The boom in the feed industry is expected to bottom out. Affected by the year-on-year decline in the growth of live pigs, it is expected that the growth rate of sales in the feed industry will continue to be sluggish. Taking the growth rate of production enterprises above designated size as an example, it is expected to remain at around 10%. It is not excluded that single-digit growth in individual months will occur. However, due to the impact of the base, profit pressure will gradually ease after the first quarter. From the industry perspective, the low income growth rate for the whole year may occur in the second quarter or the third quarter, but the low point of profit is likely to appear in the first quarter. The business climate will not continue to decline. The industry is currently showing a pattern of “ice and fireâ€. On the one hand, the general mix of small and medium-sized retail investors as the main target customers is weak and the profitability is not satisfactory. On the other hand, the business line of the scale-based farms with 500-10000 as the target customers still maintains rapid growth. The rapid expansion of the size of the big customers themselves and the stability advantages under the downturn are highlighted. Judging from the situation we have visited, after years of development, some excellent feed enterprises represented by Dabei Nong, Zhengda, etc. have reached maturity in terms of system construction and talent reserve, and they can provide farmers with It is not only limited to the feed itself, but is a comprehensive service that covers products, services, information, management, finance and promotion. Because such services have the important characteristics of “quantitative†and “evaluable†results, the competition among feed enterprises will further move from “low cost†to “differentiationâ€. Investment Strategy and Suggestions: Our analysis believes that: Dabei Nong (002385, BUY) has accumulated rich experience in serving large customers and has obvious first-mover advantage in platform creation. The company's good cultural atmosphere and active and effective talent incentive system will help the company to obtain and maintain good customer reputation and stickiness. Judging from the situation we visited, the current development momentum with large-scale customers is very rapid, or will support the company to maintain rapid growth in the industry downturn. Short-term industry volatility is not enough to maintain the company's “buy†rating. Related reading: http:// Lishui Aiteli Machine Equipment Co.,Ltd , https://www.aitelimachine.com