Investment Rating - The report initiates coverage with a "Buy" rating for the company [2][8]. Core Insights - The company focuses on hybrid corn seed breeding, production, and sales, leveraging its strong market position through innovative product development and a comprehensive sales network [7][20]. - The corn supply and demand are in a tight balance, with high-quality varieties gaining market acceptance, driven by stable feed consumption and increasing demand for deep processing [7][44]. - The company has a robust pipeline of transgenic varieties and is advancing their commercialization, positioning itself favorably within the industry [7][8]. Company Overview - The company is led by corn breeding experts and has established a strong market presence in the Southwest region, expanding into new markets such as the Huang-Huai-Hai and Northern regions [20][31]. - The integrated breeding, propagation, and promotion model adopted by the company enhances its operational efficiency and product innovation [27][29]. - The company has achieved significant revenue growth, with a projected CAGR of 30.5% for revenue and 42.1% for profit from 2022 to 2024 [7]. Industry Analysis - The corn market is characterized by a stable planting area and increasing yields, with the Northeast, Huang-Huai-Hai, and Southwest regions being the primary production areas [44][59]. - The demand for high-protein corn is expected to grow, aligning with national goals to reduce soybean meal usage in feed formulations [49][50]. - The deep processing sector for corn is also expanding, with a shift towards high-value products, further driving corn consumption [55]. Financial Projections - The company is expected to achieve net profits of 0.96 billion, 1.23 billion, and 1.50 billion yuan from 2025 to 2027, with corresponding P/E ratios of 25, 19, and 16 [6][8]. - The target market capitalization is set at 4.5 billion yuan, indicating a potential upside of 90% from the current market price [8].

Group 1: Investor Relations Activity - The investor relations activity was conducted online from May 6 to May 8, 2025, with participation from various investment firms and funds [3][4] - Key attendees included the company's board members and financial executives [4] Group 2: Sales Performance and Strategic Planning - The company introduced the corn variety "Kangnongyu 8009," which has received positive feedback and is expected to significantly increase market share in the Huanghuaihai region [5][6] - The company is exploring a "grain production integration" model and plans to enhance its product lineup with multiple new varieties in the Huanghuaihai region [6] Group 3: Transgenic Development - The company has obtained a transgenic production license and is actively developing the transgenic variety "Kangnong 20065KK," with over 300 acres planned for demonstration planting this year [6][7] - The company is also conducting regional trials in the Southwest and East North China areas to promote transgenic technology [6][7] Group 4: High-Protein Corn Initiatives - The company has been collaborating with Huazhong Agricultural University since 2018 to develop high-protein corn varieties, with current products exceeding 12% protein content [8] - The demand for high-lysine corn varieties is urgent and holds significant application value in the feed industry [8] Group 5: Regional Planning and Positioning - In the Southwest region, the company has established a sales network for new varieties and plans to implement a large single product strategy [9] - The company is adjusting its strategy in the East North China region, with promising results from varieties showing disease resistance [9] Group 6: Fundraising Project Progress - The annual production base project for hybrid corn seeds has achieved a revenue of approximately ¥47.25 million as of December 31, 2024 [10][11] - The ongoing technical upgrade project is expected to enhance processing and storage capacity, addressing production bottlenecks and improving seed quality [10][11]