Core Insights - The export of 18,000 domestically bred seed eggs from Beijing to Mali represents a significant step in agricultural cooperation between China and Mali under the Belt and Road Initiative [1] - Beijing Customs has established a specialized task force to facilitate the export of poultry seeds, addressing challenges faced by companies in their first export attempts [2] - The successful export of high-yield egg-laying chickens to Tanzania in 2023 and subsequent exports to other African countries highlight the growing international presence of China's poultry industry [3] Group 1: Export Initiatives - The first batch of seed eggs was successfully exported to Mali, marking a breakthrough in poultry seed exports [1] - Beijing Customs has implemented a "one enterprise, one policy" service mechanism to support companies in overcoming export challenges [2] - The export of 26,300 poultry in 2024 represents a 59.39% increase compared to the previous year, indicating a growing market for Chinese poultry products [4] Group 2: Global Expansion - In 2025, Beijing Customs aims to enhance the global presence of the poultry industry by facilitating the export of seed eggs to countries like Tajikistan and Mali [5] - The customs authority has successfully reduced the export clearance time by 30%, ensuring timely delivery of seed eggs to international markets [5] - Over 50,000 seed eggs have been exported this year, marking the first time Beijing's seed eggs have reached African countries, thus expanding market opportunities for Chinese enterprises [5]

Core Viewpoint - The company reported a decline in revenue and net profit for Q1 2025, indicating challenges in the poultry and pig breeding sectors due to market conditions and external factors [1][2][3]. Revenue and Profit Summary - In Q1 2025, the company achieved revenue of 620 million yuan, a year-on-year decrease of 9.4% and a quarter-on-quarter decrease of 36.6% [1]. - The net profit attributable to shareholders was -10 million yuan, reflecting a year-on-year decline of 112.0% and a quarter-on-quarter decline of 106.5% [1]. Poultry Business Performance - The company sold a total of 150 million white feather broiler chicks in Q1 2025, a slight decrease of 0.4% quarter-on-quarter but an increase of 18.2% year-on-year [2]. - Revenue from chick sales was 410 million yuan, with a quarter-on-quarter increase of 45.0% but a year-on-year decrease of 25.8% [2]. - The average selling price of chicks was 2.6 yuan per chick, down 44.1% quarter-on-quarter and 37.1% year-on-year [2]. - The price pressure on parent and commercial chicks is expected to ease by Q4 2025, potentially benefiting the company [2]. Pig Breeding Business Performance - The company sold 14,099 breeding pigs in Q1 2025, a significant year-on-year increase of 344.1% [3]. - Revenue from pig sales reached 30.26 million yuan, reflecting a year-on-year increase of 216.9% [3]. - The gradual release of breeding pig capacity is contributing to the substantial growth in sales and revenue [3]. Strategic Investments - The company plans to invest 500 million yuan to build a breeding farm for 1 million sets of parent white feather broiler chickens and a feed factory in Shanxi Province [3]. - This investment aims to expand the breeding scale and improve the supply capacity of commercial white feather chicks [3]. Future Outlook - The company is expected to benefit from the recovery in the breeding industry, with projected net profits of 552 million yuan, 623 million yuan, and 670 million yuan for 2025 to 2027, respectively [3]. - The earnings per share (EPS) are forecasted to be 0.50, 0.56, and 0.61 yuan, with corresponding price-to-earnings (PE) ratios of 17, 15, and 14 times [3]. - As a leading enterprise in the breeding industry, the company is well-positioned to capitalize on the industry's upward trend due to shortages in breeding stock [3][4].

Investment Rating - The report maintains a "Recommended" rating for the company [3][5]. Core Views - The company experienced a decline in revenue and profit in Q1 2025 due to increased supply leading to lower chick prices, with revenue at 620 million yuan, down 9.4% year-on-year and 36.6% quarter-on-quarter, and a net profit of -10 million yuan, down 112.0% year-on-year and 106.5% quarter-on-quarter [1][2]. - The sales of white feather broiler chicks totaled 150 million, with a year-on-year increase of 18.2%, but the average selling price dropped significantly, impacting profitability [2]. - The company is expanding its breeding capacity with a planned investment of 500 million yuan to build a facility for 1 million sets of parent stock white feather broiler chickens [3]. - Future projections indicate a recovery in chick prices by Q4 2025 as supply decreases, with expected net profits of 552 million, 623 million, and 670 million yuan for 2025, 2026, and 2027 respectively [3][8]. Summary by Sections Financial Performance - Q1 2025 revenue was 620 million yuan, a decrease of 9.4% year-on-year and 36.6% quarter-on-quarter, with a net profit of -10 million yuan [1]. - The company sold 150 million white feather broiler chicks, with revenue from this segment at 410 million yuan, down 25.8% year-on-year [2]. - The average selling price for chicks was 2.6 yuan each, reflecting a significant decline of 44.1% quarter-on-quarter and 37.1% year-on-year [2]. Production and Investment - The company sold 14,099 breeding pigs in Q1 2025, marking a substantial increase of 344.1% year-on-year, with revenue from this segment at 30.26 million yuan [3]. - A strategic investment of 500 million yuan is planned to enhance the company's white feather broiler business, including the construction of breeding facilities and a feed factory [3]. Future Outlook - The company anticipates a gradual recovery in chick prices by late 2025, benefiting from a reduction in supply and a favorable market environment [2][3]. - Projected net profits for the years 2025 to 2027 are expected to grow, with earnings per share (EPS) forecasted at 0.50, 0.56, and 0.61 yuan respectively [3][8].