NEW HOPE(SZ:000876)2022-12-05 02:01Group 1: Company Overview - The company is New Hope Liuhe Co., Ltd., with stock code 000876 [1] - The company has established an integrated poultry industry chain, including feed production, breeding, farming, technical services, food processing, and terminal sales [3][4] Group 2: Poultry Industry Impact - The poultry industry has been significantly affected by the H7N9 avian flu outbreak, leading to a decline in performance compared to the previous year [3] - From June 2017, poultry prices began to recover, but were still insufficient to reverse the downturn experienced in the first half of the year [3] Group 3: Pig Farming Models - The company employs four pig farming models: 1. New Good Model (Xiajin Model) - breeding and high-efficiency parent stock production [4] 2. New Six Model - contract farming with family farms using quality piglets from New Hope Liuhe [4] 3. New Road Model - management services for medium-sized independent pig farms [4] 4. Fuda Pig Model - technical services for existing small pig farms to enhance user engagement [4] Group 4: Growth Projections - In 2016, the company’s total pig output exceeded 1.1 million heads, with a target of 2-2.5 million heads in 2017 and 5-6 million heads by 2018 [5] - By 2020, the expected pig output is projected to reach 10 million heads [5] Group 5: Regional Layout and Cost Control - The main pig farming regions include the Bohai Rim, Guangdong, East China, and Southwest regions, with a total production capacity of 9 million heads [6] - The average cost of live pigs is approximately 12 RMB per kilogram, with an expected average price of 14 RMB in 2017 [6] Group 6: Meat Processing Business - The company’s meat processing business has shown growth in both sales and profits in the first half of 2017, despite lower overall pork prices compared to the previous year [6] Group 7: Food Business Development - The food business is a long-term transformation direction for the company, focusing on optimizing product and channel structures [7][8] - The company has invested in food safety and has been recognized in both domestic and international markets [7] Group 8: Future Investments - The company plans to continue investing in quality food and restaurant enterprises to facilitate its transformation into a food company [8] - The company anticipates a significant upgrade from frozen to fresh products within the next 3-5 years, driven by advancements in cold chain logistics [8]