1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - In May, the A-share market rose slightly overall with a stable index but significant structural changes. The market style was biased towards micro-cap and medical sectors, with relatively average profit - making effects, decreased trading activity, and increased industry rotation speed [3][6]. - Due to the interweaving of internal and external factors, the index is expected to fluctuate in June. Although the most severe external risk disturbances may have passed, vigilance against the Trump administration's policy reversals is still needed. Domestic policies are actively implemented, and it is expected that exports will maintain high growth in the short - term, with consumption remaining an important driving force for economic recovery [3][31]. - There are three certain main investment lines: domestic demand consumption, domestic substitution, and under - weighted sectors by funds. In June, the market may tend to a defensive style, and attention should be paid to the Internet and consumption directions in the Hong Kong stock market [3]. 3. Summary According to the Directory 3.1 Three Market - Concerned Core Issues 3.1.1 Core Issue One: Stable Index Points but Significant Structural Changes - In May, the A - share market rose slightly overall, with the Shanghai Composite Index closing slightly higher. The WanDe Micro - cap Stock Index and CSI 2000 had relatively high gains, while the STAR 50 Index declined [6]. - In terms of industries, environmental protection and pharmaceutical biology led the gains, while electronics and social services led the losses. The market style was biased towards micro - cap and medical sectors. The micro - cap style outperformed in May, with the WanDe Micro - cap Stock Index rising 9.3%. The medical and healthcare sector rose 6.2%, outperforming other sectors [11][15]. - The market's profit - making effect was relatively average in May, with the net outflow of equity ETF funds exceeding 40 billion yuan. Market trading activity decreased, while industry rotation speed increased [20][26]. 3.1.2 Core Issue Two: Interweaving of Internal and External Factors, Expected Overall Index Fluctuation - The most severe short - term external risk disturbances may have passed, but vigilance against the Trump administration's policy reversals is still needed. Trump's previous trade frictions with many countries and his current short - term compromise are for a buffer for his anti - globalization policies [31][35]. - Trump's previous technology policies against China mainly restricted technology product exports and the development of Chinese enterprises. The new round of US technology policies may focus on restricting the AI industry [39][42]. - US stock enterprises may face greater profit pressure this time, and it is difficult to hedge through tax cuts. Domestic policies are actively implemented, and it is expected that the economy in the second quarter will remain resilient. Exports may maintain high growth in the short - term, consumption will still be an important driving force for economic recovery, industrial production will remain high, and investment growth is expected to remain high [44][50]. 3.1.3 Core Issue Three: What are the Certain Main Lines? - Domestic demand consumption: It has been the focus of domestic policies, and future policies are expected to continue to catalyze. The consumer industry has relatively low overseas revenue and more resilient performance. Some consumer industries, such as household products, food processing, professional services, and leisure food, are worthy of attention [73]. - Domestic substitution: In 2018, the domestic substitution direction once achieved excess returns. Two investment clues are worthy of attention: industries with high dependence on US imports and strong domestic supply capabilities, and industries with high dependence on US imports but the potential to improve domestic supply capabilities [84][85]. - Under - weighted sectors by funds: The "Action Plan for Promoting the High - Quality Development of Public Offering Funds" may have a profound impact on fund industry allocation. Some under - weighted sectors by funds are worthy of attention in the medium - to - long - term, including banks, non - bank finance, public utilities, and transportation, but short - term over - interpretation should be avoided [89]. 3.2 A - share Market: May Tend to a Defensive Style in June - Based on the combination of "economic reality" and "market sentiment", the market can be divided into four styles: balanced, pro - cyclical, defensive, and theme - growth and independent prosperity [98]. - In June, the economic reality or economic expectation is less likely to be "strong" in the short - term, and the market sentiment is expected to be weak. Therefore, the market style in June may tend to a defensive style [103][109]. - In a defensive style, attention should be paid to stable or high - dividend industries, such as public utilities, coal, and some sub - sectors [114]. - The five - dimensional industry comparison framework is used to comprehensively analyze and judge industry stock price performance. In May, under the assumption of a decline in market sentiment, the industry grouping effect was good, and the first - group industries achieved excess returns [119][123]. 3.3 Hong Kong Stock Market: Focus on Internet and Consumption Directions In May, the Hong Kong stock market rose, with a significant narrowing of the inflow of southbound funds but a relatively high trading proportion. Attention should be paid to the US restrictions on Chinese concept stocks listed in the US and investment in China. It is recommended to focus on the Internet, automobile, and service consumption directions in the Hong Kong stock market [3].

Group 1: Company Highlights - Reap Bio is highlighted as a leading company in the animal healthcare sector, specifically known for its poultry vaccine with the highest market share in China. The company is also expanding into pet medication, capitalizing on the growing pet economy [3]. - The stock has a target price increase of 44.76%, suggesting a potential rise from 100 to 145 [1]. - The company currently has a price-to-earnings ratio of 58, which is above the industry average of 42, indicating caution for potential investors [3]. Group 2: Industry Trends - The solar energy sector is represented by Dike Co., which produces silver paste for photovoltaic cells. The company has recently achieved breakthroughs in N-type battery silver paste technology, with a projected increase in demand due to a 35% expected growth in global solar installations this year [3]. - Dike Co. has a target price increase of 34.66% and is expanding its production capacity to 1,200 tons to meet rising demand [3]. - The storage system integration sector is represented by Southern Power Technology, which has a target price increase of 21.53%. The company is involved in energy storage projects, particularly in Guangdong and Yunnan, with a focus on vanadium flow battery technology [4]. Group 3: Market Sentiment - Recent broker reports indicate a strong interest in the "household and personal goods" sector, with five stocks identified, likely influenced by the upcoming 618 shopping festival [4]. - The capital goods sector also shows promise, with four stocks focused on machinery and industrial equipment, reflecting optimism about manufacturing upgrades [4]. - It is noted that while broker target prices are optimistic, actual market performance may vary, emphasizing the importance of analyzing financial health indicators such as revenue growth, cash flow, and debt levels before making investment decisions [4].

Group 1 - The overall quality of companies waiting for listing on the Beijing Stock Exchange (BSE) is high, with an average net profit of 89.67 million yuan for 94 companies, significantly higher than the average of 42.11 million yuan for 266 listed companies [3][15][17] - The average subscription rate for companies that raised over 200 million yuan is 0.14%, compared to 0.06% for those that raised less than 200 million yuan, indicating a correlation between fundraising size and subscription success [14][21] - The expected new stock subscription yield for 2025 is estimated to be between 4.8% and 10.80%, based on various assumptions regarding market conditions and investor participation [20][21] Group 2 - The BSE 50 index experienced a decline of 3.68% this week, closing at 1370.04 points, following a previous high of 1500 points, indicating potential volatility in the market [4][25][29] - The overall price-to-earnings (PE) ratio for BSE A-shares has decreased to 48.45X, with 53.79% of companies having a PE ratio exceeding 45X, suggesting a high valuation environment [22][26][27] - The five major industries on the BSE, including high-end equipment and information technology, have varying PE ratios, with information technology at 92.82X, indicating sector-specific valuation disparities [32][34] Group 3 - The average first-day price increase for newly listed companies from January 1, 2024, to May 23, 2025, is 303.91%, with the highest recorded increase being 731.41% for Tongguan Mining [44] - The IPO review process is active, with two companies awaiting approval and two newly accepted for review, reflecting ongoing market activity [5][42] - The report highlights the importance of focusing on companies with stable performance and reasonable valuations, particularly those classified as "little giants" in their respective sectors [39][41]

Fundraising Overview - The company has been approved by the China Securities Regulatory Commission to issue no more than 64,299,200 new shares, of which 31,420,573 shares were actually issued at a price confirmed on September 5, 2022 [1] - The funds raised are managed in accordance with regulatory guidelines and the company's internal management system, with specific accounts opened at various banks for the purpose of fund storage and management [1][2] Fund Usage and Account Status - The company has established special accounts for the raised funds at several banks, including China Construction Bank and Minsheng Bank, for projects such as the production of inactivated vaccines and the expansion of biological product workshops [2] - As of the announcement date, the status of the fundraising accounts is active, with specific projects linked to each account [2] Project Completion and Fund Reallocation - The company has concluded certain fundraising projects, specifically the "inactivated vaccine production project" and the "product quality inspection workshop project," and has decided to permanently allocate the remaining funds to working capital [3] - Following the completion of these projects, the corresponding fundraising accounts will be closed, and the related storage agreements will be terminated [3]

Group 1 - The report emphasizes that the recent public fund regulations are a necessary result of long-term changes in China's capital market structure and economic structure [3] - The market style is shifting from low-volatility strategies to core assets, indicating a potential long-term decline in China's capital intensity [3][24] - In the short to medium term, the core asset style needs to recover, while in the long term, it reflects the cyclical bottoming of the economy [3][24] Group 2 - The report notes that the resilience of the US economy is weakening, with inflation structures continuing to adjust; April's CPI inflation year-on-year was 2.3%, while core CPI remained at 2.8% [8][11] - The US PPI inflation showed a month-on-month decline of -0.47% in April, with service PPI contributing significantly to this decline [9][12] - Retail sales in the US also showed weak growth, with a month-on-month increase of only 0.058% in April, indicating a drag on consumption [11][12] Group 3 - The report highlights the mutual reduction of trade barriers between China and the US, with both countries agreeing to cancel 91% of tariffs and establish a mechanism for ongoing economic negotiations [13][15] - The Hong Kong stock market saw a general increase, with the Hang Seng Index rising by 2.09% [16] - The report indicates a lack of clear main lines in the Hong Kong market, with sectors like security, NFT concepts, and building energy efficiency leading the gains [19][24] Group 4 - The report suggests that the growth style may continue to adjust due to a lack of event catalysts [3][24] - In terms of industry performance, financial and real estate sectors led the gains, while technology sectors faced declines [32][24] - The report also notes a divergence in foreign capital index futures holdings, with net short positions expanding in some indices [44]

Investment Rating - The report maintains a "Positive" outlook on the Agriculture, Forestry, Animal Husbandry, and Fishery industry [2] Core Insights - The overall revenue of the industry remains stable, with significant improvement in the profitability of the breeding chain. In 2024, the SW Agriculture, Forestry, Animal Husbandry, and Fishery industry achieved total operating revenue of CNY 12,411.05 billion, a year-on-year decline of 1.67%. The net profit attributable to shareholders was CNY 479.85 billion, marking a turnaround from losses in 2023. In Q1 2025, the industry achieved total operating revenue of CNY 2,907.39 billion, a year-on-year increase of 8.09%, with net profit attributable to shareholders reaching CNY 133.35 billion, a significant increase compared to the same period last year [4][17][22]. Summary by Sections 1. Agriculture, Forestry, Animal Husbandry, and Fishery Industry - The industry shows overall stable revenue with a significant improvement in profitability. The operating revenue for 2024 was CNY 12,411.05 billion, down 1.67% year-on-year, while the net profit was CNY 479.85 billion, indicating a recovery from losses in 2023. In Q1 2025, the revenue increased by 8.09% year-on-year to CNY 2,907.39 billion, with net profit rising significantly [4][17][22]. 2. Swine Industry - The profitability of the swine industry has improved significantly, with major companies like Muyuan Foods, Wens Foodstuff Group, and New Hope Liuhe reporting revenue growth of 24.43%, 16.64%, and -27.27% respectively in 2024. The net profit for these companies increased by 519.42%, 244.46%, and 90.50% respectively. In Q1 2025, the top five swine companies saw substantial net profit growth, with Shen Nong Group leading at 6510.85% [30][45]. 3. Animal Health - The animal health sector faced significant pressure, with many companies experiencing revenue declines in 2024. However, Q1 2025 showed signs of recovery, particularly in the chemical drug segment, driven by a rebound in prices of veterinary raw materials. The top three companies in revenue growth for Q1 2025 were Huisheng Biological, Jinhai Biological, and Ruipu Biological, with increases of 20.42%, 7.58%, and 5.97% respectively [49][50]. 4. Feed Industry - The feed industry experienced a decline in total production in 2024, with a 2.10% drop year-on-year. However, revenue began to recover in Q1 2025, with leading companies like Bangji Technology and Haida Group showing significant growth. The average gross profit per ton for major feed companies also improved, with Haida Group achieving a gross profit margin of 12.66% in Q1 2025 [62][65][68]. 5. Poultry Industry - The poultry sector showed varied performance across different categories. In 2024, the top three companies in revenue growth were Xiaoming Co., Lihua Co., and Xiangjia Co., with increases of 16.83%, 15.44%, and 8.06% respectively. The profitability of the poultry industry improved significantly, with Lihua Co. leading in net profit growth at 447.72% [76][78].

Core Viewpoint - The company has completed the repurchase and cancellation of 60,000 restricted stocks from one incentive object due to retirement, which represents 0.01% of the total share capital before the repurchase [1][7]. Summary by Relevant Sections Incentive Plan Details - The 2023 restricted stock incentive plan involved one incentive object, with a total of 60,000 shares repurchased at a price of 2.39 yuan per share, totaling 143,400 yuan [1][7]. - After the cancellation, the company's total share capital decreased from 771,694,398 shares to 771,634,398 shares [1][7]. Approval Procedures - The company has followed the necessary approval procedures for the 2023 restricted stock incentive plan, including independent opinions from the board and verification from the supervisory board [1][2][3]. Repurchase Reasons and Conditions - The repurchase was necessitated by the retirement of one incentive object, who no longer qualifies for the incentive plan, leading to the cancellation of their unvested shares [6][7]. - The repurchase price was adjusted to 2.39 yuan per share, in accordance with the company's regulations [6][7]. Impact on Company Structure - The repurchase of restricted stocks will not adversely affect the company's operational results or its compliance with listing conditions, and the stock incentive plan will continue to be executed as per regulations [8].

Investment Rating - The industry rating is "Recommended" [3] Core Insights - The report highlights the significant role of agricultural technology innovation in modernizing agriculture, emphasizing the importance of enhancing the innovation ecosystem and supporting agricultural self-sufficiency [11] - In the pig farming sector, the average price of pigs is currently fluctuating around 14.5-15 CNY/kg, with a slight decrease observed this week [12] - The report suggests that the commercialization of genetically modified crops will accelerate, which is expected to improve self-sufficiency in key varieties [11] Summary by Sections Planting Industry Chain - The Ministry of Agriculture and other departments have issued an implementation opinion to enhance the agricultural technology innovation system, focusing on eight key tasks [11] - Companies like Beidahuang and Su-Kun Agricultural Development are expected to benefit from these initiatives [11] Pig Farming - The average price of external three yuan pigs is 14.80 CNY/kg, with a week-on-week change of -0.05% [12] - The number of breeding sows is 40.39 million, showing a slight decrease of 0.66% [12] - The report recommends focusing on companies with significant cost improvements and high future output elasticity, such as Jingji Zhino, Muyuan Foods, and Wens Foodstuff [12] Key Company Recommendations - Recommended companies in the planting sector include Longping High-Tech, Denghai Seeds, and Qianyuan High-Tech [11] - In the pig farming sector, companies like Muyuan Foods, Wens Foodstuff, and Haida Group are highlighted for their potential benefits [12] - The report also mentions companies in the animal health sector, such as Jinhai Biological and Zhongmu Co., which are expected to gain from market trends [12]

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Investment Rating - The report maintains a positive outlook on the agricultural, forestry, animal husbandry, and fishery industry, highlighting significant profit recovery in 2024 and continued growth in 2025 [2][3]. Core Insights - The agricultural, forestry, animal husbandry, and fishery industry saw a substantial turnaround in 2024, with a total net profit of 39.648 billion yuan, a year-on-year increase of 694% [16][17]. - Key sub-sectors such as pig farming, poultry farming, and seed industry reported impressive profit growth rates of 321%, 261%, and 130% respectively in 2024 [2][16]. - The first quarter of 2025 continued to show strong performance, with a total net profit of 9.932 billion yuan, reflecting a year-on-year increase of 764% [20][21]. Summary by Sections 1. Overview of 2024 and Q1 2025 Performance - The agricultural, forestry, animal husbandry, and fishery sector achieved a net profit of 39.648 billion yuan in 2024, marking a significant recovery from losses in 2023 [16][17]. - In Q1 2025, the sector's net profit reached 9.932 billion yuan, continuing the positive trend from 2024 [20][21]. 2. Key Sub-Sector Performance 2.1 Pig Farming - The pig farming sector reported a total revenue of 387.9 billion yuan in 2024, with a net profit of 30.7 billion yuan, driven by rising pig prices and reduced costs [23][28]. - In Q1 2025, the sector maintained profitability with a net profit of 7.62 billion yuan, despite a slight decline in pig prices [40][45]. 2.2 Poultry Farming - The white-feathered chicken sector faced challenges with low demand and oversupply, resulting in a revenue of 31.69 billion yuan in 2024, while the yellow-feathered chicken sector saw a recovery in profitability [2][23]. - In Q1 2025, the poultry sector's net profit was 1.2 billion yuan, a significant increase compared to the previous year [2][20]. 2.3 Pet Food - The pet food industry experienced robust growth, with total revenue of 12.15 billion yuan in 2024, reflecting a year-on-year increase of 19.3% [2][3]. - In Q1 2025, the sector's revenue reached 3.09 billion yuan, continuing the upward trend [2][20]. 2.4 Feed Industry - The feed sector faced sales pressure but saw a recovery in gross margins, with total revenue of 156.62 billion yuan in 2024 [2][3]. - In Q1 2025, the feed industry reported a revenue of 35.63 billion yuan, indicating a positive growth trajectory [2][20]. 2.5 Animal Health - The animal health sector faced increased competition in 2024, leading to a decline in profitability, but showed signs of recovery in Q1 2025 with improved sales [2][4]. - The sector's revenue in 2024 was 16.472 billion yuan, with a net profit of 1.162 billion yuan [2][4]. 2.6 Seed Industry - The seed industry reported a revenue of 14.86 billion yuan in 2024, with a net profit of 370 million yuan, affected by declining grain prices [2][4]. - In Q1 2025, the sector continued to face challenges, with a revenue of 2.43 billion yuan and a significant drop in net profit [2][4]. 3. Investment Analysis - The report suggests focusing on leading pig farming companies for long-term value, as the sector is currently at a historical low valuation [3][5]. - The pet food sector is highlighted as a long-term growth opportunity, driven by increasing pet ownership and spending [3][6]. - The feed industry is expected to see demand recovery, supported by improved livestock numbers and stable raw material prices [3][4].