Investment Rating - The report assigns an "Accumulate" rating for the agricultural sector [6] Core Insights - The report highlights a continued optimistic outlook for agricultural products due to ongoing international conflicts, which are expected to drive prices upward [3] - The domestic pet market is experiencing rapid growth, with companies like Zhongchong Co. and Guai Bao Pet at low valuation levels, presenting investment opportunities [4] - The livestock sector is facing challenges with high weights and low prices, particularly in the pig market, where prices are expected to remain depressed [5] Summary by Sections Planting Sector - The report maintains a positive outlook for agricultural prices, particularly for major crops like soybeans, corn, and wheat, with current prices at 4,277 CNY/ton for soybeans, 2,453 CNY/ton for corn, and 2,588 CNY/ton for wheat [3] - The ongoing conflict in the Middle East is expected to increase demand for vegetable oil raw materials due to rising energy prices [3] - Recommended companies include Kangnong Seed Industry, which leads in corn seed variety iteration, and Nopson, which is expected to benefit from blueberry sales growth [3] Livestock Sector - The average weight of pigs at market is currently 128.71 kg, with prices continuing to decline, leading to a negative outlook for the sector [5] - The report suggests that rising feed costs due to higher corn prices will further pressure the livestock industry [5] - Recommended stocks in this sector include Muyuan Foods, Wens Foodstuff Group, and New Hope Liuhe [5] Pet Sector - The domestic pet market is growing rapidly, with major pet exhibitions in cities like Beijing and Shenzhen showcasing the industry's vitality [4] - Companies with overseas production capacity and increasing orders are expected to perform well despite currency fluctuations [4] - Key investment opportunities highlighted include Guai Bao Pet and Zhongchong Co., both of which are at low valuation levels [4] Key Company Profit Forecasts and Valuations - The report provides earnings per share (EPS) and price-to-earnings (PE) ratios for several companies, with recommendations to accumulate shares in companies like Muyuan Foods (PE 9.40), Wens Foodstuff Group (PE 13.11), and Kangnong Seed Industry (PE 11.05) [36]

Investment Rating - The report maintains an "Overweight" rating for the agriculture sector, indicating a positive outlook compared to the benchmark index [43]. Core Insights - The report highlights that the international regional conflicts are driving an upward trend in agricultural product prices, particularly affecting planting costs due to disruptions in fertilizer supply [3]. - In the livestock sector, pig prices are at a low point, with a current price around 10 CNY/kg, and the supply pressure is greater than the recovery in demand [4]. - The pet industry is expected to grow, supported by large domestic exhibitions and increasing revenue growth from local brands [2]. Summary by Sections Planting - The Middle East conflicts are causing global agricultural supply and demand fluctuations, with significant impacts on fertilizer supply and increased planting costs. Recent price increases include corn at 2,447 CNY/ton (up 1.2%), wheat at 2,578 CNY/ton (up 1.4%), and soybean meal at 3,439 CNY/ton (up 8%). The report remains optimistic about the agricultural price boom benefiting planting companies and recommends leading corn seed company Kangnong Seed [3]. Livestock - Pig prices continue to decline, currently around 10.2 CNY/kg, with increasing average weights at slaughter. The demand recovery is insufficient to counterbalance supply pressures, leading to continued price pressure. The report notes that while piglet sales are still profitable, prices are gradually decreasing, and the expectation of capacity reduction will persist [4]. Pet Industry - The report notes the successful launch of major pet exhibitions, such as the Shenzhen Pet Expo, which featured 10,000 brands. The growth of domestic pet brands is a key indicator of investment value in this sector [5]. Key Company Recommendations - Recommended stocks in the pig sector include Muyuan Foods, Wens Foodstuff, and New Hope. For the agricultural product chain, recommended stocks include Morning Light Bio, Noposion, and Kangnong Seed. In the pet sector, recommended stocks include Guobao Pet and Petty Holdings [5][37].

本公告乃四川德康農牧食品集團股份有限公司（「本公司」，連同其附屬公司，「本集 團」）作出的自願公告。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部 分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 DEKON FOOD AND AGRICULTURE GROUP 四川德康農牧食品集團股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代碼：2419） 自願公告 2026年2月運營快報 本公司董事會（「董事會」）謹此宣佈，本集團2026年2月的主要運營數據（未經審核） 如下： 生豬板塊 | | | | | | 商品肉豬 | | --- | --- | --- | --- | --- | --- | | | 商品肉豬銷量 | | 商品肉豬銷售收入 | | 平均售價 | | | | | | | （人民幣元 | | | （千頭） | | （人民幣百萬元） | | ╱公斤） | | | 本期間數量 | 本年累計數量 | 本期間金額 | 本年累計金額 | | | 2026年1月 | 968.89 | ...

Investment Rating - The industry rating is "Outperform the Market" [4] Core Insights - The pig price has dropped to a new low of 10.29 CNY/kg, with significant losses in breeding, indicating a weak market trend [2][9] - The beef market is showing signs of recovery with rising prices for imported frozen products and calves, suggesting a long-term upward trend in meat and milk prices [3][29] - The poultry sector is experiencing a decline in broiler prices and fluctuating chick prices, with potential impacts from limited overseas breeding imports [3][41] - The release of the 2026 No. 1 Document emphasizes the promotion of biological breeding industrialization, which is expected to benefit leading seed companies [3][52] Summary by Sections Pig Farming - Pig prices continue to decline, reaching 10.29 CNY/kg, with breeding profits for self-bred and purchased piglets at -237.98 CNY and -58.89 CNY per head respectively [2][9] - Slaughter volumes have slightly increased due to seasonal demand, with a weekly average of 130,700 pigs slaughtered, up 17.28% week-on-week [11] - The average weight of pigs at slaughter has risen to 128.15 kg, indicating increased market supply pressure [16][27] Cattle Farming - The beef market is stable, with calf prices rising to 33.99 CNY/kg, supported by increased demand and limited supply [3][29] - Imported beef prices are also on the rise, with Brazilian cuts priced at 60.32 CNY/kg, reflecting a 2.01% increase week-on-week [29] Poultry Sector - Broiler prices have decreased to 7.20 CNY/kg, while chick prices are fluctuating around 2.85 CNY each, influenced by seasonal demand and feed price increases [39][41] - The market is facing challenges due to limited overseas breeding imports, which may affect supply dynamics [41] Seed Industry - The 2026 No. 1 Document focuses on enhancing agricultural modernization and promoting biological breeding, which is expected to accelerate the adoption of genetically modified crops [52][55]

Investment Rating - The industry investment rating is "Overweight" [6] Core Insights - The report highlights opportunities in the agricultural sector due to rising agricultural product prices, particularly in planting and pet sectors, while the pig farming sector is facing challenges due to low prices [2][3][5] Summary by Sections Planting Sector - The report is optimistic about the improvement in planting sector conditions, with corn prices reaching 2418 CNY/ton, a weekly increase of 1.5%, and wheat prices at 2542 CNY/ton, up 0.3% week-on-week. The report anticipates that the favorable grain price environment will benefit planting companies through 2026. It continues to recommend leading corn seed company Kangnong Seed Industry [3][4]. Breeding Sector - The pig farming sector is currently experiencing low prices, with the national average price at a historically low level. The report expects a continued weak demand post-holiday and an oversupply situation, leading to an accelerated reduction in breeding capacity in March. Data shows a limited decline in breeding sows, with a slight increase of 0.39% month-on-month in February [4][12]. Pet Sector - The report notes that exchange rate factors may impact short-term export performance, but domestic market growth remains promising. The pet market is expected to benefit from upcoming large pet exhibitions in cities like Beijing and Shenzhen. Key indicators for evaluating pet companies include revenue growth and gross margin levels [5][30]. Investment Recommendations - Recommended stocks in the pig farming sector include Muyuan Foods, Wens Foodstuff Group, and Shennong Group. For the post-cycle sector, recommended stocks include Keqian Biology and Haida Group. In the agricultural product supply chain, recommended stocks are Morning Light Bio, Noposion, and Kangnong Seed Industry. In the pet sector, recommended stocks include Guibao Pet and Zhongchong Co. [5][30][31].

Core Viewpoint - Lihua Co., Ltd. (300761.SZ), a leading domestic yellow feather chicken breeding company, has reported disappointing earnings forecasts for 2025, with a projected net profit decline of over 60% compared to the previous year, contrasting sharply with a fourfold increase in the same period last year [1][10]. Group 1: Financial Performance - The company expects a net profit attributable to shareholders of between 5.5 billion and 6 billion yuan for 2025, representing a year-on-year decline of 60.55% to 63.84%. The forecasted net profit after deducting non-recurring items is between 5.3 billion and 5.9 billion yuan, down 61.04% to 65% year-on-year [2][12]. - In 2019, the company achieved peak performance with revenues of 88.7 billion yuan and a net profit of 18.62 billion yuan. By 2024, revenue had increased to 177.2 billion yuan, nearly doubling since 2019, but net profit had declined to 15.14 billion yuan, about 80% of the 2019 figure [4][14]. - The company reported a significant drop in profitability, with a gross margin of 15.92% in 2024, down approximately 12 percentage points from 2019. The gross margin further declined to 9.94% in the first three quarters of the previous year, compared to 25.78% in the same period of 2019 [8][18]. Group 2: Business Operations and Challenges - The decline in profitability is attributed to the company's aggressive expansion in breeding operations despite a generally weak market for both chicken and pork, leading to rapidly increasing costs that have severely eroded profits [5][16]. - The company sold 567 million chickens in 2025, a nearly 10% increase year-on-year, but the average selling price of live chickens fell by 11.9% to 11.4 yuan per kilogram, negatively impacting profitability [3][13]. - The company has been expanding its pork business, selling 2.1116 million pigs in 2025, a significant increase, but the average selling price dropped by approximately 19.94% to 13.85 yuan per kilogram. Despite lower profitability per pig, the increase in sales volume and a decrease in breeding costs led to a rise in operational profits for the pork segment [3][13]. Group 3: Strategic Initiatives - To mitigate cyclical pressures in the industry, the company has been transitioning its sales model for yellow feather chickens and actively developing its slaughtering business. However, progress has been slow, with processed chicken products accounting for less than 16% of total chicken sales by 2025 [1][11]. - The company aims to develop a slaughtering capacity that will account for about 50% of total output in the next five years, but as of 2025, only approximately 15.87% of total chicken sales will come from processed products [19][20]. - The slaughtering business has not yet turned a profit, although losses have been narrowing, indicating that it may take time before this segment can significantly support overall company performance [9][20].

Core Viewpoint - The recent focus of Dekang Agriculture and Animal Husbandry is on share buybacks and January sales data disclosure [1][2] Group 1: Share Buyback and Sales Data - The company repurchased 49,300 shares at a price range of HKD 70.100-71.100 per share, totaling HKD 3.4749 million on February 10, 2026 [1] - From February 5 to February 9, the company repurchased a total of 114,400 shares, spending HKD 8.1453 million [1] - In January 2026, the company sold 1.04236 million live pigs, generating sales revenue of approximately RMB 1.654 billion, with an average selling price of RMB 12.74 per kilogram, reflecting a month-on-month increase of 5.90% [1] - The company sold 6.57277 million yellow feathered chickens, with sales revenue of about RMB 240 million and an average price of RMB 14.53 per kilogram, showing a month-on-month decrease of 7.16% [1] Group 2: Operational Performance - January 2026 operational data indicates stable sales volume for live pigs, with a month-on-month price increase for commodity pigs, while prices for yellow feathered chickens have decreased [2] - The high proportion of sales revenue from live pigs reflects the resilience of the main business, with price fluctuations linked to industry cycle changes [2] - The company aims to reduce the cost of live pigs to below RMB 14 per kilogram, which requires monitoring of subsequent cost control progress [2] Group 3: Stock Performance - Over the past seven trading days (February 6 to February 13, 2026), the stock price of Dekang Agriculture and Animal Husbandry fluctuated by 4.84%, closing at HKD 72.60 on February 13, 2026, a slight increase of 0.41% from the opening price of HKD 71.00 on February 9 [3] - The stock reached a daily high of HKD 73.30 on February 12 and a low of HKD 69.80 on February 11, with a trading volume of approximately HKD 1.3 billion [3] - Technical indicators show the current stock price is near the middle band of the Bollinger Bands, with the MACD indicator showing a mild upward trend [3] Group 4: Institutional Insights - Institutions are focusing on the regional advantages and cost control capabilities of Dekang Agriculture and Animal Husbandry [4] - As a leading player in the Southwest, the company plans to increase its output by 3 million heads in 2026, building on a 2025 output of 18 million heads and a market share exceeding 10% [4] - Current institutional ratings are predominantly "buy" or "hold," with 75% of institutions expressing an optimistic outlook in February [4]

Group 1 - The company, Dekang Agriculture (02419), reported sales of 1.04236 million pigs in January 2026, with approximately 968,900 being market pigs, generating sales revenue of about RMB 1.654 billion [1] - The average selling price of market pigs in January 2026 was RMB 12.74 per kilogram, reflecting a 5.90% increase compared to December 2025 [1] - The company sold 6.57277 million yellow-feathered broilers in January 2026, resulting in sales revenue of approximately RMB 240 million [1] Group 2 - The average selling price of yellow-feathered broilers in January 2026 was RMB 14.53 per kilogram, which represents a 7.16% decrease from December 2025 [1]

Core Viewpoint - Dekang Agriculture and Animal Husbandry (02419) reported significant sales figures for January 2026, indicating a mixed performance in its pork and chicken segments [1] Sales Performance - In January 2026, the company sold 1.04236 million live pigs, with approximately 968,900 being market pigs, generating sales revenue of about RMB 1.654 billion [1] - The average selling price for market pigs in January 2026 was RMB 12.74 per kilogram, reflecting a 5.90% increase compared to December 2025 [1] Poultry Sales - The company sold 6.57277 million yellow-feathered broilers in January 2026, resulting in sales revenue of approximately RMB 240 million [1] - The average selling price for yellow-feathered broilers in January 2026 was RMB 14.53 per kilogram, which represents a 7.16% decrease from December 2025 [1]

Core Viewpoint - Dekang Agriculture and Animal Husbandry (02419.HK) reported significant sales figures for January 2026, indicating a mixed performance in its livestock segments [1] Group 1: Sales Performance - In January 2026, the company sold 1,042.36 thousand live pigs, including 968.89 thousand market pigs, generating a revenue of RMB 1.654 billion [1] - The average selling price for market pigs in January 2026 was RMB 12.74 per kilogram, reflecting a 5.90% increase compared to December 2025 [1] Group 2: Poultry Sales - The company sold 6,572.77 thousand yellow-feathered broilers in January 2026, resulting in a revenue of RMB 240 million [1] - The average selling price for yellow-feathered broilers in January 2026 was RMB 14.53 per kilogram, which represents a 7.16% decrease from December 2025 [1]