京基智农20251204

Summary of the Conference Call for Jingji Zhino (京基智农) Company Overview - Jingji Zhino is a leading player in the pig farming industry, recognized as a key agricultural enterprise in Guangdong Province and has been designated as a national pig production capacity regulation base [2][3]. Financial Performance - In 2024, the company plans to sell 2.146 million pigs, generating nearly 3.9 billion yuan in sales revenue [2]. - For the first ten months of 2025, the company reported revenue of 4.082 billion yuan, with the pig farming segment contributing 3.168 billion yuan, accounting for 78% of total revenue [3]. - The company’s asset-liability ratio stands at 59.3%, with total assets of 10.4 billion yuan and liabilities of 6.1 billion yuan [2][3]. - The average selling price of pigs is 14.7 yuan/kg, while self-raising costs are 12.88 yuan/kg, indicating effective cost control [2][5]. Strategic Initiatives - The company aims to increase pig output to 2.6 million by 2026, with total costs controlled around 12 yuan/kg [5][11]. - To address industry downturns and falling pig prices, the company is focusing on cost reduction, utilizing unrecognized assets valued at 450 million yuan, and optimizing production capacity [2][6]. - The company has introduced a mature team for its IP business, aiming to diversify profit sources through a light-asset model [6][7]. Project Developments - The Shajing project is expected to launch in the second half of 2026, with a projected value of 4-5 billion yuan, potentially improving cash flow significantly [4][8]. - The project will generate approximately 3-3.75 billion yuan in cash flow after accounting for a 25% income tax [8]. Cost Management - The company is actively working to optimize its asset-liability ratio and has seen a consistent decline in this ratio over recent years [9]. - Regional cost variations exist, with costs for different projects ranging from 11.5 yuan/kg to 14 yuan/kg [10]. Production Efficiency - The company has improved production metrics, with a PSY (pigs weaned per sow per year) nearing 27 and aims to enhance this further [10][11]. - The company has implemented high-standard biosecurity measures, particularly in response to African swine fever and winter disease prevention [12][13]. Market Outlook - Despite current challenges in the pig farming industry, the company remains confident in its self-breeding model and geographical advantages to navigate through this cycle [14][15]. - The company believes it has strong long-term growth potential, supported by solid cash reserves and a clear project path [15].