Group 1 - The company Xiangjia Co., Ltd. (002982) reported a total of 4.298 million live poultry sold in June 2025, representing a year-on-year decrease of 4.56% and a month-on-month increase of 3.93% [1] - The sales revenue for the same period was 68.1782 million yuan, showing a year-on-year decline of 31.64% and a month-on-month decrease of 6.43% [1] - The average selling price was 8.03 yuan per kilogram, which reflects a year-on-year drop of 26.16% and a month-on-month decline of 11.45% [1]

Core Viewpoint - The report from Guohai Securities initiates a "Buy" rating for Dekang Agriculture and Animal Husbandry (02419.HK) with a target price of HKD 154, highlighting the company's strong position in the livestock industry and effective cost management [1] Group 1 - Dekang Agriculture and Animal Husbandry is recognized as a leading player in China's full industry chain of livestock and poultry farming [1] - The company is experiencing a dual boost in its breeding cycle due to the reduction in pig production capacity and a turning point in chicken prices [1] - The report emphasizes the company's excellent cost management capabilities as a significant advantage in the market [1]

Group 1: Childcare Subsidy Policy - The childcare subsidy system in China has formed a progressive framework of "childcare support - economic relief - cash subsidies," aimed at reducing care costs and enhancing fertility willingness, especially among low-income groups [1][27] - The government has shifted fiscal spending from investment to improving people's livelihoods, emphasizing the need to optimize the fiscal expenditure structure to strengthen basic livelihood financial support [1][28] - The "localized" nature of subsidies is seen as a refined governance experiment under tight fiscal conditions, serving as an important tool for current fiscal policy with a core consumption stimulation effect based on the "multiplier effect" [1][29] Group 2: Marine Economy and Technology - The marine economy is projected to exceed 10 trillion yuan in 2024, accounting for 7.8% of the national GDP, highlighting its significance as a growth driver [3] - The global regulatory framework for stablecoins is accelerating, with recent legislative developments in the US and Hong Kong, which may enhance the internationalization of the Renminbi [3] - Breakthroughs in brain-computer interface technology are paving the way for commercialization, with significant clinical trials indicating rapid advancements in the field [3] Group 3: Investment Opportunities in Maternal and Infant Products - The maternal and infant products market is expected to reach 4.68 trillion yuan by 2025, with a growth rate exceeding 7%, driven by increasing disposable income and consumption capabilities [8][36] - The early education and childcare market is anticipated to expand due to government support, with a focus on integrating medical and educational services [8] - The assisted reproductive services market is projected to grow to 49.6 billion yuan by 2023, benefiting from increased fertility willingness driven by childcare subsidies [8]

Group 1: Desert Tourism Development - The western regions of China are increasingly exploring new paths for desert tourism, transforming natural potential into economic potential, with ecological civilization taking root in deserts [5] - The Shahu Ecological Tourism Area in Ningxia is one of the first 5A-level scenic spots in China, showcasing a unique landscape that harmonizes desert and water elements [3][4] - The Shahu scenic area has invested over 100 million yuan to develop new tourism formats, attracting nearly 60,000 visitors in a single day after the opening of its night market [4] Group 2: Agricultural and Livestock Development - The Gobi Desert's dry climate is advantageous for livestock farming, as demonstrated by Ningxia Xiaoming Agricultural and Animal Husbandry Co., which has invested nearly 1.5 billion yuan in chicken farming in the region [6] - The Gobi's characteristics have also made it suitable for dairy farming, sheep breeding, and the cultivation of high-quality wine grapes, with the Helan Mountain area becoming a major wine production region [7] Group 3: Renewable Energy Integration - The "Agricultural-Photovoltaic Integration" project by Ningxia Baofeng Group has transformed previously barren land into productive areas, increasing vegetation coverage from less than 30% to 85% [9] - The project generates 1.7 billion kWh of green electricity annually, significantly reducing carbon emissions while providing economic support [9] - Major renewable energy projects, such as the Tianshan North Slope wind and solar base, are being developed to enhance energy output and contribute to national energy supply [10]

Investment Rating - The report assigns a "Buy" rating for the company with a target price of 154 HKD, indicating an upside potential of over 80% from the current price of 85.8 HKD [8]. Core Insights - The report highlights a new cycle logic in the pig farming industry, driven by supply-demand dynamics and policy interventions, which may lead to a phase of capacity reduction and recovery challenges [6][45]. - The company is positioned as a leading integrated livestock farming enterprise in China, focusing on pig and poultry farming, with a strong emphasis on cost management and innovative farming models [17][30]. Industry Overview - The pig farming sector is experiencing a supply surplus and weak demand, leading to a potential decline in pig prices and reduced profitability for farmers [1][44]. - The chicken market is expected to see a marginal recovery in prices in the second half of the year, driven by improving consumer demand and seasonal consumption patterns [2][56]. Company Overview - The company has developed a unique farming model that integrates traditional farming with innovative practices, allowing for rapid expansion and improved farmer collaboration [3][57]. - The pig farming segment has shown significant growth, with a projected output of 11 million pigs by 2025, contributing to an estimated market value of 33 billion CNY [6][30]. - The poultry segment has also seen a doubling of market share from 1.3% in 2018 to 2.6% in 2024, driven by a diversified product matrix and improved breeding techniques [4][30]. Business Segments - The pig farming business leverages a dual farming model, enhancing resource sharing and operational efficiency, which has resulted in a competitive cost structure [3][57]. - The chicken business focuses on breeding and product diversification, responding to market trends and consumer preferences, which is expected to support future price elasticity [4][56]. - The company's slaughtering operations are expanding, aligning with industry trends towards vertical integration and enhanced food processing capabilities [5][30].

Investment Rating - The industry is rated as "Buy" [6] Core Viewpoints - The pig farming sector is expected to see a recovery in prices due to seasonal demand and a slight increase in the number of breeding sows, indicating a potential long-term profit cycle [5][70] - The recent increase in pig prices is attributed to supply constraints caused by seasonal weather conditions and reduced slaughtering activities [24] - The overall agricultural sector has shown resilience, outperforming the market indices in recent weeks [15] Summary by Sections 1. Industry Performance - The agricultural sector index rose by 2.55% in the week ending July 4, outperforming the Shanghai Composite Index by 1.15% [15] - The pig farming sub-sector saw a price increase of 4.28% for live pigs, while the average weight of pigs at slaughter reached 128.64 kg, up 0.50 kg week-on-week [24] 2. Key Data Tracking - As of the end of May, the number of breeding sows was 40.42 million, a slight increase of 0.1% month-on-month and 1.2% year-on-year [1] - The average price for live pigs decreased to 14.92 yuan/kg in May, down 0.9% month-on-month and 5.4% year-on-year [1] - The average profit per pig for large-scale farms dropped to 49 yuan per head in May, down from 86 yuan in April [1] 3. Investment Recommendations - The report recommends focusing on the pig farming sector, highlighting companies such as Muyuan Foods, Wens Foodstuff Group, and Juxing Agriculture as key investment opportunities [5][70] - The feed and veterinary sectors are also expected to benefit from the recovery in pig stocks, with companies like Haida Group and Ruipu Biological Products suggested for consideration [5][70] - In the planting chain, the upward trend in grain prices presents investment opportunities in companies like Suqian Agricultural Development and Beidahuang Group [5][70]

Core Viewpoint - The Huizhou Ecological Environment Bureau has announced an adjustment to the livestock breeding prohibition zones in Huizhou County, aimed at optimizing the livestock breeding industry layout, controlling pollution, and promoting ecological protection and sustainable development of the livestock industry [1] Group 1: Prohibition Zones - The prohibition zones are categorized into four types: urban concentrated construction areas, drinking water source protection areas, nature reserves, and important riverbanks [1] - Urban concentrated construction areas are defined based on the "urban development boundary" from the Huizhou County land use planning, excluding small fragmented areas [2] - The drinking water source protection areas include 21 designated zones, which are classified into first and second-level protection areas [2][3] - Nature reserves include nine specific reserves, with both core and buffer zones included in the prohibition area [4] - Important riverbanks cover the management areas of various rivers within Huizhou County, extending 500 meters from the highest water level [4] Group 2: Implementation and Public Participation - The prohibition on constructing breeding farms or farms that discharge pollutants will be enforced, with the announcement effective for five years [5] - The public is invited to provide feedback on the draft announcement from July 3, 2025, to August 1, 2025, through various communication methods [5]

韦韬强调，要全面扎实开展畜禽养殖污染排查整治专项行动。一要全面排查，紧盯线索查，查清污 染源头和排污主体；有的放矢查，找准抓实最突出的问题、最薄弱的环节；明确责任查，实行"谁排 查、谁签字、谁审核、谁负责"的全过程责任追溯机制，倒逼责任和工作落实。二要突出重点，抓好40 个养殖大县国家级畜禽粪污资源化利用整县推进项目，提升畜禽粪污资源化利用能力，加大对漓江、九 洲江、南流江等重点流域养殖场污染防治设施运行检查，加强饮用水水源地保护区、天坑、溶洞、地下 河等禁养区、生态环境敏感区日常巡查和执法检查，坚决打击非法排污行为。三要分类施策，针对排查 出的养殖污染问题和隐患，深入分析研究，坚持实事求是，不搞"一刀切"，因地制宜、因场施策，采取 针对性整治措施，能改造达标的要抓紧改造，需关停整治的要坚决关停整治，必须搬迁的要下决心搬 迁，坚决消除养殖污染风险隐患。四要标本兼治，合理布局发展畜牧业，科学编制"十五五"畜牧业发展 规划，控规模、控总量、调结构，加强畜禽养殖粪污资源化利用新模式、新技术推广应用，实现规模 化、生态化、绿色化养殖，加快推动我区畜牧业绿色转型和高质量发展。 原标题： 扎实开展畜禽养殖污染排查整治专项 ...

Group 1 - The Jinan municipal government is actively promoting agricultural and rural consumption through various initiatives, including the "Action to Promote Agricultural and Rural Consumption" [1] - Jinan has planned and implemented 309 key agricultural projects with an annual investment of 13.86 billion yuan, focusing on stabilizing the production of staple food and enhancing supply capacity [1] - In the first quarter, the total output value of agriculture, forestry, animal husbandry, and fishery in Jinan reached 9.13 billion yuan, a year-on-year increase of 4.3% [1] Group 2 - Jinan is enhancing its agricultural brand system, creating a "1+15+N" agricultural brand matrix, and has authorized 140 enterprises and 420 products under the "Spring Water Family" public brand [2] - The city has organized 29 sales matching activities, involving over 530 agricultural operators, to facilitate local consumers' access to quality agricultural products [2] - Jinan is expanding its rural consumption scenarios by developing new rural tourism routes and organizing various cultural and agricultural events [2]

Core Viewpoint - Lihua Co., Ltd. announced a share reduction plan by its actual controller Cheng Lili and his concerted action partner, intending to reduce up to 25,118,000 shares, accounting for 3.00% of the total share capital, within three months starting from July 22, 2025 [1] Group 1: Share Reduction Announcement - The actual controller Cheng Lili and his concerted action partner, Pentium Animal Husbandry Technology Service Center, plan to reduce their holdings through centralized bidding or block trading [1] - The total shares held by Cheng Lili and Pentium Animal Husbandry amount to 427,630,501 shares, representing 51.07% of the company's total share capital [1] Group 2: Initial Public Offering and Fundraising - Lihua Co., Ltd. raised a total of RMB 1.212 billion from its initial public offering, with a net amount of RMB 1.150 billion intended for various integrated poultry and feed projects [2] - The company incurred issuance costs of RMB 61.568 million during its IPO, with underwriting and sponsorship fees amounting to RMB 36.347 million [3] - The total fundraising from the initial public offering and the 2022 private placement reached RMB 2.482 billion [4] Group 3: Dividend Announcement - On May 16, 2023, Lihua Co., Ltd. announced a dividend plan, distributing RMB 8 per 10 shares (pre-tax) and a bonus issue of 8 shares [3]