Zhongjin: Wen's Group's sales volume of pigs and chickens has reached a historic high, and the cost advantage continues to deepen.

The report from Zhongjin Company pointed out that Wenshi Stock announced a profit forecast of 5-5.5 billion yuan for 2025, which is in line with market expectations. The company's net profit attributable to the parent company for 2025 is forecasted to be 5-5.5 billion yuan, a decrease of 40%-46%, mainly due to the fall in livestock and poultry prices. Calculated at the midpoint of the forecast, the net profit attributable to the parent company for the fourth quarter of 2025 is expected to be -260 million to +250 million yuan, with the main pressure coming from the low pig prices in the fourth quarter. The sales volume of pigs and chickens has reached record highs, and the cost advantage continues to deepen. The company's strategy has shifted from "scale growth" to "quality improvement", anchoring the new positioning of "growth, technology, green, responsibility, and high quality" for Wenshi. At the same time, the company is strengthening its supporting businesses, building an industry chain ecosystem, leading the development of the farming industry with a new paradigm of promoting shareholder returns, and leading the way. In consideration of the adjustment of profit forecasts and the central value of the head per capita market value, the target price is maintained at 25 yuan, corresponding to 26/27 times P/E for 32/22 in 26/27, with a 47% upside potential.