Core Viewpoint - The under-forest economy is increasingly recognized for its role in promoting ecological protection and economic development, contributing to rural revitalization and aligning with the "Two Mountains" theory [1][2]. Group 1: Economic Impact - The under-forest economy has an annual output value of approximately 1 trillion yuan, benefiting millions of forest farmers [3]. - It provides new income channels for farmers in mountainous and forested areas, enhancing their financial stability and stimulating local economies [1][3]. Group 2: Environmental Benefits - The under-forest economy adheres to ecological principles, promoting sustainable practices such as the integration of planting and breeding, which reduces chemical fertilizer and pesticide use [2]. - It transforms natural landscapes into economic opportunities through activities like forest tourism and wellness, contributing to the green upgrade of the tertiary industry [2]. Group 3: Development Strategies - Effective policies are needed to tailor the development of the under-forest economy to local conditions, avoiding a one-size-fits-all approach [3]. - Strengthening support through research and promotion of key technologies, as well as providing training and market information, is essential for enhancing the economic value of under-forest products [3]. - Fostering brand development and integrating the under-forest economy with tourism and cultural industries can extend the value chain and maximize benefits [3].

Core Insights - The under-forest economy is increasingly recognized for its role in promoting the transformation of "two mountains" and achieving a balance between ecological protection and economic development, as highlighted in key government documents [1][2][3] Group 1: Economic Impact - The under-forest economy has an annual output value of approximately 1 trillion yuan, benefiting millions of forest farmers and contributing to poverty alleviation [3] - It provides a new income channel for farmers in mountainous and forested areas, enhancing their financial stability and stimulating local economies [1][3] Group 2: Environmental Benefits - The under-forest economy aligns with the principles of green development, emphasizing ecological balance and the sustainable use of resources, which reduces chemical fertilizer and pesticide usage [2] - It promotes biodiversity and maintains the ecological functions of forests while converting ecological advantages into economic benefits [1][2] Group 3: Development Strategies - Effective policies are needed to tailor the development of the under-forest economy to local conditions, avoiding a one-size-fits-all approach [3] - Strengthening support through technology research, product processing, and social services is essential for enhancing the economic value of under-forest products [3] - Fostering brand development and integrating the under-forest economy with tourism and cultural industries can further enhance its value chain and market competitiveness [3]

Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company has shown a stable main business with a total cash dividend of 245 million yuan over the last three accounting years, indicating a commitment to returning value to shareholders [3] - The frozen products business remains the primary revenue source, contributing 82.64% of total revenue in 2024, although it has seen a decline in revenue [4] - The livestock farming business is expected to expand, with projected annual output increasing to 870,000 pigs by 2025, which could enhance the company's performance [6][7] Summary by Sections Financial Performance - In 2024, the company achieved operating revenue of 2.336 billion yuan, a year-on-year decrease of 16.29%, and a net profit attributable to shareholders of 122 million yuan, down 42.79% [2] - The first quarter of 2025 saw operating revenue of 509 million yuan, a decrease of 8.54%, but net profit increased by 1.70% to 14 million yuan [2] Business Segments - The frozen products segment generated 1.930 billion yuan in revenue in 2024, down 20.66% year-on-year, while the cold storage business contributed 91 million yuan, down 6.35% [3] - The livestock farming segment reported revenue of 177 million yuan, a decrease of 4.66%, but its revenue share increased by 0.92 percentage points [3] Dividend Policy - The company plans to distribute a cash dividend of 1.20 yuan per 10 shares, totaling 70.05 million yuan, with a payout ratio of 57.53% for 2024 [3] Future Projections - Revenue forecasts for 2025-2027 are 2.530 billion yuan, 2.788 billion yuan, and 2.813 billion yuan, respectively, with net profits expected to rise to 211 million yuan, 265 million yuan, and 302 million yuan [7] - The earnings per share (EPS) are projected to be 0.36 yuan, 0.45 yuan, and 0.52 yuan for the years 2025, 2026, and 2027, respectively [7]