Investment Rating - The report maintains a "Buy" rating for the agriculture, forestry, animal husbandry, and fishery industry [4] Core Views - The current pig price is on the rise, with the national average price for live pigs at 14.82 yuan/kg as of May 9, reflecting a week-on-week increase of 0.07% [28] - The average weight of pigs at slaughter has reached a new high since early 2023, indicating a potential turning point in inventory levels, which may lead to a phase of destocking in the industry [28][3] - The report highlights a significant differentiation in sales performance among listed companies, with some experiencing a decline in sales volume while others maintain growth [2][13] Summary by Sections Sales Volume - In April, the total number of pigs sold by 13 listed companies was 16.26 million heads, a decrease of 5.39% month-on-month but an increase of 39.69% year-on-year [2][14] - The average weight of slaughtered pigs has increased, with the average weight for April reported at 125.25 kg, up by 0.81 kg from the previous month [17][28] Sales Price - The report notes that the average selling price of pigs has remained stable, with most companies reporting price fluctuations within 3% [2][15] - The lowest average price was recorded at 14.32 yuan/kg by TianKang Biological, while the highest was 15.81 yuan/kg by DongRui Co [15][2] Inventory and Market Dynamics - The report indicates that the current inventory levels are high, and the demand has weakened post the May Day holiday, leading to increased pressure on pig sales in southern regions [28][3] - The report suggests that the industry may be entering a destocking phase as the willingness to sell fattened pigs decreases [28][3] Investment Recommendations - The report recommends focusing on companies such as Muyuan Foods, Wens Foodstuff Group, and Juxing Agriculture for the pig farming sector [3] - It also suggests monitoring companies in the feed and animal health sectors, such as Haida Group and Ruipu Biological, as their performance is expected to improve with the recovery of pig inventory levels [3]

Investment Rating - Industry Rating: Outperform the market (maintained rating) [12] Core Views - The pet sector continues to show high prosperity, driven by domestic substitution and consumption upgrades, leading to a dual increase in volume and price [1][2] - The industry is transitioning from "scale expansion" to "value creation," with leading companies shifting from "manufacturing" to "intelligent manufacturing" through formula innovation and precise demand capture [2][17] - The domestic pet food market remains strong, with a significant increase in sales and exports, indicating robust growth potential for domestic brands [2][17] Summary by Sections Pet Sector - The fifth TOPS Pet Expo in Shanghai showcased over 1,200 exhibitors and 8,000+ brands, reflecting strong growth momentum in the pet industry, with a 43% year-on-year increase in attendance [1][16] - Trends in pet food are shifting towards precision nutrition, with a focus on age-specific feeding and high-end production techniques [1][16] - Key recommended companies in the pet food sector include Guibao Pet, Zhongchong Co., Petty Co., and Lusi Co., with additional recommendations for pet medical and product companies [2][17] Swine Sector - As of May 10, the average price of live pigs was 14.90 yuan/kg, showing a slight decline, with production capacity continuing to grow [3][18] - The industry is facing a potential downturn in profitability due to weak demand and seasonal price declines [3][19] - Recommended companies include leading players such as Wens Foodstuffs and Muyuan Foods, with a focus on core assets [19] Poultry Sector - The white chicken segment is facing uncertainties in breeding imports, with a significant decline in the number of breeding stock updated [20][21] - The yellow chicken segment is expected to benefit from improved consumer demand, with stable prices observed [23] - Recommended companies include Shengnong Development and Lihua Co. for white chicken, and Wens Foodstuffs for yellow chicken [22][23] Planting Sector - The government emphasizes agricultural technology innovation and self-sufficiency in food security, with a focus on biological breeding [25][26] - Recommended companies in the seed sector include Longping High-Tech and Dabeinong, with additional focus on agricultural water-saving technologies [25][26] Feed and Animal Health Sector - Hai Da Group is highlighted for its market share growth and consistent performance in the feed sector [27] - The animal health sector is seeing new opportunities in pet health products, with recommended companies including KQ Bio and Zhongmu Co. [28]

Investment Rating - The investment rating for the agriculture, forestry, animal husbandry, and fishery industry is "Positive" (maintained) [1] Core Insights - Short-term consumption weakness has led to a slight decline in pig prices, but high prices for piglets and sows indicate optimistic expectations for the future [4][6] - The pig farming sector shows low valuation opportunities, while the pet sector continues to strengthen the logic of domestic brand rise [7][25] - The overall agricultural index underperformed the market by 0.93 percentage points during the week [29] Summary by Sections Weekly Observation - After the May Day holiday, consumer support was insufficient, leading to a slight decline in national pig prices. As of May 9, the average selling price of live pigs was 14.79 yuan/kg, down 0.02 yuan/kg week-on-week, a decrease of 0.14% [4][15] - The average daily slaughter volume of sample enterprises was 148,800 pigs, a decrease of 780 pigs from the previous week [4][15] Weekly Viewpoint - The pig sector shows low valuation opportunities, with the supply side not yet recovering to the levels of the same period in 2023. The demand side is supported by macro policies driving consumption recovery [25] - Recommended stocks include Muyuan Foods, Wens Foodstuff Group, Juxing Agriculture, Huadong Food, and Tiankang Biological [7][25] Market Performance (May 5-9) - The agricultural index rose by 0.99%, underperforming the market by 0.93 percentage points, with the fishery sector leading the gains [29][32] - Notable stock performances included *ST Jiawo (+13.47%), Guotou Zhonglu (+12.05%), and Xuelong Biological (+11.04%) [29][35] Price Tracking (May 5-9) - As of May 9, the national average price for live pigs was 14.82 yuan/kg, down 0.02 yuan/kg from the previous week. The average price for piglets was 36.87 yuan/kg, also down 0.01 yuan/kg [41] - The average profit for self-bred pigs was 84.33 yuan/head, a decrease of 0.72 yuan/head week-on-week [41] Key News (May 5-9) - Seven departments jointly issued an implementation opinion to enhance the overall effectiveness of the agricultural science and technology innovation system [36]

行业报告 | 行业研究周报 农林牧渔 证券研究报告 2025 年第 19 周周报：它博会归来，如何看宠物经济发展新趋势？ 1、宠物板块：高景气延续，国产替代与消费升级共筑量价双升 1）它博会看点：①今年关注度再上一层。第五届 TOPS 它博会于本周在上海国家会展中心开幕，展会以超 10 万平展览面积、1200 余家展商、8000+ 品牌缔造行业盛况，折射宠物赛道强劲增长动能。展会首日观众数同比激增 43%，创历史新高，核心数据验证行业扩容。②产品和工艺趋势变化：宠 物主粮精细化趋势显著，分龄分阶喂养成为核心升级方向：幼年期主打高蛋白、原生营养（麦富迪奶弗羊奶肉主粮系列），老年期聚焦肠胃调理、关节 养护（麦富迪老年犬粮）；工艺革新驱动高端化：低温烘焙成军备竞赛焦点（领先烘焙鲜肉猫粮、弗列加特鲜肉烘焙粮），鲜粮/湿粮赛道崛起（ZEAL 新西兰进口主食罐），国产技术迭代创新，行业从"粗放供给"迈向"精准营养+体验升级"新周期；③部分参展公司亮点：外资品牌如皇家、渴望、 爱肯拿，国产头部品牌如麦富迪、鲜朗、蓝氏，以及国产宠物用品公司天元宠物等齐聚展会，其中国产品牌表现较为亮眼——麦富迪它博会以"超级 工厂+天性数据研 ...

Investment Rating - The investment rating for the agriculture, forestry, animal husbandry, and fishery industry is "Positive" (maintained) [1] Core Insights - Short-term consumption weakness has led to a slight decline in pig prices, but high prices for piglets and sows indicate optimistic expectations for the future [4][6] - The pig farming sector shows low valuation opportunities, while the pet sector continues to strengthen the logic of domestic brand rise [7][25] - The overall agricultural index underperformed the market by 0.93 percentage points during the week [29] Summary by Sections Weekly Observation - After the May Day holiday, consumer support was insufficient, leading to a slight decline in national pig prices. As of May 9, the average selling price of pigs was 14.79 yuan/kg, down 0.02 yuan/kg week-on-week, reflecting a 0.14% decrease [4][15] - The average daily slaughter volume of sample enterprises was 148,800 pigs, a decrease of 780 pigs from the previous week [4][15] Weekly Viewpoint - The pig sector shows low valuation opportunities, with the supply side not yet recovering to the levels of the same period in 2023. The demand side is supported by macro policies that boost consumption recovery [25] - Recommended stocks include Muyuan Foods, Wens Foodstuff Group, Juxing Agriculture, Huadong Food, and Tiankang Biological [7][25] Market Performance (May 5-9) - The agricultural index rose by 0.99%, underperforming the market by 0.93 percentage points, with the fishery sector leading the gains [29][32] - Notable stock performances included *ST Jiawo (+13.47%), Guotou Zhonglu (+12.05%), and Xuelong Biological (+11.04%) [29][35] Price Tracking (May 5-9) - As of May 9, the national average price for pigs was 14.82 yuan/kg, down 0.02 yuan/kg from the previous week. The average price for piglets was 36.87 yuan/kg, also down 0.01 yuan/kg [41] - The average profit for self-bred pigs was 84.33 yuan/head, a decrease of 0.72 yuan/head week-on-week [41] Key News (May 5-9) - Seven departments jointly issued an implementation opinion to enhance the overall effectiveness of the agricultural science and technology innovation system, emphasizing the importance of technological innovation in agricultural modernization [36][37]

Investment Rating - The report maintains an "Overweight" rating for the agriculture, forestry, animal husbandry, and fishery industry [50] Core Insights - The report indicates that the breeding capacity of sows is expected to continue to decrease, with further potential for reduction in the future. The current valuation of the pig farming sector is at historical lows, presenting opportunities for low-position investments based on capacity reduction expectations [50] - In the poultry farming sector, the impact of avian influenza has limited the introduction of breeding stock for white feather chickens, leading to expectations of capacity reduction. Attention is drawn to leading companies in high-quality white feather chicken farming, while yellow feather chicken farming is expected to see profit improvements due to declining breeding costs [50] - In the feed sector, raw material cost pressures are expected to ease, and the concentration of leading companies is likely to continue to increase [50] - In the seed industry, trade frictions highlight food security concerns, and the commercialization of genetically modified organisms is progressing, with a focus on leading companies with research and development advantages [50] - The domestic pet market is expanding rapidly, with a focus on leading companies that cater to domestic demand [50] Industry Performance Review - The SW agriculture, forestry, animal husbandry, and fishery industry underperformed the CSI 300 index, with an increase of 0.32% from April 25 to May 8, 2025, lagging behind the index by approximately 1.49 percentage points [16] - Among the sub-sectors, only feed and breeding recorded negative returns, down 0.08% and 1.02% respectively, while animal health, fishery, planting, and agricultural product processing saw positive returns of 5%, 2.19%, 2.08%, and 2% respectively [17][18] - Approximately 72% of stocks in the industry recorded positive returns during the same period [18] - As of May 8, 2025, the overall price-to-book (PB) ratio of the SW agriculture, forestry, animal husbandry, and fishery industry index was about 2.58 times, slightly recovering over the past two weeks, and remains at 57.2% of the historical valuation center since 2006, indicating a historical low [22] Key Industry Data - **Pig Farming**: The average price of external three yuan pigs decreased slightly from 14.99 yuan/kg to 14.90 yuan/kg between April 25 and May 8, 2025. The breeding sow inventory reached 40.39 million heads at the end of March 2025, a decrease of 0.66% month-on-month but an increase of 1.2% year-on-year, indicating a normal holding level of 103.6% [26] - **Cost**: As of May 8, 2025, the spot price of corn was 2360.98 yuan/ton, showing a slight increase, while the spot price of soybean meal was 3300 yuan/ton, showing a slight decrease [28] - **Profitability**: As of May 9, 2025, the profit from self-breeding and self-raising pigs was 84.33 yuan/head, slightly down from the previous week, while the profit from purchasing piglets was 58.46 yuan/head, slightly up from the previous week [31] - **Poultry Farming**: The average price of broiler chicks in major production areas was 2.91 yuan/chick, showing a slight increase, while the average price of white feather broilers was 7.45 yuan/kg, showing a slight decrease, with a profit of -0.1 yuan/chick [33][36] - **Aquaculture**: The average wholesale price of crucian carp was 20.68 yuan/kg, and for carp, it was 14.29 yuan/kg, remaining stable over the past two weeks [38]

Group 1: Seed Industry Segment - The company's market share for the traits corresponding to actual planting area is approximately 60% in 2024, with expectations to further increase in 2025 [2] - The company is the only domestic enterprise with formal planting licenses in Brazil, Argentina, and Uruguay, currently implementing the "Technology Export, Grain Import" strategy [3] - The total area for soybean planting in China is around 15 million hectares, requiring approximately 500,000 hectares for seed production [4] Group 2: Pig Farming Segment - In 2024, the total number of pigs slaughtered by the company (including subsidiaries) was 6.405 million, representing a year-on-year growth of 5.9% [6] - The complete cost of fattening pigs as of March 2025 is 12.9 CNY/kg, with a target for further cost reduction [7] Group 3: Feed Segment - The company has significant technical reserves in low-protein diets and can fully replace soybean meal with other protein sources when prices are high [8] - The company is exploring regional industrial chain collaboration to maximize overall efficiency and has established a comprehensive management and supply chain platform [8] Group 4: Other Aspects - The company emphasizes operational management and market value maintenance, implementing measures such as executive stock purchases and profit distribution to share growth dividends with investors [10] - The company aims to be a global leader by 2035, focusing on technological innovation in agricultural development [10] - Sales and management expenses showed a significant decline in 2024, with sales expenses down by 11.31% and management expenses down by 8.46% [11]

Core Viewpoint - The 2024 Annual General Meeting of He Feng Food Co., Ltd. will discuss various proposals, including the execution of related party transactions and the company's financial performance, highlighting a significant profit increase and strategic governance improvements [1][4][13]. Group 1: Company Performance - The company achieved a net profit of 342 million yuan in 2024, a year-on-year increase of 174.93%, marking a turnaround from a loss [4][13]. - The total revenue for 2024 was 32.55 billion yuan, a decrease of 9.52% compared to the previous year [13][14]. - The company's total assets at the end of the reporting period were 14.88 billion yuan, a slight decrease of 0.37% from the previous year [13][14]. Group 2: Governance and Management - The board of directors has been recognized for its effective governance, receiving an A-level rating for information disclosure for seven consecutive years [5]. - The company completed a board restructuring and appointed a new management team, enhancing governance and operational efficiency [5][9]. - The company executed two rounds of share repurchase plans, spending 287 million yuan to buy back 39.99 million shares, reflecting management's confidence in the company's value [5][9]. Group 3: Related Party Transactions - The company reported that its related party transactions in 2024 were necessary for normal operations, with pricing based on market rates, ensuring compliance with legal and regulatory standards [17][18]. - The total expected amount for related party transactions in 2025 is projected to be 159.4 million yuan, with various categories of transactions detailed [17][18]. Group 4: Future Outlook - The company aims to strengthen its feed business, enhance the meat poultry industry, and improve cash flow and risk management in the coming years [9][12].

Group 1: Financial Performance - In 2024, the company achieved operating revenue of 1,016.95 million yuan, with a net profit of -28.71 million yuan [1] - In Q1 2025, the company reported operating revenue of 286.19 million yuan, with a net profit of -5.12 million yuan [1] - The overall performance of the feed industry in 2024 showed a total output value of 1,262.08 billion yuan, a decrease of 10% compared to the previous year [3] Group 2: Market Trends and Challenges - The company noted a 30.49% decline in sales revenue from pig feed in 2024, while sales revenue from egg-laying chicken feed increased by 19.1% [2] - The feed industry is expected to accelerate transformation under four major trends: centralization, technological advancement, greening, and globalization [2] - The company plans to enhance product value through customized feed products and comprehensive technical services to improve customer satisfaction and loyalty [1] Group 3: Strategic Initiatives - The company aims to diversify its product structure and strengthen its ability to withstand cyclical risks by focusing on egg-laying feed development [2] - Future plans for share repurchase or increase will be disclosed in accordance with relevant regulations [1] - The company is committed to transitioning from a single advantage to a multi-category feed service provider [2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company reported a net profit attributable to shareholders of 346 million yuan in 2024, with a significant improvement in profitability in 2025 Q1, achieving a net profit of 134 million yuan [4] - The company expects to reach a pig output of 8 million heads in 2025, with the complete cost dropping to 12.9 yuan per kilogram [4][5] Financial Performance Summary - In 2024, the company achieved revenue of 28.77 billion yuan, a year-on-year decrease of 13.9%, while the net profit attributable to shareholders was 346 million yuan, indicating a turnaround from losses [4] - For 2025 Q1, the company reported revenue of 6.865 billion yuan, a year-on-year increase of 2.4%, and a net profit of 134 million yuan, also indicating a turnaround [4] - The company's debt-to-asset ratio decreased to 64.4% by the end of March 2025, down 1.87 percentage points from the end of 2023 [4] Production and Cost Analysis - The company’s pig output in 2024 was 6.4046 million heads, a year-on-year increase of 5.9%, with an average profit of 175 yuan per head [5] - The complete cost of pig farming has been decreasing, falling below 14 yuan per kilogram in December 2024 and further down to 12.9 yuan per kilogram by March 2025 [5] - The company has implemented various measures to improve production efficiency, including breed improvement and enhanced biosecurity measures, leading to better survival rates for piglets [5] Future Projections - The company forecasts pig output to reach 8 million heads in 2025, 8.8 million heads in 2026, and 9.68 million heads in 2027, with corresponding revenues of 29.26 billion yuan, 30.14 billion yuan, and 30.91 billion yuan [7] - The projected net profit for 2025 is 755 million yuan, with significant growth expected in subsequent years [7] Key Financial Metrics - The company’s projected revenue for 2025 is 29.26 billion yuan, with a year-on-year growth of 1.7% [9] - The net profit attributable to shareholders is expected to be 755 million yuan in 2025, reflecting a year-on-year increase of 118.4% [9] - The company’s P/E ratio is projected to decrease from 54.13 in 2024 to 23.46 in 2025, indicating improved valuation metrics [11]