming area, enhancing service efficiency [6] - The company operates two cooked food factories, utilizing both traditional and e-commerce sales channels to expand brand recognition [7][8] Group 6: Strategic Focus - The company currently focuses on broiler farming and does not have plans for diversification into pig farming despite the potential market size [8] - The major shareholder's shares are not currently pledged, indicating financial stability at the ownership level [8]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company has experienced a rebound in chick prices, leading to a recovery in profitability, with continued growth in the sales of chick breeds and breeding pigs [1][4] - The company reported a revenue of 2.036 billion yuan for the first three quarters, a decrease of 5.44% year-on-year, and a net profit of 32 million yuan, down 89.42% year-on-year [7] - The sales volume of white feather chicks continued to grow, with a total of 490 million chicks sold in the first three quarters, an increase of 13.3% year-on-year [7] - The company has solid competitive advantages in breeding supply, with a significant increase in breeding pig sales [7] - The forecast for revenue from 2025 to 2027 is 3.385 billion yuan, 3.947 billion yuan, and 4.509 billion yuan respectively, with net profits expected to be 121 million yuan, 308 million yuan, and 588 million yuan [7][8] Financial Performance Summary - Revenue for 2023 is projected at 3.225 billion yuan, with a growth rate of 52.7% [5] - The net profit for 2023 is expected to be 541 million yuan, with an EPS of 0.54 yuan [5] - The PE ratio for 2025 is projected to be 83.7, decreasing to 17.3 by 2027 [5] - The company’s return on equity (ROE) is expected to be 2.9% in 2025, improving to 13.0% by 2027 [5][8]