According to the Zhitong Finance APP, Donghai Securities released a research report stating that the Central Document No. 1 emphasizes ensuring national food security and developing new agricultural productivity. This document introduces the concept of &#34;developing new agricultural productivity&#34; for the first time, highlighting technological innovation. Additionally, it proposes stabilizing livestock production capacity and alleviating difficulties in the beef and dairy industries. With the implementation of policy support, production and operational conditions are expected to improve. In terms of seed industry, it is recommended to focus on new agricultural productivity, with the continuous advancement of the biotechnology breeding industry, paying attention to Long Ping High-Tech (000998.SZ), SDDSC (002041.SZ), and DBN Group (002385.SZ).
In the breeding industry, it continues to emphasize steady development, as the pig farming industry enters a stage of competing on operational quality. Companies with strong cost control capabilities can better withstand cyclical fluctuations. It is recommended to actively pay attention to MUYUAN (002714.SZ), Wens Foodstuff Group (300498.SZ), Shennong Group (605296.SH), Juxing Agriculture and Animal Husbandry (603477.SH), and Lihua Group (300761.SZ).
<h2>The main points of Donghai Securities are as follows:</h2>
Event: On February 23, the Central Document No. 1 &#34;Opinions of the Central Committee of the Communist Party of China and the State Council on Further Deepening Rural Reform and Solidly Promoting Comprehensive Rural Revitalization&#34; was released, emphasizing ensuring national food security and developing new agricultural productivity. It is divided into six parts: 1. Continuously enhance the supply guarantee capacity of important agricultural products such as food; 2. Continuously consolidate and expand the achievements of poverty alleviation; 3. Focus on strengthening the county-level industries that enrich the people; 4. Focus on promoting rural construction; 5. Focus on improving the rural governance system; 6. Focus on improving the element guarantee and optimizing allocation system and mechanism.
Emphasizing food security and increasing food yield. (1) Stabilize area, increase yield, and improve quality. The document continues to prioritize ensuring national food security, proposing to stabilize the area of food crops, focusing on increasing yield and quality to ensure stable and abundant food production. Further expand the implementation scale of the food yield enhancement project, increase the promotion of high-yield and efficient models, promote integrated water and fertilizer management, and facilitate large-scale yield increases. Strengthen the implementation of the new round of tasks to increase food production capacity by 100 billion jin. (2) Improve policy support for food production. Implement the minimum purchase price policy for rice and wheat, and improve subsidies for corn and soybean producers, as well as rice subsidies. Encourage local governments to carry out pilot projects for interest subsidies on special loans for grain and oil planting. According to data from the National Bureau of Statistics, in 2024, China's food planting area is expected to be 119.319 million hectares, a year-on-year increase of 0.3%. The yield per unit area is expected to be 5,921 kg/hectare, a year-on-year increase of 1.3%. Both planting area and yield are steadily increasing.
Stabilizing livestock production capacity, with the first mention of alleviating difficulties in the beef and dairy industries. Support for the stable development of the livestock industry is proposed. For pig farming, the focus remains on steady development, with the suggestion to &#34;monitor and regulate pig production capacity to promote stable development.&#34; According to the Ministry of Agriculture and Rural Affairs, as of January 2025, the number of breeding sows in China is expected to be 40.62 million, a month-on-month decrease of 0.4%, indicating a further reduction in capacity. After the holiday, pig prices remain low, and farming profits are narrowing. With the improvement in production efficiency, pig supply is expected to be sufficient by 2025, coupled with a potential rise in feed costs, the industry may enter a capacity reduction cycle, and attention is recommended for the pig farming sector
In addition, this year's No. 1 document has proposed relief measures for the beef and dairy cattle industries for the first time, marking a change from last year. &#34;Promote relief for the beef and dairy cattle industries, stabilize basic production capacity.&#34; The losses in beef and dairy cattle farming are severe, and upstream ranch capacity is gradually being reduced. With the implementation of policy support, the production and operation conditions are expected to improve, and the supply-demand pattern will gradually improve. Attention should be paid to upstream dairy cattle farming enterprises.
For the first time, &#34;develop new quality productivity in agriculture&#34; is proposed, emphasizing technological innovation. The document emphasizes the application of technological innovation in agricultural production, proposing to lead the gathering of advanced production factors through technological innovation and develop new quality productivity in agriculture according to local conditions. It calls for the in-depth implementation of the seed industry revitalization action and continues to promote the industrialization of biological breeding. Support the development of smart agriculture and expand the application scenarios of technologies such as artificial intelligence, data, and low-altitude. The document has mentioned the development of biological breeding for five consecutive years, with the expression regarding the seed industry changing from last year's &#34;promote the industrialization of biological breeding to expand and accelerate&#34; to this year's &#34;continue to promote the industrialization of biological breeding,&#34; indicating an accelerated pace of industrialization in biological breeding, with the industrialization of genetically modified corn and soybeans continuing to advance. Attention should be paid to breeding enterprises.
Risk warning: Epidemic risks, policy advancement not meeting expectations, breeding industrialization not meeting expectations

002041

002385

002714

000998

Donghai Securities released a research report stating that the Central Document No. 1 has proposed the development of new agricultural productivity for the first time, emphasizing technological innovation and food security. With policy support, it is recommended to pay attention to opportunities in the agriculture and animal husbandry sector, particularly in the fields of biological breeding and aquaculture. Recommended companies include Long Ping High-Tech, SDDSC, DBN Group, and MUYUAN. The document is divided into six parts, emphasizing food supply security, consolidation of poverty alleviation achievements, and development of county-level industries

Zhitong

SDDSC

DBN Group

MUYUAN

Long Ping High-Tech

LESHAN GIANTSTAR FARMING&HUSBANDRY

WENS

NH INTELLIGENT

LIHUA

Shennong Group

Donghai Securities: The No. 1 Document first mentions new agricultural productivity; under policy support, focus on opportunities in the agriculture and animal husbandry sector