Core Viewpoint - The company reported a revenue increase of 5.9% year-on-year to 49.852 billion yuan for the first half of 2025, with a significant rise in net profit attributable to shareholders by 159.1% to 3.475 billion yuan, indicating strong performance despite challenges in the second quarter [1] Revenue and Profit Analysis - In the first half of 2025, the company's revenue from pig farming increased by 16.26% to 32.735 billion yuan, with pig sales volume rising by 15.6% to 16.6166 million heads, although the average selling price of pigs decreased by 2.56% to 14.93 yuan per kilogram [2] - The chicken farming segment faced challenges, with revenue declining by 9.29% to 15.127 billion yuan, despite a sales volume increase of 9.16% to 600 million birds, and the average selling price dropping by 18.43% to 10.84 yuan per kilogram, resulting in a loss of 1.2 billion yuan in the chicken business [2] Production Efficiency and Financial Health - The company achieved cost control with the comprehensive cost of pig farming reduced to 12.4 yuan per kilogram and chicken farming cost down to 11.2 yuan per kilogram, maintaining a leading position in the industry [3] - Key production metrics improved, with piglet production costs at 280 yuan per head and a piglet survival rate of 93% in June, while chicken farming maintained a high market rate of 95% [3] - The company's asset-liability ratio was 50.57% at the end of the first half of 2025, a decrease of 2.8 percentage points from the end of 2024, indicating a stable financial position [4] Industry Trends and Growth Potential - The company is positioned to benefit from a new paradigm in the Chinese pig industry characterized by reduced price volatility and increased profitability, with an estimated profit of approximately 300 yuan per pig [4] - The company aims to achieve a pig output target of 33 to 35 million heads in 2025, supported by a 6.1% increase in breeding stock compared to the end of 2024 [4] Dividend and Valuation Outlook - The company has a strong dividend potential, with an average payout ratio of 42% from 2015 to 2024, higher than the industry average [4] - The current stock price corresponds to a price-to-earnings ratio of 12 and 10 for 2025 and 2026, respectively, with a target price of 25 yuan, indicating a potential upside of 38% [5]

- The report tracks the progress of mid-year financial disclosures for A-shares, noting that as of August 27, 2025, the disclosure rate is approximately 73%, which is higher than the same period from 2022 to 2024[1][3][11] - Industries with high net profit growth include agricultural products, media and internet, metal materials and mining, comprehensive finance, and electronics[1][5][17] - Secondary industries with high net profit growth include poultry farming, fiberglass and products, diversified consumer goods trade, entertainment, and rare earth magnetic materials[1][5][17] - The highest disclosure rates among primary industries are building products (85%), coal (84%), testing services (83%), oil and petrochemicals (81%), and metal materials and mining (81%)[4][15] - The lowest disclosure rates among primary industries are real estate (58%), construction engineering (57%), insurance (50%), comprehensive finance (46%), and banking (38%)[4][15]

Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 21.42 [1][4]. Core Views - The company reported a revenue of RMB 49.9 billion for H1 2025, a year-on-year increase of 5.92%, and a net profit of RMB 3.475 billion, up 159% year-on-year. However, Q2 showed a revenue of RMB 25.5 billion, which was a 1.20% increase year-on-year but a 26.39% decrease quarter-on-quarter [1][2]. - The company has seen a continuous decline in pig farming costs, with estimated Q2 costs dropping to approximately RMB 12.4 per kilogram, leading to a significant profit advantage per head. The balance sheet is improving, although the chicken farming segment is facing losses due to a depressed market [1][2][3]. - The report suggests that the pig farming industry is beginning to show signs of "anti-involution," indicating a shift towards higher quality competition, which could benefit low-cost, high-quality producers like the company [3]. Summary by Sections Financial Performance - In H1 2025, the company achieved RMB 32.7 billion in revenue from pig farming, a 16% increase year-on-year, driven by a 16% rise in sales volume to 16.62 million heads. The average profit per head for the first half is estimated to be around RMB 300 [2]. - The chicken farming segment generated RMB 15.1 billion in revenue, a 9% decrease year-on-year, with a sales volume of 598 million birds, reflecting an 18% drop in average selling price due to a relaxed supply situation [2]. Industry Outlook - The report highlights that the Ministry of Agriculture's monitoring indicates a reduction in the number of breeding sows, suggesting a potential stabilization in pig prices and improved profitability for the industry in the long term [3]. - The company is expected to benefit from its cost advantages and improved balance sheet, which may enhance its dividend-paying capacity as capital expenditures decrease [3]. Profit Forecast and Valuation - The profit forecast remains unchanged, with expected net profits of RMB 9.4 billion for 2025, RMB 9.4 billion for 2026, and RMB 19.4 billion for 2027. The company is valued at a price-to-book ratio of 2.97x for 2025 [4][8].

Group 1 - The core viewpoint of the articles indicates that Wens Foodstuff Group (温氏股份) has experienced a mixed performance in its business segments during the first half of 2025, with strong profits in pig farming but losses in poultry operations [1][2] - In the first half of 2025, the company achieved a net profit of approximately 3.5 billion yuan, with pig farming contributing about 5.1 billion yuan in profit, while chicken farming incurred a loss of about 1.2 billion yuan [1] - The average comprehensive cost of pig farming was reported at 6.2 yuan per jin, with nearly 70% of the regions having costs below 6.3 yuan per jin [1] Group 2 - The poultry market has been weak, leading to losses in the chicken business; however, there is optimism for recovery in the second half of the year as traditional consumption peaks and prices for Chinese native chickens have risen to 6.4 yuan per jin [2] - The company aims to maintain an annual growth rate of 5%-10% in its chicken business, focusing on expanding fresh meat processing and cooked food segments [2] - As of the end of June, the company's debt ratio decreased to 50.6%, with plans to further reduce it to around 45% to enhance risk management capabilities [2] - The fixed asset investment plan for 2025 is set at approximately 5 billion yuan, primarily directed towards the construction and upgrading of pig farming facilities, breeding farms, and slaughterhouses [2]

6 证券研究报告 点评报告 2025 年 8 月 28 日 晨会纪要 第一创业证券研究所 分析师：刘笑瑜 证书编号： S1080525070001 电话：0755-23838239 从行业上看，1-7 月同比增速靠前的行业为：铁路、船舶、航空航天和其他运输 设备制造业、有色金属冶炼及压延制造业和电气机械、器材制造业；1-7 月同比 增速靠后的行业为：煤炭开采和洗选业、钢铁业、家具制造业、纺织服装服饰业、 造纸及纸制品业。7 月同比增速明显改善的行业包括：计算机、通讯和其它电子 设备制造业、通用设备制造业、家具制造业、纺织业和钢铁业；7 月同比增速明 显下滑的行业包括：化纤业、汽车制造业。具体各行业利润同比增速如下表：上 游分化、下游较差而中游较好。 请务必阅读正文后免责条款部分 邮箱：liuxiaoyu@fcsc.com 核[心Ta观bl点e_：Summary] 一、宏观经济组： 事件： 8 月 27 日（星期三）国家统计局公布 7 月中国工业企业利润数据。 评论： 1-7 月份，全国规模以上工业企业实现利润总额 40203 亿元，同比下降 1.7%，比 1-6 月回升 0.1 个百分点。7 月份，规模以上工 ...

Core Viewpoint - In the first half of 2025, the company reported a net profit of approximately 3.5 billion yuan, with significant contributions from its pig farming business, while the chicken and waterfowl sectors faced losses [1][2]. Production and Operational Performance - The pig farming business generated a profit of about 5.1 billion yuan, while the chicken business incurred a loss of around 1.2 billion yuan, including a 500 million yuan inventory impairment [1] - In the second quarter, the company achieved a net profit of approximately 1.5 billion yuan, with the pig farming sector contributing about 2.6 billion yuan and the chicken sector facing a loss of 900 million yuan [1] - From January to July, the company sold 21.1 million pigs and 709 million chickens, with a fresh product sales ratio of 17% for chickens [1] Cost Management and Efficiency - The average cost of pig farming was reduced to 6.2 yuan per jin in the first half of 2025, with a further decrease to 6.1 yuan per jin in July [2][4] - The company implemented various cost-reduction measures, including optimizing feed formulations and enhancing disease prevention efforts [4] Financial Health - The company's asset-liability ratio decreased to 50.6% by the end of June 2025, down 2.8% from the end of the previous year, with a target to further reduce it to around 45% [3][5] - The company plans to invest approximately 5 billion yuan in fixed assets in 2025, with significant allocations for both pig and chicken businesses [5] Future Outlook - The chicken business is expected to recover profitability due to seasonal demand, with a positive outlook for the second half of the year [4] - The company aims for an annual growth rate of 5% to 10% by expanding its fresh product and cooked food segments [4]

Financial Performance - The company's total revenue for the first half of 2025 is 49.875 billion yuan [1] - The net profit attributable to shareholders is 3.475 billion yuan [1] - The net cash inflow from operating activities is 6.465 billion yuan [1] - The diluted earnings per share is 0.53 yuan [5] Financial Ratios - The latest debt-to-asset ratio is 50.57% [4] - The latest gross profit margin is 13.76%, a decrease of 0.52 percentage points from the previous quarter [4] - The latest return on equity (ROE) is 8.25% [4] - The total asset turnover ratio is 0.54 times [6] - The inventory turnover ratio is 2.21 times [6] Shareholder Information - The number of shareholders is 91,000 [7] - The top ten shareholders hold 1.643 billion shares, accounting for 24.69% of the total share capital [7]

Group 1: Financial Performance - In the first half of 2025, the company achieved a net profit of approximately 35 billion CNY, with pig farming contributing about 51 billion CNY in profit and chicken farming incurring a loss of about 12 billion CNY [2][3] - The company's net profit for Q1 was 21 billion CNY, while Q2 net profit was approximately 15 billion CNY, with pig farming profit in Q2 around 26 billion CNY [2][3] Group 2: Production and Sales - From January to July 2025, the company sold a total of 21.1 million pigs, including 19.26 million in fresh and live pigs and 1.83 million piglets; chicken sales reached 709 million, with 123 million being fresh sales [4] - The company maintained a pig market release rate of approximately 93% in June, with a feed-to-meat ratio of 2.55 [6] Group 3: Cost Management - The comprehensive cost of pig farming decreased to 6.2 CNY per jin, a year-on-year reduction of about 1.2 CNY per jin, with market factors affecting approximately 40% and non-market factors about 60% [6] - The average comprehensive cost of pig farming across regions was 6.2 CNY per jin, with a variance of less than 0.2 CNY per jin among three pig farming divisions [12] Group 4: Debt and Investment - As of June 2025, the company's debt-to-asset ratio decreased to 50.6%, down 2.8% from the end of the previous year, with a target to reduce it to around 45% [9][22] - The company planned a fixed asset investment of approximately 5 billion CNY for 2025, with 2 billion CNY already invested in the first half, including 1.4 billion CNY in pig farming [23][24] Group 5: Strategic Initiatives - The company is restructuring its poultry division into three business units to enhance management efficiency and promote healthy competition [10] - A new brand strategy was introduced, adding "Wens Food" and "Wens Ingredients" to better segment the business [10]

Core Viewpoint - Huadong Co., Ltd. (002840) reported a revenue of 4.244 billion yuan for the first half of 2025, reflecting a year-on-year increase of 1.89%, while the net profit attributable to shareholders reached 76.1731 million yuan, a significant rise of 163.98% [1] Financial Performance - The total revenue for Q2 2025 was 2.165 billion yuan, showing a slight decline of 0.19% year-on-year, while the net profit for the same quarter was 41.9689 million yuan, up by 9.75% [1] - The gross profit margin improved to 7.27%, an increase of 110.7% year-on-year, and the net profit margin reached 1.91%, up by 163.5% [1] - The total of selling, administrative, and financial expenses was 227 million yuan, accounting for 5.35% of revenue, a decrease of 17.78% year-on-year [1] - Earnings per share (EPS) increased to 0.11 yuan, a rise of 155.0% year-on-year, while operating cash flow per share reached 0.55 yuan, up by 259.67% [1] Balance Sheet Highlights - Cash and cash equivalents rose to 1.495 billion yuan, marking a 128.0% increase year-on-year [1] - Accounts receivable increased significantly by 104.8% year-on-year, totaling 967.387 million yuan [1] - Interest-bearing liabilities decreased to 4.149 billion yuan, down by 18.38% [1] Business Model and Performance Evaluation - The company's return on invested capital (ROIC) was 3.88% last year, indicating weak capital returns, with a historical median ROIC of 8.34% since its listing [3] - The business model relies heavily on capital expenditure and marketing, necessitating careful evaluation of capital projects and potential funding pressures [3] Cash Flow and Debt Analysis - The cash flow situation is concerning, with cash and cash equivalents to current liabilities ratio at 52.64%, and the average operating cash flow to current liabilities ratio at 13.2% over the past three years [4] - The interest-bearing debt ratio stands at 38.2%, with a current ratio of only 0.9, indicating potential liquidity issues [4] Market Expectations - Analysts project a net profit of 228 million yuan for 2025, with an average EPS forecast of 0.28 yuan [5] Fund Holdings - Notable funds holding Huadong Co., Ltd. include Huaxia Panyi One-Year Open Mixed Fund, which has recently increased its position [6]

Group 1: Financial Performance - The company reported a revenue of 49.852 billion yuan for the first half of 2025, representing a year-on-year increase of 5.91% [1] - The net profit attributable to shareholders was 3.475 billion yuan, showing a significant year-on-year growth of 159.12% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 3.256 billion yuan, up 137.63% year-on-year [1] - Basic earnings per share were 0.5252 yuan [1] Group 2: Pork Sales - The company sold 16.6166 million head of live pigs (including both live and fresh products), which is a year-on-year increase of 15.6% [1] - The average selling price of live pigs was 14.93 yuan per kilogram, a decrease of 2.56% year-on-year [1] - The sales revenue from pork products reached 32.735 billion yuan, reflecting a year-on-year increase of 16.26% [1] - The increase in pork sales revenue was primarily driven by the rise in sales volume [1] - The company experienced a significant reduction in breeding costs due to improved management and lower feed raw material prices, leading to a substantial increase in profits from pig farming [1] Group 3: Chicken Sales - The company sold 598 million live chickens (including live, fresh, and cooked products), marking a year-on-year growth of 9.16% [2] - The average selling price of live chickens was 10.84 yuan per kilogram, which represents a year-on-year decline of 18.43% [2] - The sales revenue from chicken products was 15.127 billion yuan, a decrease of 9.29% year-on-year, primarily due to the drop in selling prices [2]