Investment Rating - The report maintains an "Accumulate" rating for the industry [5] Core Views - The pet industry shows strong growth trends on new content platforms like Douyin, with significant year-on-year increases in sales volume and revenue [15][17] - The report highlights the long-term growth potential of leading domestic brands in the pet sector [17] - In the pig farming sector, the average selling price of lean pigs is 14.53 CNY/kg, down 0.5% from the previous week, indicating a relatively low valuation [18][20] - The poultry sector sees a rise in white feather chicken prices to 7.48 CNY/kg, up 2% from last week, while chicken product prices remain stable [18][38] - The report emphasizes the potential for investment in transgenic varieties following their approval for commercialization [18] Summary by Sections Pet Industry - Douyin's sales in February 2025 reached 676 million CNY, a year-on-year increase of 39.96%, with sales volume at 15.317 million, up 69.95% [16] - The average order value decreased by 6.82%, while the number of associated stores and influencers increased significantly [16][17] - The report notes that good content is a key driver for growth in pet consumption on Douyin [17] Pig Farming - The average selling price of lean pigs is 14.53 CNY/kg, down 0.5% from last week [20] - The report suggests focusing on leading companies with cost advantages, such as Muyuan Foods and Wens Foodstuff [18] Poultry Farming - The average price of white feather chickens is 7.48 CNY/kg, up 2% from last week, while chicken product prices remain stable at 9 CNY/kg [18][38] - The report recommends monitoring seasonal price elasticity opportunities in yellow feather chicken production [18] Agricultural Products - The approval of transgenic varieties is expected to enhance the growth potential of industry companies [18] Feed and Vaccines - The report indicates that leading feed companies may replace smaller firms due to their procurement and scale advantages [18]

Core Viewpoint - The company reported a revenue of 3.136 billion yuan for 2024, a year-on-year decrease of 2.76%, and a net profit attributable to shareholders of 504 million yuan, down 6.84% year-on-year. However, Q4 showed significant growth with a revenue of 982 million yuan, up 73% year-on-year and 26% quarter-on-quarter, driven by rising prices of commodity broiler chicks, marking a turnaround after three consecutive quarters of decline [1][2]. Group 1: Financial Performance - In 2024, the company sold 586 million white feather broiler chicks, a decrease of 9% year-on-year, primarily due to adjustments in production pace based on market conditions [2]. - The average price of commodity broiler chicks was approximately 3.45 yuan per chick, showing a slight year-on-year decline, but the company benefited from lower feed raw material prices and cost reduction efforts, leading to an estimated profit contribution of about 3.5 billion yuan [2]. - In Q4, the company sold 155 million white feather broiler chicks, an increase of 9% year-on-year and 0.5% quarter-on-quarter, with an average price of approximately 4.79 yuan per chick, up 62% year-on-year and 23% quarter-on-quarter [2]. Group 2: Shareholder Returns and Market Outlook - The company plans to distribute a total cash dividend of 218 million yuan for 2024, with total cash dividends and buyback amounts reaching 337 million yuan, accounting for 67% of the net profit attributable to shareholders [3]. - The white feather chicken product prices have been low for an extended period, but there are signs of recovery, which could positively impact the entire white feather chicken industry chain if macro consumption continues to improve [3]. Group 3: Profit Forecast and Valuation - The company maintains profit forecasts for 2025, 2026, and introduces a new forecast for 2027, expecting net profits attributable to shareholders to be 553 million yuan, 482 million yuan, and 802 million yuan respectively [4]. - The company is assigned a target price of 11.05 yuan based on a 22x PE for 2025, reflecting its competitive advantages and expected capacity release in the commodity segment [4].

Investment Rating - The report provides a buy rating for Hai Da Group (002311.SZ) with an "A" rating, and a buy rating for Sheng Nong Development (002299.SZ) and Wen's Shares (300498.SZ) with a "B" rating. Other companies like Guai Bao Pet (301498.SZ) and Zhong Chong Shares (002891.SZ) are rated as "A" for increase, while Tang Ren Shen (002567.SZ), Shen Nong Group (605296.SH), Ju Xing Nong Mu (603477.SH), and New Hope (000876.SZ) are rated as "B" for increase [1]. Core Insights - The agricultural sector is experiencing a seasonal decline in pig prices, yet they remain within a profitable range. The report indicates that the pig price in the off-season is still maintaining profitability [2][4]. - The report highlights that the pig farming industry is entering a profitability cycle starting from Q2 2024, despite the average debt ratio still needing to decrease significantly. The market's expectations regarding the impact of rising pig production capacity on profitability may be overly pessimistic [4][5]. - The report emphasizes the potential for a recovery in the feed industry due to lower raw material prices and improving breeding conditions, particularly for Hai Da Group, which is expected to see an upward trend in its operational fundamentals [5]. Summary by Sections Pig Farming - As of March 7, 2025, the average prices for external three yuan pigs in Sichuan, Guangdong, and Henan are 14.85, 15.32, and 14.39 yuan per kilogram, reflecting increases of 0.07%, 0.99%, and 0.35% respectively. The average pork price is 20.81 yuan per kilogram, down by 0.24% [3][23]. - The average wholesale price for piglets is 28.00 yuan per kilogram, up by 2.75%, while the average price for two-yuan sows remains stable at 32.47 yuan per kilogram [3][23]. Poultry Farming - The weekly price for white feather broiler chickens is 6.59 yuan per kilogram, up by 8.03%, and the price for broiler chicks is 2.54 yuan per chick, up by 10.92%. However, the breeding profit is negative at -1.90 yuan per chick [31]. Feed Processing - The total industrial feed production in 2024 is reported at 31,503.1 million tons, a decrease of 2.1% from the previous year. The production of pig feed is 14,391.3 million tons, down by 3.9% [34]. Market Performance - For the week of March 3 to March 9, 2025, the Shanghai and Shenzhen 300 index increased by 1.39%, while the agricultural sector rose by 1.04%, ranking 20th among sectors. The top-performing sub-industries include food and feed additives, animal health, fruit and vegetable processing, pig farming, and chicken farming [2][17].

Investment Rating - The industry rating is "Maintain Increase" [4] Core Views - Recent white chicken prices have rebounded after a prolonged decline, with meat chicken prices at 6.59 yuan/kg, up 8% week-on-week, and chicken chick prices at 2.54 yuan/chick, up 10.9% week-on-week. This price recovery is attributed to a supply shortage due to seasonal factors and increased slaughter profits [10][12] - In the pig farming sector, the average price for lean pigs is 14.44 yuan/kg, down 0.6% from the previous week, indicating a continued low valuation in the market. The focus is on leading companies with cost-effectiveness and growth potential [12][14] - The planting and agricultural products sector is expected to see growth potential following the approval of genetically modified varieties for commercial sales, which will gradually confirm the growth and realization timeline for industry companies [12] Summary by Sections Livestock Farming - The average price for lean pigs is 14.44 yuan/kg, down 0.6% week-on-week, with the average wholesale price for pork at 20.81 yuan/kg, down 0.2% [14][15] - In poultry farming, the average price for white feathered meat chickens is 6.59 yuan/kg, up 8% week-on-week, while the average price for chicken products is 8.97 yuan/kg, down 0.3% [12][27] - The profit for self-bred pigs is 33.56 yuan/head, down 9.52 yuan/head, while the profit for purchased piglets is -12.52 yuan/head, down 21.91 yuan/head [16][33] Agricultural Products - The domestic corn spot price is 2229.12 yuan/ton, up 0.5% week-on-week, while the soybean spot price is 3856.79 yuan/ton, down 0.6% [42][56] - The average price for domestic wheat is 2424.61 yuan/ton, down 0.4% week-on-week, and the average price for domestic soybean meal is 3648.57 yuan/ton, down 2.2% [45][63] Industry Recommendations - Companies to watch in the white feathered chicken sector include Shengnong Development, Hefeng Co., and Xiantan Co. due to their complete industry chain [11][12] - In the pig farming sector, focus on leading companies such as Muyuan Foods, Wen's Foodstuffs, and Tangrenshen for their cost-effectiveness and growth potential [12]

Investment Ratings - The report provides investment ratings for several stocks in the agriculture sector, with "Buy-A" ratings for Haida Group (002311.SZ) and "Buy-B" ratings for Shengnong Development (002299.SZ) and Wen's Shares (300498.SZ) [1]. Core Insights - The livestock farming sector is expected to see improved performance in 2024, with a focus on the profitability of pig farming as the industry enters a recovery phase [4]. - The report highlights that the current market may be overly pessimistic regarding the impact of rising pig production capacity on profitability, overlooking potential positive influences from declining raw material costs and macroeconomic demand recovery in 2025 [4]. - The poultry industry is also showing signs of recovery, with rising prices for broiler chickens and eggs, indicating potential profitability improvements [26]. Summary by Sections Livestock Farming - As of February 28, 2025, average prices for external three yuan pigs in Sichuan, Guangdong, and Henan were 14.84, 15.17, and 14.34 yuan/kg, reflecting a week-on-week decline of 1.98%, 3.80%, and 2.05% respectively [3]. - The average pork price was 20.86 yuan/kg, down 2.75% week-on-week, while the average wholesale price for piglets increased by 0.44% to 27.25 yuan/kg [3][18]. - The self-breeding profit was 43.08 yuan/head, while the profit from purchasing piglets was 9.39 yuan/head [3][18]. Poultry Farming - The weekly price for white feather broiler chickens was 6.10 yuan/kg, up 3.92% week-on-week, and the price for broiler chicks rose by 9.05% to 2.29 yuan/chick [26]. - Egg prices increased by 5.41% to 7.80 yuan/kg [26]. Feed Processing - In 2024, the total industrial feed production in China decreased by 2.1% to 31,503.1 million tons, with pig feed production down 3.9% to 14,391.3 million tons [30]. - The production of pet feed, however, saw a growth of 9.3%, indicating a potential area of opportunity within the feed sector [30]. Aquaculture - As of February 28, 2025, prices for sea cucumbers, shrimp, and bass remained stable at 180.00 yuan/kg, 300.00 yuan/kg, and 50.00 yuan/kg respectively [34]. - Freshwater fish prices showed mixed results, with grass carp at 15.02 yuan/kg (down 0.66%) and crucian carp at 20.55 yuan/kg (up 0.05%) [34]. Crop and Oilseed Processing - As of February 28, 2025, soybean prices were 3,878.89 yuan/ton, down 0.49%, while corn and wheat prices were 2,218.14 yuan/ton and 2,434.28 yuan/ton, respectively, showing slight increases [37].