Hong Kong stock concept tracking | Central document issued! Accelerate the construction of an agricultural power, seed industry independent innovation comprehensive breakthrough future can be expected (with concept stocks)

The Central Committee of the Communist Party of China and the State Council recently issued the "Plan to Accelerate the Construction of an Agricultural Strong Country (2024-2035)". The plan states that by 2027, significant progress will be made in the construction of an agricultural strong country. Comprehensive rural revitalization will make substantial progress, and agricultural and rural modernization will take a new step. By 2035, significant achievements will be made in the construction of an agricultural strong country. Comprehensive rural revitalization will make decisive progress, agricultural modernization will be basically realized, and rural areas will have basic modern living conditions. By the middle of this century, an agricultural strong country will be fully established. Comprehensive rural revitalization and agricultural and rural modernization will be fully realized. The plan also mentions promoting independent innovation in the seed industry. It will thoroughly implement the revitalization action of the seed industry, accelerate the realization of seed industry technological self-reliance and autonomy, and promote the industrialized application of biological breeding. Leading enterprises in agricultural machinery will be cultivated, while the renovation of old agricultural machinery will be accelerated, promoting the comprehensive integration of agricultural machinery and agronomy to increase the mechanization rate of cultivation and harvesting of major crops. In China, as the "core" of modern agriculture, biological breeding is a strategic measure to achieve technological self-reliance in the seed industry and ensure national food security. It has been highly valued. From the proposal at the Central Economic Work Conference in December 2020 to "promote the industrialized application of biological breeding in an orderly manner," to the emphasis in the Central Document No. 1 in 2025 on "continuing to promote the industrialization of biological breeding," the continuous introduction of national policies has provided strong policy support for the development of industrialized biological breeding. In recent years, China's biological breeding industry has continuously innovated and developed. Advanced technologies such as molecular marker-assisted selection and high-throughput screening have been widely used in the field of biological breeding, greatly improving breeding efficiency and accuracy, with improved seed contributing more to food production. Thanks to policy support, technological innovation, and expanding market demand, the scale of the biological breeding market in China continues to grow. Currently, the comprehensive mechanization rate of agriculture in China is between 60% and 70%, mainly consisting of low-end equipment with relatively low efficiency. As the support for modern agriculture continues to increase, the domestic agricultural machinery industry market size and industrial chain competitiveness are expected to accelerate. In this context, under the influence of tariff policies, the prices of major agricultural companies have experienced large fluctuations recently. Against a background of strong external uncertainties, China continues to promote the revitalization of the seed industry and increase production by raising grain yields. With a focus on strengthening domestic food security, the commercialization of genetically modified seeds continues to advance, with genetically modified seeds being able to sell at a higher premium compared to traditional seeds, thereby driving leading seed companies to achieve higher profits. It is advisable to pay attention to leading seed companies with first-mover advantages and core breeding advantages. Zheshang believes that with the decrease in market risk appetite and an increase in defense demand, the market style may require a "high-quality and low-risk" approach. The agricultural sector is currently at a low level in terms of location and expectations, and with the uncertainty of tariffs, facing supply-side disruptions, it has a relatively advantageous economic situation. Future attention should be paid to import substitution and technological breakthroughs. Using cutting-edge biological breeding technology to improve grain yields is an important measure to support national food security and reduce external dependence on agricultural products. With the commercialization of genetically modified seeds in China, it is recommended to focus on leading seed companies with leading research capabilities and core genetically modified advantages. Related concept stocks: - FIRST TRACTOR (00038): As a leading tractor company in China, the company achieved operating income of RMB 11.904 billion in 2024, a year-on-year increase of 3.26%; net profit attributable to shareholders of the listed company was RMB 922 million, a year-on-year decrease of 7.52%. In 2024, the company sold 74,300 large and medium-sized tractors, an increase of 2.73% year-on-year. - CHINA BLUECHEM (03983): The company mainly engages in the production of urea, methanol, phosphate fertilizers, and compound fertilizers. In 2024, the company achieved sales revenue of RMB 11.946 billion, a decrease of 8.03% year-on-year; the net profit attributable to owners of the company was RMB 1.071 billion, a decrease of 55.02% year-on-year. - SINOFERT (00297): The company mainly engages in the sale of fertilizers, as well as providing technical research and services related to the fertilizer business. In 2024, the company's turnover was RMB 21.265 billion, a decrease of 2.13% year-on-year; the profit attributable to shareholders was RMB 1.061 billion, an increase of 69.69% year-on-year.