Group 1 - The Indonesian government plans to invest 371 trillion Indonesian Rupiah (approximately 22 billion USD) in various agricultural processing sectors to create 8 million jobs [1] - The investment is a core priority of President Prabowo to achieve an 8% economic growth target, focusing on developing local processing industries [1] - The investment will cover areas such as agriculture, food, livestock, horticulture, and plantations, with a significant portion allocated to crops like sugarcane, cocoa, and cashews [1] Group 2 - The Minister of Investment, Luhut Binsar Pandjaitan, emphasized the substantial impact of agricultural processing on job creation and expressed a desire to accelerate this process [1] - In addition to agricultural processing investments, the government plans to allocate 20 trillion Indonesian Rupiah to enhance chicken and egg supply to support its free meal program [1]

Investment Rating - The industry is rated as "Outperforming the Market" with an expected relative increase of over 10% in the industry index compared to the broader market within the next six months [5][41]. Core Insights - The overall performance of the agriculture, forestry, animal husbandry, and fishery sector showed steady growth in the first three quarters of 2025, with total revenue reaching 952.415 billion yuan, a year-on-year increase of 5.59%, ranking 10th among Shenwan's primary industries. The net profit attributable to shareholders totaled 36.747 billion yuan, up 11.81% year-on-year, ranking 11th [10][39]. - The return on equity (ROE) for the sector was 6.62%, an increase of 0.45 percentage points year-on-year, while the gross profit margin and net profit margin were 11.13% and 3.96%, respectively, reflecting increases of 0.41 and 0.33 percentage points year-on-year [16][39]. Summary by Relevant Sections Overall Industry Performance - The agriculture, forestry, animal husbandry, and fishery sector's revenue and profit growth rates are among the highest in the market, with a total revenue of 952.415 billion yuan and a net profit of 36.747 billion yuan for the first three quarters of 2025 [10][39]. Subsector Performance - **Planting Industry**: Revenue reached 70.967 billion yuan, up 4.74% year-on-year, with a net profit of 1.395 billion yuan, an increase of 4.06% [20]. - **Feed Industry**: Revenue was 215.297 billion yuan, a 12.04% increase year-on-year, with net profit rising 22.24% to 6.058 billion yuan [26]. - **Agricultural Products Processing**: Revenue slightly decreased by 0.31% to 259.411 billion yuan, but net profit surged by 52.36% to 5.188 billion yuan [32]. - **Breeding Industry**: Revenue was 366.406 billion yuan, up 6.97% year-on-year, with net profit increasing by 4.52% to 23.296 billion yuan [33]. - **Animal Health**: Revenue grew by 19.71% to 14.614 billion yuan, with net profit soaring by 97.92% to 1.551 billion yuan [36]. Investment Recommendations - The report suggests focusing on stable operations in leading pig farming enterprises and high-quality domestic brands in the pet food sector, which has significant growth potential due to low market concentration [3][39].

Core Insights - The company reported that as of October 31, 2025, the number of shareholders is 40,355 [2] Summary by Category - **Shareholder Information** - The total number of shareholders is projected to be 40,355 by the end of October 2025 [2]

Core Viewpoint - The agricultural processing sector saw a slight increase of 0.4% on November 7, with COFCO Sugar leading the gains, while the overall Shanghai Composite Index fell by 0.25% [1] Group 1: Market Performance - The Shanghai Composite Index closed at 3997.56, down 0.25% - The Shenzhen Component Index closed at 13404.06, down 0.36% - COFCO Sugar (600737) led the agricultural processing sector with a closing price of 15.87, up 2.59% and a trading volume of 358,800 shares, amounting to a transaction value of 571 million yuan [1] Group 2: Fund Flow Analysis - The agricultural processing sector experienced a net outflow of 66.224 million yuan from institutional investors, while retail investors saw a net inflow of 42.116 million yuan - COFCO Sugar had a net inflow of 50.1879 million yuan from institutional investors, but a net outflow of 53.8606 million yuan from retail investors [2]

Core Insights - The eighth China International Import Expo (CIIE) took place in Shanghai from November 5 to 10, showcasing ADM's commitment to innovation and sustainability in the food and agricultural sector [1] - ADM's Asia Pacific President, Fabiana Bianchi, emphasized the expo as a vital platform for global and Chinese collaboration, highlighting the importance of openness, innovation, and mutual benefits [1] - ADM's China President, Zhu Linbo, expressed the company's aim to integrate global research with local innovation to address health, sustainability, and industrial upgrades in China [1] Company Developments - ADM signed a series of cooperation agreements with key partners and clients during the expo, with a total contract value exceeding 20 billion RMB [1] - The company is enhancing its localization capabilities, planning to establish its first Asia Pacific dietary supplement innovation center in Shanghai in 2024 [1] - ADM is also set to break ground on its second animal nutrition factory in Tianjin in 2024, expected to commence operations in 2026 [1] - The Wuxi R&D center focuses on innovative technology development in the food sector, while the Pinghu flavor factory is enhancing its innovation and production capabilities for flavor solutions [1]

Report Industry Investment Ratings No relevant content provided. Core Views of the Report - The stock index futures are expected to test new highs again, while the bond market for treasury bond futures may be volatile in the short term [17][21]. - Agricultural products show different trends, such as soybean meal with fading bullish factors and a falling price, and sugar with a weakening international market and a fluctuating - weak domestic market [24][27]. - In the black metal sector, steel prices are range - bound, coking coal and coke are in high - level oscillations, and iron ore should be treated with a bearish mindset [57][59][62]. - For non - ferrous metals, precious metals are in range consolidation, copper prices are restricted by consumption, and aluminum prices are relatively strong due to supply concerns [68][71][78]. - In the energy and chemical sector, crude oil prices are weakly volatile due to economic concerns, and asphalt prices are under pressure [16][30]. Summaries by Related Catalogs Financial Derivatives Stock Index Futures - On Thursday, the market rose across the board, with major indexes and futures contracts gaining. The market sentiment was stimulated, and the stock index is expected to continue to rise. Trading strategies include not chasing high prices, conducting IM/IC long 2512 + short ETF cash - and - carry arbitrage, and using bullish spreads at low prices [19][20][21]. Treasury Bond Futures - On Thursday, most treasury bond futures contracts closed down. The central bank's net withdrawal of liquidity affected the market. In the short term, the bond market may be volatile, and trading strategies include waiting and conducting 30Y - 7Y term spread short - selling arbitrage [22][23]. Agricultural Products Soybean Meal - CBOT soybean and soybean meal indexes declined. Brazil's soybean and soybean meal exports are expected to increase. The domestic market has a loss in crushing profit, and the far - month price may face pressure. Trading strategies include short - selling in the far - month and using a short - straddle option strategy [25][26][27]. Sugar - The international sugar market is in a downward trend with increased production in major regions. The domestic market is affected by international prices and increased supply, but is also supported by import policies. Trading strategies include range - bound operations, short - selling international sugar and going long on Zhengzhou sugar [30][31][32]. Oilseeds and Oils - The prices of CBOT soybean oil and BMD palm oil decreased. The palm oil inventory in Malaysia and China shows different trends. Short - term trading strategies include short - term long positions or waiting [33][34][35]. Corn/Corn Starch - The CBOT corn futures price fell. The domestic corn inventory and consumption data are mixed. The price is expected to be range - bound, and trading strategies include short - term long and short positions at appropriate times [37][38]. Live Pigs - The pig price is generally stable or slightly rising. The overall supply pressure still exists. Trading strategies include short - selling and using a short - straddle option strategy [39][40]. Peanuts - The peanut price is weak. The oil mill's purchase is suspended. The peanut is in a short - term bottom - oscillating phase. Trading strategies include short - term long positions and selling a PK601 - P - 7600 option [42][43][44]. Eggs - The egg price is rising. The inventory of laying hens is high, and the price increase space is limited. Trading strategies include closing short positions and waiting [46][48]. Apples - The apple inventory data shows a decrease compared to last year. The price is at a high level with large market divergence. It is recommended to wait and see [50][51]. Cotton - Cotton Yarn - The new cotton is about to be listed in large quantities. The supply may increase, and the demand is in the off - season. The cotton price is expected to be slightly stronger in the short term. Trading strategies include waiting [55][56]. Black Metals Steel - The supply of five major steel products decreased, and the inventory decreased slightly. The steel price is range - bound, affected by production, inventory, and demand. Trading strategies include holding long positions and long - shorting the coil - rebar spread [58][59]. Coking Coal and Coke - The coking coal auction price increased, and the coke price rose for the third time. The supply may be restricted by safety supervision, and the short - term price is in high - level oscillations. Trading strategies include waiting and buying on dips in the medium term [60][61][62]. Iron Ore - The global iron ore supply is high, and the domestic demand is weak. The iron ore price is expected to be bearish. Trading strategies include short - selling [63][64]. Ferroalloys - The prices of silicon iron and manganese silicon are at a low - valuation level. The previous short positions can be reduced. Trading strategies include short - selling a virtual straddle option combination [66]. Non - Ferrous Metals Precious Metals - The prices of gold and silver fluctuated. The US economic and political factors have mixed effects on precious metals. The price is expected to be range - bound. Trading strategies include range - bound operations [68][70][71]. Copper - The copper price is affected by the US government shutdown and supply - demand factors. The supply is tight, and the consumption is insufficient. Trading strategies include waiting and conducting cash - and - carry arbitrage [72][73]. Alumina - The alumina price is in a bottom - oscillating phase. The supply is expected to decrease, but the actual reduction has not occurred. Trading strategies include waiting [75][77][78]. Electrolytic Aluminum - The aluminum price is relatively strong due to overseas supply concerns and domestic consumption growth. Trading strategies include going long on dips and long - shorting the SHFE - LME spread [79][80]. Cast Aluminum Alloy - The price of cast aluminum alloy is strongly oscillating with the aluminum price. It is supported by cost and supply - demand factors. Trading strategies include going long on dips [82][83]. Zinc - The zinc price is range - bound. The supply may decrease due to reduced processing fees and increased exports. Trading strategies include waiting [85][86]. Lead - The lead price may decline due to increased supply and decreased demand. Trading strategies include holding short positions [88][90][92]. Nickel - The nickel market has a loose supply - demand relationship, and the cost support may weaken. The price is in a weak oscillation. Trading strategies include short - selling a 2512 contract short - straddle combination [93][94][95]. Stainless Steel - The stainless steel market has weak supply - demand, and the production profit is difficult to achieve. Trading strategies include short - selling on rebounds [96]. Industrial Silicon - The demand for industrial silicon is weakening, and the supply may decrease due to power price increases. The price is range - bound. Trading strategies include buying on dips [98]. Energy and Chemicals Crude Oil - The crude oil price is weakly volatile due to concerns about the economic outlook [16]. Asphalt - The asphalt price is under pressure due to weak reality and expectations [30]. Fuel Oil - The supply pressure of high - sulfur fuel oil continues to increase [30]. PX & PTA - There are more maintenance operations, and the demand is acceptable [32]. Ethylene Glycol - The supply - demand relationship will become looser in the fourth quarter [33]. Short - Fiber - The demand support is limited, and the price follows the cost increase [33]. PR (Bottle Chip) - The demand is transitioning from the peak season to the off - season [34]. Pure Benzene and Styrene - The price is oscillating in the short term [35]. Propylene - The supply pressure remains, and the price is falling [36]. Plastic PP - PE&PP production increases year - on - year and month - on - month [37]. Caustic Soda - The caustic soda price is weak [37]. PVC - The price is mainly oscillating [38]. Soda Ash - The cost is pushed up by coal prices [39]. Glass - Although there are rumors of production line shutdowns, the demand is weak [40]. Methanol - There is short - term weak support from gas restrictions [41]. Urea - The price rebounds due to news stimulation [42]. Pulp - The pulp price is in a stalemate, and the futures market is strongly oscillating [42]. Logs - The spot price is weakly oscillating [43]. Offset Printing Paper - The market is under pressure, and price increases are not well - implemented [44]. Natural Rubber and 20 - Number Rubber - The tire production increases month - on - month [45]. Butadiene Rubber - BD&BR production shows marginal reduction and month - on - month tire production increase [46].

1. Report Industry Investment Rating - The investment rating for the industry is neutral [4] 2. Core Viewpoints of the Report - The prices of three major oils fluctuated yesterday, and the fundamentals of the oils maintained the existing pattern with slight differentiation among varieties. The palm oil production area remained highly productive, and the demand outlook weakened, exerting some pressure on prices [3] - The USDA may release a monthly supply and demand report next week, and there are some differences in the market. However, the South American production is still relatively optimistic. The recent China-US peace talks to reduce soybean tariffs have driven up CBOT soybeans, while the domestic market is basically stable. The rapeseed sector fluctuates greatly affected by China-Canada trade policies, and recent macro - policy changes need to be closely monitored [3] 3. Summary by Related Catalog 3.1 Futures and Spot Market Conditions - Futures: The closing price of the palm oil 2601 contract yesterday was 8732.00 yuan/ton, with a change of +142 yuan and a range of +1.65%. The closing price of the soybean oil 2601 contract was 8188.00 yuan/ton, with a change of +50.00 yuan and a range of +0.61%. The closing price of the rapeseed oil 2601 contract was 9564.00 yuan/ton, with a change of +157.00 yuan and a range of +1.67% [1] - Spot: The spot price of palm oil in Guangdong was 8570.00 yuan/ton, with a change of +50.00 yuan and a range of +0.59%, and the spot basis was P01 - 162.00, with a change of -92.00 yuan. The spot price of first - grade soybean oil in Tianjin was 8330.00 yuan/ton, with a change of +20.00 yuan/ton and a range of +0.24%, and the spot basis was Y01 + 142.00, with a change of -30.00 yuan. The spot price of fourth - grade rapeseed oil in Jiangsu was 9910.00 yuan/ton, with a change of +150.00 yuan and a range of +1.54%, and the spot basis was OI01 + 346.00, with a change of -7.00 yuan [1] 3.2 Market Information Aggregation - Imported soybeans: The C&F price of US Gulf soybeans (December shipment) was 506 US dollars/ton, up 6 US dollars/ton from the previous trading day; the C&F price of US West soybeans (December shipment) was 506 US dollars/ton, up 4 US dollars/ton; the C&F price of Brazilian soybeans (December shipment) was 500 US dollars/ton, up 3 US dollars/ton. The import soybean premium quotes were: 243 cents/bushel for the Gulf of Mexico (December shipment), unchanged from the previous trading day; 245 cents/bushel for the US West Coast (December shipment), down 3 cents/bushel; and 228 cents/bushel for Brazilian ports (December shipment), down 7 cents/bushel [2] - Imported oils: The C&F price of Argentine soybean oil (December shipment) was 1133 US dollars/ton, down 6 US dollars/ton from the previous trading day; the C&F price of Argentine soybean oil (February shipment) was 1144 US dollars/ton, down 8 US dollars/ton. The C&F quote for imported rapeseed oil: Canadian rapeseed oil (December shipment) was 1100 US dollars/ton, unchanged from the previous trading day; Canadian rapeseed oil (February shipment) was 1080 US dollars/ton, unchanged. The C&F price of Canadian rapeseed (January shipment) was 521 US dollars/ton, up 10 US dollars/ton from the previous trading day; the C&F price of Canadian rapeseed (March shipment) was 529 US dollars/ton, up 8 US dollars/ton [2] - Palm oil production: According to the data of the Southern Peninsula Palm Oil Millers Association (SPPOMA), from November 1 - 5, 2025, the yield per unit of Malaysian palm oil increased by 5.12% month - on - month, the oil extraction rate increased by 0.32% month - on - month, and the production increased by 6.80% month - on - month [2] - Malaysian waste cooking oil export: The deputy minister of the Malaysian Ministry of Plantation Industries and Commodities (KPK) said that with the significant increase in the output of a sustainable aviation fuel (SAF) plant in Johor, Malaysia's waste cooking oil exports will face "direct and moderate pressure" next year [2] - Brazilian agricultural product exports: According to the prediction of the Brazilian National Association of Grain Exporters (ANEC), Brazil's soybean exports in November are expected to reach 3.77 million tons, higher than 2.34 million tons in the same period last year; soybean meal exports are expected to be 2.23 million tons, higher than 1.73 million tons in the same period last year; corn exports are expected to be 5.57 million tons, higher than 4.92 million tons in the same period last year [2]

Group 1 - The Chicago Board of Trade (CBOT) soybean oil futures prices showed a slight upward trend, opening at 49.35 cents per pound and currently at 49.36 cents per pound, with an increase of 0.16% [1] - The highest price during the trading session reached 49.45 cents per pound, while the lowest dipped to 49.22 cents per pound [1] Group 2 - On November 6, the CBOT soybean oil futures had an opening price of 49.60 cents, a highest price of 50.33 cents, a lowest price of 49.31 cents, and a closing price of 49.41 cents, reflecting a decrease of 0.52% [2] - Argentine soybean oil (December shipment) C&F price was reported at $1133 per ton, down by $6 from the previous trading day; the February shipment price was $1144 per ton, down by $8 [2] - The national first-class soybean oil trading volume on November 6 was 39,800 tons, an increase of 246.09% compared to the previous trading day [2] - The Dalian Commodity Exchange soybean oil futures warehouse receipts totaled 26,460 lots on November 6, a decrease of 984 lots from the previous trading day [2]

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - The sentiment in the oil and fat market has improved, and it is waiting for the fermentation of bullish factors. The protein meal market has seen a decline with reduced positions and light trading. The corn/starch market has shown stable to weak spot prices and an increase in positions on the futures market. The hog market is experiencing price fluctuations due to farmers' reluctance to sell at low prices. The natural rubber market has rebounded strongly, and its sustainability needs attention. The synthetic rubber market has seen a temporary improvement in sentiment as raw material prices have stabilized. The cotton market is fluctuating within a narrow range with limited upside and downside potential. The sugar market is testing its lower support in the short term. The pulp market has continued to rise, and the enthusiasm for futures - cash arbitrage has increased. The double - glue paper market has strengthened following the pulp market. The log market is oscillating at the bottom [1][6]. 3. Summary by Relevant Catalogs 3.1 Oil and Fats - **View**: The market sentiment has improved, waiting for bullish factors to ferment. The outlook is that palm oil, rapeseed oil, and soybean oil will oscillate. - **Logic**: Optimistic trade sentiment led to the rise of US soybeans on Wednesday, and domestic oils stopped falling and rose yesterday, with palm and rapeseed oils being relatively strong. The US government is in a "shutdown," and the market doubts the Fed's further interest rate cuts this year. US crude oil inventories increased unexpectedly. From an industrial perspective, US soybean data updates are suspended. The US soybean harvest is nearly over, and the market expects a high probability of a decline in US soybean yield. China's tariff adjustment policy boosts the export demand for US soybeans. Brazilian soybean planting is going smoothly. The arrival of imported soybeans in China may be at a relatively high level, and the de - stocking of domestic soybean oil is expected to be slow. In October, the production of Malaysian palm oil increased month - on - month, and the probability of inventory accumulation is high. Indonesia's palm oil inventory remains low due to increased consumption in biodiesel. India's vegetable oil imports may decline seasonally. With the large - scale listing of Russian rapeseed, the supply of domestic rapeseed oil is expected to increase [2][6]. 3.2 Protein Meal - **View**: The market has seen a decline with reduced positions and light trading. The outlook is that soybean meal and rapeseed meal will oscillate. - **Logic**: Internationally, US soybeans are oscillating at a high level, and the positive impact of China's purchases has been gradually digested. Attention should be paid to the US soybean yield and the growth of South American soybeans. The export volume of old - crop Brazilian soybeans in October decreased, but the discount is more favorable than that of the US. Brazilian soybeans will enter a critical growth period in November, and the impact of La Nina should be monitored. CBOT US soybeans are approaching a reasonable valuation, and new bullish factors are needed for an upward movement. Domestically, in the short term, the import and crushing profit of the January futures contract is still in the red, and profit margins need to be provided to stimulate ship purchases. In the medium term, the quantity of China's US soybean purchases will be gradually realized. The South American weather and the strength of the fourth - quarter consumption season will determine the upward potential of soybean meal. In the long term, there is expected to be no gap in soybean supply and demand in the fourth quarter of 2025 and the first quarter of 2026. The demand for soybean meal is expected to be stable or increase slightly, and rapeseed meal may follow the trend of soybean meal [6]. 3.3 Corn/Starch - **View**: Spot prices are stable to weak, and the futures market has increased positions and risen. The outlook is for oscillation. - **Logic**: The domestic corn price is generally stable with local fluctuations. In the Northeast, farmers are reluctant to sell as the temperature drops, and the supply pressure has eased. However, there are bottlenecks in transportation capacity, leading to increased freight costs and a slow - to - resolve shortage in the sales area. In November, the market is still under the pressure of new grain listing. The expected increase in production in the Northeast will drag down prices. Feed - using enterprises are mainly replenishing inventory based on rigid demand, and there is insufficient upward driving force for prices before large - scale inventory building occurs [7][8]. 3.4 Hogs - **View**: Farmers are reluctant to sell at low prices, and prices are oscillating. The outlook is for a weak oscillation. - **Logic**: The supply and demand are loose, but farmers' reluctance to sell at low prices after the price weakens has led to a low - level oscillation of hog prices. In the short term, the utilization rate of second - fattening pens has increased, but the rebound in hog prices has suppressed the enthusiasm for second - fattening. In the medium term, the number of sows capable of reproduction was at a high level in the first half of 2025, and the number of newborn piglets increased from January to September. It is expected that the hog slaughter volume will continue to increase in the fourth quarter. In the long term, the capacity of sows capable of reproduction has started to decline. With the dual drivers of "policy + losses," the reduction of sow production is expected to accelerate in the fourth quarter, and the supply pressure will gradually ease in the second half of 2026. The demand has increased slightly as the temperature drops. Group farms are actively selling, and the average weight has decreased. The enthusiasm for second - fattening has weakened [8]. 3.5 Natural Rubber - **View**: The market has rebounded strongly, and its sustainability needs attention. The outlook is for oscillation. - **Logic**: The rebound of the natural rubber market is in line with the rebound rhythm of commodities. The fundamental situation can provide some bottom support. The RU warehouse receipts have been continuously cancelled, and the new rubber registration progress is slow, with a lower valuation compared to NR. The import pressure in November may be relatively large, which will put pressure on the upside of NR. The short - term spread between RU and NR may be repaired. The recent price fluctuations are mainly affected by the macro - environment. If there is no further macro - driving force, the rubber price may face downward adjustment pressure. However, as it enters November, there may still be room for speculation about domestic rubber - cutting suspension and RU warehouse receipts, so the downside space is relatively limited [9][11]. 3.6 Synthetic Rubber - **View**: Raw material prices have stabilized, and sentiment has temporarily improved. The outlook is for oscillation. - **Logic**: The BR main contract has switched to the January contract and continued to rebound, returning to the level before Tuesday's decline. The improvement in sentiment is due to the better trading volume and temporary stabilization of butadiene prices, along with a strong rebound in the overall commodity market. The price of butadiene dropped rapidly last week to a record low this year. The supply - demand contradiction in the market has intensified, and the cautious attitude of downstream buyers has led to poor trading volume. Although the downstream buyers have gradually entered the market after the price dropped to a low level, and the supply side of butadiene intends to stop the price decline, buyers are still cautious. In the short term, attention should be paid to whether the improvement in trading sentiment can continue to support the butadiene price. In the medium term, the supply - demand of butadiene will remain in surplus in the next two months before the end of the year, and the price may decline further [12]. 3.7 Cotton - **View**: The market is fluctuating within a narrow range with limited upside and downside potential. The short - term outlook is for the January contract to oscillate within a range, and the long - term outlook is for a bullish oscillation. - **Logic**: The increase in the new - season Xinjiang cotton production is less than expected, and the purchase cost has increased, which supported the cotton price to oscillate strongly in October. The improvement in Sino - US trade relations and the reduction of import tariffs on US cotton are expected to promote US cotton exports to China and China's textile exports next year, but the short - term impact is limited. With the listing of new cotton, the supply has increased, and the cotton price is under pressure. At the same time, the profit from hedging has gradually emerged, and there is hedging pressure on the upside of the cotton price. The upper pressure on the January contract is 13,600 - 13,800 yuan/ton, and the lower support is 13,300 - 13,400 yuan/ton [13]. 3.8 Sugar - **View**: The market is testing its lower support in the short term. The long - term outlook is for a weak oscillation. - **Logic**: In the international market, the peak of Brazil's bi - weekly sugar production has ended, and the export volume in October has decreased, which may marginally improve the loose international trade flow. However, as the Northern Hemisphere enters the peak crushing season, the supply of new sugar will increase, and the downward pressure on international sugar prices remains. Brazil's cumulative sugar production has increased slightly year - on - year, and the market's expectation of Brazil's production increase has not changed. Thailand and India are expected to increase production in the new season. In the domestic market, the demand from August to September was average, and the industrial inventories in Guangxi and Yunnan have increased year - on - year. Although the tightening of import controls on syrups and premixes and the expected exhaustion of import licenses have made the domestic market relatively strong, there is still downward pressure on the domestic market as the southern sugar enters the peak crushing season [14][15]. 3.9 Pulp - **View**: The market has continued to rise, and the enthusiasm for futures - cash arbitrage has increased. The outlook is for oscillation. - **Logic**: The recent rise is due to the expected increase in the price of downstream paper driven by the increase in packaging paper prices and the improvement in the tender demand for cultural paper, as well as the increase in wood chip prices. From a medium - term perspective, the previously traded bearish factors have not completely ended. Although the bullish factors in downstream demand may bring short - term bullishness, the upward space is expected to be limited. On the fundamental side, the demand for softwood pulp has been low due to formula adjustments in recent years. There is export pressure from overseas to China, and the import price in US dollars remains weak. The hardwood pulp market has an obvious surplus situation. Although the demand has increased seasonally, it is difficult to support the price above the production cost. The futures main contract price is approaching the prices of some brands, and it is difficult for the futures to have a premium under the weak supply - demand background. The large number of expiring warehouse receipts this year will also put pressure on the futures price. However, there are also some bullish factors, such as the obvious increase in the price of packaging paper, the increase in the cost of hardwood imports, and the expected marginal improvement in cultural paper demand in November and December. The paper pulp futures market is inclined to a wait - and - see attitude [16]. 3.10 Double - Glue Paper - **View**: The market has strengthened following the pulp market. The outlook is for oscillation. - **Logic**: The price of double - glue paper in Shandong has remained stable. The market supply is abundant, and the consumption - side support is insufficient. The supply - demand relationship is still weak, and the support from wood pulp is limited. The new production facilities are operating stably, and the paper supply surplus is still severe. The demand side has seen the start of publishing tenders, but the social orders have not improved significantly, and the overall downstream consumption is still weak. Some factories are facing greater production and sales pressure. Although some paper enterprises have announced price increase plans in early November, the market is waiting and seeing, and most prices will remain stable at the end - of - month settlement. The publishing tenders have not yet started intensively, and the demand side has no obvious positive factors. The upstream wood pulp price is under pressure, and the cost support for double - glue paper is limited. The price of double - glue paper is expected to stabilize [17]. 3.11 Logs - **View**: The market is oscillating at the bottom. The outlook is for a weak oscillation. - **Logic**: The log market has remained weak and stable this week. On the one hand, traders are actively selling, and the decline in the sales volume of laminated wood has put pressure on the price of sawn timber, leading to downward pressure on the spot market. On the other hand, New Zealand log suppliers have adjusted their quotes, and there will be a greater pressure of blue - stained timber on the arrival of ships in the future, which will also put pressure on the spot market. The log peak season is gradually ending, and the port outbound volume will decline. After the peak season in mid - fourth quarter, the log inventory may accumulate again. Although the market has a short - term bearish sentiment, the log valuation is not high, and the inventory in the Jiangsu market is relatively low, so the downward space is limited. The speculative side is advised to wait and see [19].

Investment Rating - The investment rating for the company is "Outperform the Market" [6][3][24] Core Insights - The company's net profit attributable to shareholders increased by 92.06% year-on-year in the first three quarters of 2025, driven by growth in its main businesses: kitchen foods, feed raw materials, and oil technology [1][9] - Revenue for the first three quarters of 2025 reached 184.27 billion yuan, reflecting a year-on-year increase of 5.02% [1][9] - The kitchen food segment saw significant profit growth, particularly in flour and rice, benefiting from lower raw material prices and effective procurement and marketing strategies [1][9] - The feed raw materials and oil technology segment also experienced growth in both sales and profits, supported by lower import costs for soybeans and stable demand in the domestic aquaculture industry [2][9] Summary by Sections Kitchen Food Business - High-end products such as olive oil and peanut oil showed robust growth, with the company actively expanding its health product offerings [2] - The introduction of new high-end products received positive feedback, with some achieving a repurchase rate exceeding 30% [2] Feed Raw Materials and Oil Technology Business - The company is expected to maintain good performance in its crushing business due to favorable raw material procurement and stable downstream demand [2] - The anticipated increase in soybean crushing profits is supported by low import costs and favorable biodiesel policies in Indonesia [2] Financial Forecasts - The company forecasts net profits for 2025-2027 to be 3.143 billion, 3.645 billion, and 3.909 billion yuan, respectively, with corresponding P/E ratios of 55, 48, and 44 [3][24] - Revenue projections for 2025 are set at 254.39 billion yuan, reflecting a growth rate of 6.5% [4][24] Financial Metrics - The gross margin improved by 1.66 percentage points to 6.55%, while the net margin increased by 0.85 percentage points to 1.62% in the first three quarters of 2025 [16] - Operating cash flow significantly improved, with a net increase of 120% year-on-year, reaching 27.597 billion yuan [18]