Investment Rating - Investment recommendation: Outperform the market (maintained) [7] Core Insights - The pig farming industry is entering a sustained profitability period, with increasing piglet numbers expected to lead to ample supply in the second half of 2025 [4][11] - The feed market is anticipated to expand due to recovering demand in pig and aquaculture feed, with domestic companies actively seeking overseas growth opportunities [4][11] - The pet industry remains robust, with strong domestic growth potential and a focus on upgrading products and local brands [4][11] Summary by Sections 1. Pig Farming - In H1 2025, 15 listed pig farming companies achieved revenues of CNY 235.068 billion, a year-on-year increase of 16.46%, with net profits reaching CNY 16.848 billion, up 1315% [8][19] - In Q2 2025, the average price of pigs was CNY 14.57 per kg, showing a decline of 2.96% quarter-on-quarter and 10.89% year-on-year [19] - The number of pigs slaughtered by these companies in H1 2025 was 94.3441 million, a year-on-year increase of 30.65% [31] 2. Pet Industry - In H1 2025, total revenue for selected pet food companies reached CNY 6.4 billion, a year-on-year increase of 22% [39] - The average gross margin for major pet food companies improved to 35.38%, up 3.26 percentage points year-on-year, driven by product upgrades and favorable raw material prices [44] - The net profit for these companies in H1 2025 was CNY 660 million, reflecting a 20% increase year-on-year [39] 3. Feed Industry - In H1 2025, total revenue for selected feed companies was CNY 81.3 billion, a year-on-year increase of 15% [54] - The net profit for these companies in H1 2025 was CNY 2.94 billion, up 42% year-on-year [54] - The feed market is expected to benefit from increased demand in both pig and aquaculture sectors, with companies like Haida Group and Guangdong Feed showing strong performance [54][58]

Core Insights - The company reported that its total overseas feed sales exceeded 3 million tons in the first half of the year, representing an approximate 18% year-on-year growth [1] - The sales growth breakdown includes a 15% increase in poultry feed, a 14% increase in pig feed, over 30% growth in aquatic feed, and nearly a doubling in ruminant feed [1] - Company executives indicated that the profit per ton for poultry feed is close to 140 yuan, while the profit per ton for pig feed has surpassed 300 yuan [1]

Group 1 - The core viewpoint of the article highlights the intense competition in the domestic poultry feed market and significant competition in the pig feed market, leading to increased challenges for both small and medium-sized feed enterprises as well as larger companies [2] - The announcement from Haida Group indicates that the survival space for medium and large feed enterprises is also being squeezed due to the competitive landscape [2] - The overall environment for feed companies is becoming increasingly difficult, impacting their operational viability [2]

Core Viewpoint - Haitai Securities report indicates that Haida Group's net profit attributable to shareholders for the first half of the year reached 2.64 billion yuan, representing a year-on-year increase of 24.2% [1] - The net profit for Q2 2025 was 1.36 billion yuan, showing a year-on-year growth of 7.3% [1] - The company's performance is within the forecast range for the first half of 2025, which is estimated to be between 2.5 billion to 2.8 billion yuan [1] Group 1 - The main drivers for the high profit growth in the first half of 2025 are the profitability from pig futures hedging and the significant growth in overseas feed business [1] - The recovery in domestic aquatic feed and pig feed businesses is noteworthy [1] - The company is optimistic about the domestic and international resonance growth of its feed main business and has maintained its profit forecast [1] Group 2 - Due to better-than-expected growth in feed sales, the target price has been raised to 66.4 yuan, while maintaining a "buy" rating [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The company reported a revenue of 58.831 billion yuan for the first half of 2025, representing a year-on-year growth of 12.50%, and a net profit attributable to shareholders of 2.639 billion yuan, up 24.16% year-on-year. A cash dividend of 2.00 yuan per 10 shares (tax included) is proposed for all shareholders [4][12] - The company's feed sales volume increased significantly, with external sales reaching approximately 13.65 million tons in the first half of 2025, a year-on-year increase of 26%. The breakdown includes aquatic feed sales of about 2.8 million tons (up 16%), poultry feed sales of about 7.3 million tons (up 24%), and pig feed sales of about 3.4 million tons (up 43%). The overseas sales also saw a year-on-year increase of approximately 40% [14] - The company is focusing on improving breeding levels and has seen stable development in its seedling and animal health businesses. The pig breeding business is adopting a model that mitigates risks and locks in profits, while shrimp farming is strategically timed to compete with traditional products [15] Summary by Sections Financial Performance - In the first half of 2025, the company's feed sales gross margin was 10.04% (year-on-year stable), while the breeding business gross margin was 20.26% (up 3.37 percentage points). The company's sales, management, R&D, and financial expenses were 1.418 billion, 1.796 billion, 426 million, and 149 million yuan, respectively, with year-on-year changes of +12.57%, +20.68%, +6.48%, and -30.37% [13] - The company expects revenue for 2025-2027 to be 128.599 billion, 147.750 billion, and 161.161 billion yuan, with year-on-year growth rates of 12.21%, 14.89%, and 9.08%. The net profit attributable to shareholders is projected to be 5.025 billion, 5.455 billion, and 6.137 billion yuan, with growth rates of 11.57%, 8.56%, and 12.50% respectively [16][17] Market Position - The company has further increased its market share due to the growth in feed sales and the increase in downstream inventory. The absolute increase in feed sales volume in the first half of 2025 is close to the company's target for the entire year [14] - The company is expected to maintain strong growth in its main business, leading to an upward revision of its earnings forecast for 2026-2027 [16]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 588.3 billion yuan in the first half of 2025, representing a year-on-year growth of 12.5%, with a net profit attributable to the parent company of 26.4 billion yuan, up 24.2% year-on-year [3][4] - The company is close to achieving its annual feed sales growth target, with an external sales increase of approximately 284 million tons in the first half of 2025, nearing the annual target of over 300 million tons [4][8] - The overseas feed sales maintained a high growth rate of 40% year-on-year, indicating strong market expansion [5][6] Summary by Sections Financial Performance - In the first half of 2025, the company reported a gross profit margin of 9.79% in its feed business, showing a slight year-on-year increase [5] - The company’s net profit for the first half of 2025 was 26.5 billion yuan, reflecting a 30.6% increase after excluding non-recurring items [3] - The projected revenue for 2025-2027 is expected to reach 1397.9 billion yuan, 1580.6 billion yuan, and 1790.8 billion yuan, with year-on-year growth rates of 22.0%, 13.1%, and 13.3% respectively [8][10] Market Position - The company’s feed sales volume reached approximately 14.7 million tons in the first half of 2025, a year-on-year increase of about 25% [5] - The company’s market share in the industrial feed sector has further increased, with total national industrial feed production reaching 158.5 million tons, up 7.7% year-on-year [5] Product Segmentation - The company’s poultry feed external sales were about 7.3 million tons, growing approximately 24% year-on-year, while pig feed external sales increased by about 43% to 3.4 million tons [5][6] - The company is actively developing a comprehensive service system for pig farming groups, which has led to rapid growth in feed product sales to these clients [7] Future Outlook - The company expects to see steady growth in pig slaughtering volumes, with projections of 660 million heads in 2025, 693 million in 2026, and 728 million in 2027, reflecting year-on-year growth of 10%, 5%, and 5% respectively [8] - The company aims to enhance its competitive advantage by expanding its service offerings across the entire aquaculture value chain, including high-quality seedling and health management services [6][8]

Core Viewpoint - The company reported strong financial performance for the first half of 2025, driven by growth in feed sales and profitability from futures hedging in the pig farming sector [1][2]. Financial Performance - For H1 2025, the company achieved revenue of 58.8 billion yuan, a year-on-year increase of 12.5%, and a net profit attributable to shareholders of 2.64 billion yuan, up 24.2% year-on-year [1]. - In Q2 2025, revenue reached 33.2 billion yuan, reflecting a 14% year-on-year growth, while net profit was 1.36 billion yuan, a 7.3% increase year-on-year [1]. Sales Growth - The company's feed sales volume increased by 26% year-on-year to 13.65 million tons in H1 2025, with significant growth in aquatic feed (16%), pig feed (43%), and poultry feed (24%) [2]. - The overseas feed business maintained a high growth rate of 40%, with gross margin rising by 2.54 percentage points to 15.1%, significantly higher than the average gross margin of the company's main business [2]. Market Expansion - The company is actively expanding its feed business in overseas markets, particularly in Southeast Asia and Africa, where there is significant potential for growth in meat, egg, and milk consumption [3]. - The company aims to achieve overseas feed sales of 7.2 million tons by 2030, with a projected compound annual growth rate (CAGR) of approximately 20%, and domestic feed sales of about 39.3 million tons, with a CAGR of around 10% [3]. Valuation and Rating - The company maintains profit forecasts of 5.02 billion yuan, 5.48 billion yuan, and 7.04 billion yuan for 2025, 2026, and 2027, respectively [4]. - The target price has been raised to 66.4 yuan, corresponding to a 22 times price-to-earnings (PE) ratio for 2025, reflecting better-than-expected feed sales growth [4].

Investment Rating - The report maintains a "Buy" rating for the company [6][4]. Core Views - The company achieved a revenue of 58.8 billion RMB in 2025H1, representing a year-over-year increase of 12.5%, and a net profit attributable to shareholders of 2.64 billion RMB, up 24.2% year-over-year [1][2]. - The growth in profitability is primarily driven by gains from pig futures hedging and strong growth in overseas feed business, with domestic aquaculture and pig feed businesses showing signs of recovery [1][2]. - The report anticipates continued domestic and international growth in the feed business, leading to an upward revision of the target price to 66.4 RMB, reflecting a 22x PE valuation for 2025 [4][6]. Summary by Sections Financial Performance - In 2025H1, the company's feed external sales increased by 26% year-over-year to 13.65 million tons, with significant growth in aquaculture feed (16%), pig feed (43%), and poultry feed (24%) [2]. - The overseas feed business maintained a high growth rate of 40%, with a gross margin increase of 2.54 percentage points to 15.1%, significantly higher than the average gross margin of the main business [2]. Market Outlook - The company is actively expanding into the feed markets in Asia, Africa, and Latin America, with a target of achieving 7.2 million tons in overseas feed sales by 2030, indicating a compound annual growth rate (CAGR) of approximately 20% [3]. - The domestic feed business is expected to recover starting in 2025, supported by rising prices in aquaculture due to declining stocking volumes and a rebound in pig inventory [3]. Profit Forecast - The report maintains profit forecasts for 2025, 2026, and 2027 at 5.02 billion RMB, 5.48 billion RMB, and 7.04 billion RMB, respectively [4][10]. - The estimated earnings per share (EPS) for 2025 is projected at 3.02 RMB, with a return on equity (ROE) of 19.69% [10][16].

Investment Rating - Investment recommendation: Outperform the market (maintained) [8] Core Viewpoints - The June breeding sow inventory showed a slight increase, with a total of 40.43 million sows, which is 103.7% of the normal holding capacity of 39 million sows, indicating that production capacity is still within the green and reasonable control area [5][12][31] - The Ministry of Agriculture and Rural Affairs will focus on regulating pig production capacity and stabilizing production and prices to promote stable development in pig production [5][12] - The report recommends excellent breeding companies with significant cost advantages and high output realization rates, such as Muyuan Foods and Wens Foodstuff Group, as well as post-cycle animal health and feed sectors like Haida Group [5][12][32] Summary by Sections 1. June Breeding Sow Inventory Changes - The breeding sow inventory in June showed a slight increase, with a 0.8% decrease in the number of pigs over five months old, suggesting a reduction in pig output in July and August, which is beneficial for stabilizing pig prices and farming profitability [5][16] - The June breeding sow inventory from the Ministry of Agriculture and Rural Affairs indicates a slight increase, with data showing a 0.22% increase in sample 1 and a 0.12% increase in sample 2 [10][11][18] 2. Future Pig Price Trends and Capacity Changes - The report anticipates that pig prices will face downward pressure in 2025 due to a relatively loose supply situation, with an expected increase in pig output until at least September 2025 [30][31] - The breeding sow inventory is expected to continue to decrease, with the profitability of breeding operations declining, leading to a potential reduction in production capacity [31][32] 3. Investment Recommendations - The report emphasizes the recommendation of low-cost pig farming enterprises, highlighting the expected increase in breeding sow inventory and production efficiency, while also noting the anticipated pressure on pig prices in 2025 [12][32][33]

Group 1: Swine Industry - The swine industry is expected to maintain growth in hog output until at least September 2025, but overall hog prices are projected to remain under pressure, leading to a potential decline in profitability for the industry [1] - The number of breeding sows has started to decline since December 2024, with a slight increase in February 2025, and a 1.03% decrease in April 2025 compared to the peak in 2024, indicating a low overall capacity reduction in the industry [1] - The price of piglets has begun to decline since May 2025, which may prompt breeding farms to actively cull sows, leading to an expected simultaneous drop in hog and piglet prices in the second half of the year [1] Group 2: Feed Industry - China's feed production reached 10.3 million tons from January to April 2025, a year-on-year increase of 11%, driven by the recovery in hog stocks, increased aquaculture, and stable poultry stocks [2] - Vietnam's animal feed production also saw growth, with a total output of 4.72 million tons (up 7.69% year-on-year) and aquaculture feed production of 2.84 million tons (up 8.37% year-on-year), indicating a robust demand for feed [2] - The growth in livestock and aquaculture stocks, along with increased feed penetration rates, suggests that Chinese feed companies are likely to experience good growth opportunities abroad [2] Group 3: Pet Industry - The export of pet food from China has been growing, with a total export volume of 110,200 tons from January to April 2025, representing a year-on-year increase of 16%, and an export value of 3.22 billion yuan, up 6% [3] - Domestic consumption of pet food remains strong, with online sales of cat and dog food reaching 9.05 billion yuan from January to April 2025, reflecting a year-on-year increase of 17% [3] - The chain rate of pet hospitals in China is still relatively low compared to developed countries, indicating potential for improvement in this area [3]