Investment Rating - The report assigns a "Buy" rating for the company, marking it as a first-time recommendation [13]. Core Insights - The report highlights that Dekang Agriculture has successfully transitioned from a heavy asset model to a light asset model, becoming a leader in China's pig farming industry. The company has established a low-investment, high-turnover, and high-return pig farming system, achieving a per-head profit of 403 RMB in 2024, with ROE and ROIC at 38% and 29% respectively, outperforming peers [4][18]. Summary by Sections Company Overview - Dekang Agriculture has innovatively transformed its business model, overcoming initial challenges such as training difficulties, high investment, and trust issues. The company has effectively responded to the African swine fever crisis, turning industry challenges into competitive advantages [4][18]. Profitability and Growth - The company has a significant cost advantage in pig farming, with a per-head profit that ranks among the top tier of listed pig farming companies. The number of pigs slaughtered has increased from 1.37 million in 2020 to 8.78 million in 2024, with a projected total cost of 13.6 RMB per kilogram in 2024, the best in the industry [9][34][39]. Management and Strategy - The management team has extensive experience in the agricultural sector, with a focus on long-term growth and innovation. The company emphasizes a value system of "big sacrifice for big gain, not difficult to do, and hard work," fostering a dedicated and professional team [10][44]. Development Path - Dekang Agriculture has built a robust breeding system and has been proactive in addressing the challenges of traditional pig farming. The introduction of the "No. 2 farm model" has allowed for a more efficient and profitable farming approach, with a focus on training and support for farmers [11][54]. Market Position - The company has seen a compound annual growth rate (CAGR) of 44% in pig slaughtering from 2018 to 2024, significantly outpacing the industry average of 0.2%. The pig farming segment contributes 81% of the company's revenue and 93% of its gross profit in 2024 [24][31].