Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company is expected to achieve steady growth throughout the year, driven by the expansion of new varieties in the Huang-Huai-Hai market [7] - The company reported a revenue of 0.46 billion yuan in H1 2025, a year-on-year decrease of 2.68%, while the net profit attributable to the parent company was 0.09 billion yuan, an increase of 12.22% year-on-year [7] - The company is focusing on promoting its core hybrid corn seed business, with new varieties showing strong performance and demand growth [7] Financial Forecasts - Total revenue is projected to reach 403 million yuan in 2025, with a year-on-year growth of 19.71% [1][8] - Net profit attributable to the parent company is expected to be 90.87 million yuan in 2025, reflecting a year-on-year increase of 10.01% [1][8] - The earnings per share (EPS) is forecasted to be 0.91 yuan in 2025, with a price-to-earnings (P/E) ratio of 27.64 based on the latest diluted EPS [1][8] Market Data - The closing price of the stock is 25.28 yuan, with a market capitalization of 2,511.85 million yuan [5] - The company has a price-to-book (P/B) ratio of 5.21 and a total asset-liability ratio of 39.21% [5][6] Operational Insights - The company has increased its sales and marketing expenses to promote its core products, resulting in a sales expense ratio of 22.92% in Q2 2025, up by 6.99% year-on-year [7] - The gross profit margin improved to 39.46% in H1 2025, an increase of 13.47 percentage points year-on-year, due to higher production yields and better pricing power [7]

Group 1: Investor Relations Activity Overview - The investor relations activity was an earnings briefing held on May 21, 2025, from 15:00 to 16:00 [3] - The event was conducted online via www.ir-online.cn, with participation from various investors [3] - Key company representatives included CEO Peng Xubing, Secretary Li Danni, and CFO Deng Huayong [3] Group 2: Industry Challenges and Company Strategy - The corn seed industry is currently facing an oversupply situation, presenting both challenges and opportunities for the company [5] - The company aims to enhance its market share and profitability by focusing on high-yield, resilient new varieties and leveraging transgenic technology [5] - The company is committed to maintaining long-term partnerships with feed enterprises to secure demand [5] Group 3: International Market Expansion - The company is actively exploring international markets, conducting variety trials in Southeast Asia (Cambodia, Pakistan) and Africa (Nigeria, Angola, Madagascar) [5] - The goal is to establish overseas partnerships to promote products and services globally [5] Group 4: Product Development and Market Strategy - The company has successfully developed transgenic corn variety Kangnong 20065KK, which has shown stable performance in trials [7] - Plans are in place to expand production scale and market promotion in the coming year, with over 300 acres already designated for demonstration planting [7] - The company is focusing on building a diverse product matrix in key regions like Huanghuaihai and East North China to enhance competitiveness [8] Group 5: Mergers and Acquisitions Considerations - The company is considering mergers and acquisitions to diversify its business and improve risk resilience, evaluating potential targets based on industry conditions and strategic alignment [6][8] - Any significant developments will be disclosed in accordance with the Beijing Stock Exchange listing rules [6][8] Group 6: Research and Development Collaborations - The company has established strategic partnerships with agricultural research institutions to enhance R&D capabilities in the Northeast region [8] - This collaboration aims to address specific challenges such as disease resistance in corn varieties [8]