CICC: Maintain Outperform rating on China Agri-Industries Holdings Limited (01610.HK) and raise target price to 2.5 Hong Kong dollars.

According to Wise Financial News APP, CICC released a research report stating that it maintained the net profit of China National Cereals, Oils and Foodstuffs Corporation (01610.HK) at 7.6/11.5 billion yuan for 2025/26. The current stock price corresponds to a 10/7 times P/E for 2025/26, maintaining an outperform rating. The bank believes that the improvement in liquidity will boost the valuation of the Hong Kong pig industry sector, raising the target price by 39% to 2.5 Hong Kong dollars, corresponding to a 14/9 times P/E for 2025/26, with a potential upside of 33%. The company reported a year-on-year increase in 1H25 revenue of +19.8% to 8.963 billion yuan, with a pre-adjustment net profit of 1.98/3.17 billion yuan before/after fair value adjustment of biological assets, with a year-on-year increase of +5.20/+0.01 billion yuan. The performance meets the bank's expectations, with profit growth due to stable production pace and cost improvement in pig farming; significant reduction in losses in the fresh food business.