Huaxi Securities: Maintains a "buy" rating on Xiaoming Stock, with the expectation that sales of its main products will further increase.

According to the research report of Huaxi Securities, Xiaoming Co., Ltd. achieved a net profit attributable to the parent of 183 million yuan in the first three quarters of 2025, a year-on-year increase of 2,243.97%, realizing a significant turnaround from loss to profit. Among them, in the third quarter of 2025, the net profit attributable to the parent was -1.6568 million yuan, a year-on-year decrease of 108.03%. The performance of the third quarter was under pressure due to downstream drag, and market share is prioritizing a reversal. Since the second half of 2024, due to the decrease in feed raw material prices, the increase in profits of downstream egg production, and the impact of restrictions on previous breeding, the prices of the company's main product, commercial parent chicks, have been rising in the first and second quarters of 2025. Since the third quarter, the downstream losses of egg production have affected the company, causing the price of chicklings to fall. In 2023, the company completed the construction of projects such as the Red Temple Agricultural Industry Demonstration Park, the Southern Breeding Center Phase I, and the Red Temple Ancestor Breeding Base using its own funds. With the release of production capacity from the company's projects, the production and sales volume of the company's main products are expected to further increase. The rating of "accumulate" is maintained.