智通财经APP获悉，9月26日，标普全球CSA发布了现代牧业(01117)2025年度全球企业可持续发展评估 结果，现代牧业ESG得分为71分，较上年得分（57分）显著提升25%。在环境（E）、社会（S）及治理 （G）三大维度上，现代牧业均展现出全面进步，各板块得分持续增长。这一成果充分印证了公司在 ESG领域的卓越实力，夯实了其作为中国奶牛养殖行业可持续发展领军者的地位。优异成绩的取得得益 于现代牧业在以下三大领域的长期优化与持续创新。 | Explore S&P Global | | | | | Q Seeith | 13 Batipbir | | --- | --- | --- | --- | --- | --- | --- | | Who We Are V | Who We Serve V | Solutions V | | | | | | China Modern Dairy Holdings Ltd. ESG Score | | | | | | | | The SAP-Global ESO Score cannot be compand across industries. It measures ...

Core Insights - The article highlights the innovative transformation of industries in Xiangyang, focusing on companies leveraging technology and collaboration to enhance productivity and efficiency [1][2][3] Group 1: Company Innovations - Zhongli Machinery is the only green electric forklift manufacturer in Central China, exploring the "oil-to-electric" conversion for old fuel forklifts, with a market potential due to over 4 million existing fuel forklifts in China [2] - The company has developed a high-pressure heavy-duty lithium battery forklift, significantly reducing energy consumption and carbon emissions while maintaining performance [2] - Cloud Up Pastoral has implemented smart farming technologies, resulting in a 1.2-ton increase in annual milk production per cow and a reduction in labor costs to below 40% of previous levels [3] - Camel Group is focusing on low-voltage lithium batteries, addressing challenges in low-temperature performance and high-temperature endurance [4][5] Group 2: Industry Collaboration and Ecosystem - Xiangyang is fostering an industrial ecosystem characterized by leading companies driving supply chain collaboration, with Zhongli Machinery's new casting project attracting numerous supporting enterprises [6] - Shunbo Aluminum has become a key player in the recycling aluminum sector, enhancing local supply chain connections with automotive parts manufacturers [7] - The local government is promoting a "chain-based" investment strategy, resulting in a significant increase in industrial cluster development and project investments [7][8] Group 3: Employment and Community Impact - The integration of employment, entrepreneurship, and industry chains in Xiangyang has created a conducive environment for returning workers, with a notable increase in returnee entrepreneurs [10][11] - The "Mom Job" initiative in Nanzhang County has successfully provided flexible employment opportunities for women, significantly improving their income and work-life balance [12] - Overall, Xiangyang has seen a substantial rise in urban employment, with 94,000 new jobs created in the first seven months of the year [12]

Core Viewpoint - The article highlights the innovative developments and industrial transformation in Xiangyang, showcasing how companies leverage technology and collaboration to enhance productivity and efficiency while addressing environmental concerns [1][2]. Group 1: Company Innovations - Zhongli Machinery is the only green electric forklift manufacturer in Central China, focusing on converting old fuel forklifts to electric ones, with a market potential due to over 4 million existing fuel forklifts in the country [2][4]. - The company has developed a high-pressure heavy-duty lithium battery forklift that significantly reduces energy consumption and carbon emissions while maintaining performance [4]. - Cloud Pastoral has implemented smart farming technologies, resulting in a 1.2-ton increase in annual milk production per cow and a reduction in labor costs to below 40% of previous levels [5][6]. - Camel Group is transitioning to the lithium battery sector, focusing on low-voltage batteries, and has invested 3% of its revenue annually in R&D, resulting in 1,238 patents [6][12]. Group 2: Industrial Ecosystem Development - Xiangyang is fostering an industrial ecosystem characterized by leading companies driving supply chain collaboration, with Zhongli Machinery attracting numerous supporting enterprises to the region [7][8]. - The local government has implemented a strategy to create an electric forklift manufacturing cluster, enhancing market competitiveness and reducing logistics costs for companies [7][8]. - The recycling aluminum company, Shunbo Aluminum, has established strong connections with local automotive parts manufacturers, facilitating a circular economy [8][9]. Group 3: Employment and Entrepreneurship - The integration of employment, entrepreneurship, and industrial chains in Xiangyang has led to a surge in returnee entrepreneurs, with 8,390 new returnee entrepreneurs reported, a 22.17% increase year-on-year [13][14]. - The "Mom Job" initiative in Nan Zhang County has created flexible employment opportunities for women, benefiting over 3,500 women and increasing their annual income by an average of 25,000 yuan [16][17]. - The overall employment situation in Xiangyang has improved, with 94,000 new urban jobs created in the first seven months of the year, contributing to a stable employment rate of 357,000 [17].

Core Viewpoint - China Shengmu (01432.HK) reported a mid-term performance for the six months ending June 30, 2025, with revenue of 1.65 billion yuan, reflecting a year-on-year growth of 5.3% and a narrowed loss attributable to shareholders of 48.32 million yuan, down 66.4% from the previous year [1] Group 1: Financial Performance - Revenue for the six months ending June 30, 2025, was 1.65 billion yuan, representing a 5.3% increase year-on-year [1] - Loss attributable to shareholders was 48.32 million yuan, which is a 66.4% reduction compared to the same period last year [1] - The board of directors did not recommend the payment of an interim dividend for the six months ending June 30, 2025 [1] Group 2: Business Operations - The company focuses on dairy cattle breeding, producing and selling high-end desert organic raw milk, organic A2 raw milk, and DHA raw milk [1] - The company operates 34 farms, including one beef cattle farm, with a total livestock population of 146,516 heads, of which 143,553 are dairy cows [1] - The proportion of lactating cows is 44.9%, while the number of beef cattle has decreased by 9,070 heads compared to the end of the previous year, with a focus on high-end breeds such as Wagyu and Angus [1] Group 3: Product Strategy - The company continues to develop various functional raw milk products to meet diverse customer demands for high-quality raw milk [1] - The "high-end + diversification" product strategy provides a significant competitive advantage in the dairy cattle breeding industry [1]

Core Viewpoint - The article highlights the successful implementation of intelligent visual spraying control technology by Conghua Huamei Dairy Company, which has been recognized as a typical case for cost reduction and efficiency improvement in national dairy farming, establishing a benchmark for smart farming in South China [2][3]. Group 1: Technology Implementation - The intelligent visual spraying control system was upgraded from traditional spraying methods to address heat stress challenges faced by dairy cows in southern China [5][8]. - The system utilizes AI algorithms, temperature and humidity sensors, and AI visual cameras to create a smart spraying and fan linkage system, enhancing precision in monitoring and controlling cow behavior [11][12][13]. - The technology allows for real-time tracking of cow positions and dynamic activation of spraying based on environmental conditions, achieving over 60% water savings compared to traditional timed spraying methods [23][20]. Group 2: Economic Benefits - The application of this technology is projected to save 14.58 million cubic meters of water and reduce costs by approximately 2.897 million yuan, including savings on water and sewage treatment fees [33][34]. - The average milk yield per cow increased by 18.3%, contributing to a total milk production increase of 1,255 tons, resulting in additional revenue of 5.77 million yuan [37][38]. - Overall economic benefits from the technology implementation are estimated to reach 8.85 million yuan, showcasing its significant impact on operational efficiency [38]. Group 3: Industry Impact - The technology is particularly beneficial for dairy farms in regions with high temperatures and limited water resources, providing a replicable solution for similar farming environments [39][41]. - The Conghua district, where Huamei Dairy is located, reported a total agricultural output value of 2.828 billion yuan in the first half of 2025, marking a 10% year-on-year growth, with dairy production leading the sector [45][46]. - The integration of this technology into Huamei Dairy's operations is expected to drive further advancements in smart feeding and health monitoring, contributing to the overall transformation of the dairy industry towards smart and low-carbon practices [51][58].

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the **agriculture industry**, focusing on **animal protein sectors** such as **pig farming**, **dairy farming**, and **beef cattle farming** [1][2][34]. Core Insights and Arguments Pig Farming - The **pig farming cycle** is driven by production capacity, with the number of breeding sows being a critical leading indicator. This needs to be cross-verified with data on sow feed sales [1][2]. - The **African swine fever** has normalized, raising the industry's cost base, which affects the peak and elasticity of the cycle [1][4]. - **Scale farming** may extend the pig cycle and amplify price fluctuations. Secondary fattening increases price disturbances, influenced by short-term price expectations [1][5]. - The **反内卷 (anti-involution) policy** aims to reduce the number of breeding sows and lower slaughter weights to support pig prices [1][11]. - The average price of pigs is expected to rise to over **16 RMB per kilogram** by **2026**, with **牧原股份 (Muyuan Food)** potentially achieving a profit of nearly **500 RMB per head** [1][14]. Dairy Farming - The dairy industry faces challenges due to falling milk prices, currently around **3 RMB per kilogram**, down from **4.5 RMB**. However, there is potential for demand improvement due to increased willingness to have children and government subsidies for newborns [1][17]. - The beef cattle sector has a long growth cycle and is heavily reliant on imports, with significant industry clearing observed [1][18][20]. Market Dynamics - The **white chicken farming** sector is significantly impacted by overseas breeding policies, with potential for market share growth for **圣农 (Sannong)** during periods of import disruption [3][25]. - The **seafood feed** segment is expected to improve due to rising prices of common aquatic products, with **海大集团 (Haida Group)** showing strong performance in this area [3][27]. Other Important Insights - The **agricultural new consumption trends** include rapid growth in pet food and pet healthcare sectors, indicating new growth potential beyond traditional areas [6][34]. - The **agricultural input products** like feed and veterinary products serve as lagging indicators in the animal protein supply chain, aiding in capacity data assessment [7][34]. - The **grain security** theme is increasingly important, with policies and market dynamics needing close attention [8][30]. Investment Recommendations - Focus on core assets like **牧原 (Muyuan)** and **温氏 (Wens Food)**, which have strong cost control and are less affected by the anti-involution policy [12][13]. - The **港股 (Hong Kong stock market)** upstream livestock companies are currently in a challenging phase but are expected to improve by **2026** as the new cycle begins [22]. - **海大集团 (Haida Group)** is recommended for its strong market position and growth potential in both domestic and international markets [27]. Future Trends - The pig farming sector is expected to benefit from the anti-involution policy, leading to a new upward price cycle in **2026** [15][34]. - The **meat cattle industry** is facing significant challenges, including price declines and industry losses, with a low degree of scale [20][21]. This summary encapsulates the key points discussed in the conference call, providing insights into the current state and future outlook of the agriculture industry, particularly in the animal protein sectors.

Group 1 - Daqing Ermu, a core dairy source base for Modern Dairy Group in Northeast China, commenced operations in March 2024, focusing on large-scale dairy cattle breeding and high-quality raw milk production [3] - The farm utilizes advanced technology, including fully automated milking equipment, to ensure stable raw milk supply while adhering to a management philosophy of "safe, high-quality, high-yield, and efficient" [5] - The farm employs a three-tier intelligent system to adapt to natural rhythms, ensuring a comfortable environment for dairy cows during the seasonal transition [7] Group 2 - The ecological cycle at Daqing Ermu is supported by the fertile black soil, which nourishes the dairy cows with high-quality forage, creating a sustainable cycle of "breeding - environmental protection - planting" [9] - An intelligent monitoring system captures seasonal changes, aligning with the health needs of the cows during the transition period, promoting their well-being [10] - Daqing Ermu contributes to the local economy by providing safe, nutritious, and green raw milk while creating job opportunities and fostering industrial synergy [10]

Group 1: Company Overview - Yuran Dairy's stock price has increased from 1.03 HKD to 3.92 HKD, indicating significant growth potential despite current valuations [1][3] - The company has a strong relationship with Yili, selling nearly all its products to them, which provides a stable revenue stream [3][4] - Yuran Dairy's high debt ratio is a concern, but its cash flow is robust due to guaranteed sales to Yili [4][8] Group 2: Investment Strategy - The investment approach for Yuran Dairy has shifted from a left-side trading strategy (buying on dips) to a right-side strategy (buying on upward trends) [2][4] - The company is expected to benefit from an industry cleanup starting in the second half of 2024, which could improve profitability [2][8] - The current market conditions and capital inflow into the dairy sector have positively impacted Yuran Dairy's stock price [4][5] Group 3: Market Dynamics - The dairy farming industry is facing high levels of debt and losses, with 90% of companies in the sector currently unprofitable [8] - The cyclical nature of the pig farming industry is highlighted, suggesting that similar dynamics may affect dairy farming in the future [5][8] - The upcoming third quarter is critical for cash flow management in the dairy sector due to the need for feed purchases [7][8]

Core Insights - The Chinese dairy industry has made significant advancements, surpassing EU standards in key quality indicators such as protein, fat, somatic cell count, and total bacterial count, marking a historic leap in quality [1][2][4] - The average milk yield per cow in China has reached international advanced levels, with large-scale farms producing over 10 tons of fresh milk annually [2][5] - The report indicates that the quality of Chinese milk is at its best historical level, with protein and fat content comparable to developed countries, making it one of the safest and most nutritious food options for consumers [2][4] Industry Development - The Chinese dairy industry has transitioned from being a global laggard to a leader through continuous exploration and innovation, establishing a high-quality development path [5] - Inner Mongolia is a key region for milk production, contributing to one-fifth of the national supply, with major investments in dairy clusters enhancing competitiveness [6] - The average scale of dairy farms in China is now among the largest globally, with 78% of farms housing over 100 cows by 2024 [6][7] Quality Improvement - The average bacterial count in raw milk from leading companies like Yili has been maintained below 10,000 CFU/mL for two consecutive years, significantly lower than the EU standard of 100,000 CFU/mL [3][4] - High-quality raw milk is essential for the dairy processing industry, improving product competitiveness and consumer confidence in domestic dairy products [4][10] Technological Innovation - The integration of digital tools and mechanization in dairy farming has significantly improved labor efficiency and production quality [8] - Smart farming technologies, such as automated feeding systems and environmental control, have enhanced the living conditions for dairy cows, leading to increased milk production and quality [7][8] Future Outlook - The report emphasizes the need for the Chinese dairy industry to focus on innovation, collaboration, and sustainable practices to enhance competitiveness and profitability [9][10] - The industry is encouraged to adopt moderate-scale farming, improve feed efficiency, and develop local feed resources to reduce costs and increase revenue [9][10] - The transformation of agricultural waste into valuable resources, such as organic fertilizers and biogas, showcases the industry's commitment to sustainability and economic growth [11]

Summary of China Shengmu's Conference Call Company Overview - **Company**: China Shengmu - **Industry**: Organic Dairy Market in China Key Points and Arguments Market Demand and Growth - The demand for organic milk in China is growing, benefiting Shengmu as the largest organic farm in the country due to consumer preference for high-end, healthy products [2][3] - The optimistic market outlook is supported by rising per capita consumption levels, which will further drive the organic milk market [2] Raw Milk and Beef Prices - Raw milk prices have been declining since 2021, but the rate of decline has slowed, with prices expected to stabilize as production capacity nears clearance [2][4] - Beef prices have rebounded since 2023 due to anti-dumping policies and supply shortages, significantly improving Shengmu's profit performance [2][4] Financial Projections - Shengmu is expected to incur losses in 2025 but conservatively estimated to achieve a profit of approximately 400 million yuan in 2026, corresponding to a PE ratio of about 5 times, indicating significant valuation upside compared to peers [2][6] - The company maintains a gross margin of around 30% and exhibits strong financial metrics, including cash ratios [2][4] Competitive Advantages - Shengmu's raw milk sales price has consistently remained around 4 yuan, with a high proportion of specialty milk (organic, A2, etc.) enhancing its defensive and operational resilience during price downturns [2][24] - The geographical advantage of being located in the Ulan Buh Desert provides ample underground water and fertile soil, supporting feed crop cultivation [2][25] - The partnership with Mengniu ensures stable milk supply, with a structure requiring over 80% of milk to be supplied to Mengniu [2][22] Industry Dynamics - The Chinese dairy processing industry is characterized by a fragmented upstream supply of dairy farms, while midstream and downstream sectors are dominated by major players like Yili and Mengniu [2][7] - The scarcity of upstream breeding resources is pushing the industry towards larger-scale operations, with only about 2% of farms having over 100 cows as of 2022 [2][8][9] Future Trends - The global organic food market is valued at hundreds of billions, with China's market expected to continue double-digit growth, indicating a strong future for high-end organic products [2][21] - Shengmu's unique position as the first brand to receive dual organic certification from China and the EU enhances its market standing [2][23] Profitability and Valuation - The stabilization and potential rebound of milk prices will significantly enhance the fair value of biological assets, with a potential increase of 240 million yuan if each cow appreciates by 1,000 yuan [2][27] - The beef business, which was previously a loss-maker, is expected to contribute positively to profits in 2025 due to rising beef prices [2][28] Challenges and Risks - The industry faces challenges such as high costs associated with feed crop cultivation and environmental management for large-scale farms [2][11] - Socialized farms are under pressure due to low profitability and high debt levels, leading to a potential wave of exits from the market [2][16][17] Conclusion - Shengmu's focus on high-margin organic products, strategic partnerships, and favorable market conditions position it well for future growth, despite short-term challenges and expected losses in 2025 [2][26][30]