China Galaxy Securities: AI + Agriculture Reconstructing the Industry Chain, Intelligent Assistance Boosting Efficiency Improvement in Livestock Industry.

China Galaxy Securities released a research report stating that with the spillover of technology, the phenomenon of finding application scenarios on the consumer end is becoming increasingly common. From the perspective of supporting the industrialization of AI development, in recent years, policies have encouraged technology to lead consumer upgrades, with increasing support. From the perspective of AI + agriculture, we are still in the early stages of intelligent development. The firm predicts that artificial intelligence is the core DRIVE of the new round of transformation in the animal husbandry industry. Intelligent farming will extend from single technology applications to the digitization of the entire industry chain, gradually transitioning from "experience-driven" to "data-driven", helping agriculture to be efficient, green, and sustainable. The main points of China Galaxy Securities are as follows: AI + agriculture will be an important direction for exploration and development: In the past three years, the focus of global technology has been on AI big data models and Siasun Robot & Automation technology. With the spillover of technology, the phenomenon of finding application scenarios on the consumer end is becoming increasingly common. From the perspective of supporting the industrialization of AI development, in recent years, policies have encouraged technology to lead consumer upgrades, with increasing support. Policies will gradually focus on exploring the potential for intelligent development in various aspects of the consumer domain and encourage innovation and upgrading of AI + consumption. From the perspective of AI + agriculture, we are still in the early stages of intelligent development. Different types of enterprises have different focuses in terms of research and development, production, channels, and marketing. For example, in pet enterprises, in terms of product research and innovation, sales channels, and terminal marketing, different degrees of potential and opportunities combined with AI have emerged. In the case of pig farming, production management has become a core link in the industry chain, therefore, pig enterprises have invested heavily in the comprehensive digitization of smart farming in order to improve breeding efficiency and reduce costs. AI + the pet industry, exploring new consumption models: 1) AI + pet medical care, reconstructing the industry value chain. Through data analysis, image recognition, intelligent monitoring, and other technologies, AI + pet medical care can significantly improve diagnosis and treatment efficiency and accuracy. Head enterprises such as NewRay Peng improve diagnosis and treatment efficiency through intelligent medical decision-making systems. 2) AI + pet care, creating intelligent and healthy new experiences. The combination of AI and pet care is reshaping daily pet care, behavior management, and health monitoring through intelligence and data means, forming a digital care system covering the entire lifecycle. Currently, the application of daily health management intelligence is relatively advanced, including intelligent nutrition management, environmental health monitoring, etc. 3) AI + pet marketing, reshaping media-led transformation and upgrading. AI will bring profound changes to the consumer industry chain, affecting the efficiency and creativity of all aspects of the industry chain. AI + pig breeding, intelligent leading transformation and upgrading: The new round of information technology revolution represented by the Internet of Things, cloud computing, big data, and artificial intelligence is driving the transition of extensive traditional animal husbandry breeding to intelligent animal husbandry breeding that is knowledge-based, technological, and modernized. The Internet of Things provides the data foundation for smart animal husbandry, cloud computing and big data are important means of intelligent analysis of animal husbandry data, and artificial intelligence is the core DRIVE of the new round of animal husbandry industry transformation. In the digital age, the mode of pig farming and management will usher in a new wave of reforms, reducing reliance on human labor and subjectivity, improving the health of pig herds, and overall upgrading breeding efficiency. By applying unmanned environmental control platforms, automatic inspection and alarm systems, intelligent feeding systems, labor productivity can be increased by more than 30%, reducing the cost of each pig by around 150 yuan. Investment recommendations (1) The pet industry is booming, and the integration of AI + pet is showing a trend of diversified development, accelerating industry innovation. Considering the potential for upgrading pet care concepts, AI + pet will reshape pet care standards and may become an important pillar of the global intelligent consumption market. (2) Intelligent farming will extend from a single technology application to the digitization of the entire industry chain, gradually transitioning from "experience-driven" to "data-driven", helping agriculture to be efficient, green, and sustainable. Risk warning Risks include: AI + consumer experience falling short of expectations; consumer demand not meeting expectations; increased industry competition, etc.