The terms of Aonong convertible debt are set in a regular manner, and the debt bottom is well protected.

The convertible bond project raised $1 billion to invest in the pig breeding base project and repay bank loans, with a dilution rate of 9.88%. The interest rate clause is at the average level of the market, and the terms are set in a proper manner. The value of pure debt is 94.95 yuan, and the debt bottom is well protected. At present, it has a strong stock nature.

The double main industry develops agriculture and animal husbandry enterprises, and the prospect of accelerating the release of production capacity is expected.

The company is the "feed + breeding" double main industry to develop agricultural and animal husbandry enterprises. With fierce competition and increasing concentration in the feed industry, head feed enterprises are expected to benefit. The concentration of the pig farming industry is low, the government has vigorously promoted large-scale farming, the production capacity of the company breeding sector has been accelerated, and the prospect of highly flexible enterprises can be expected. On the whole, the performance of the company is greatly affected by pig price, attach importance to scientific research and innovation, enhance competitive advantage, continuous equity incentive, and high team stability.

Investment suggestion: the stock is highly flexible, and it is recommended to pay active attention to it.

Generally speaking, the scale of Aonong convertible bond issuance is moderate, the balance of 1 billion provides sufficient liquidity, and the rating is OK. All the additional terms and conditions of convertible bonds are well regulated, and the protection of the debt bottom is better. Zhenggu Aonong biology is the double main business of "feed + breeding" to develop agricultural and animal husbandry enterprises. At present, the feed industry is showing a trend of large-scale and intensive development, and the company is expected to expand its market share by virtue of its mature production technology. The biggest focus lies in the potential of pig farming business. When the inflection point of the pig cycle is approaching, Aonong biology has high flexibility. Affected by the linkage of stock and debt, the rising range of convertible bonds will be larger, and the price of investment will be higher.

Risk Tips:

The risk of rising raw material prices; the expansion of pig production is not as expected; the outbreak of animal epidemic.