Key events in the report describe the signing of cooperation agreements between Young Eagle Farming and Animal Husbandry and Shaxian Snack Group Co., Ltd. and other parties. The incident review company plans to subscribe for 45% of Shaxian Investment's shares through a capital increase of not less than 90 million yuan (Shaxian Investment is a wholly-owned subsidiary of Shaxian Snack Group, and its main business scope is Shaxian snack industry chain supply services, product development, food processing and industry guidance funds, etc.). At the same time, Weikede Technology, a holding subsidiary of the company, plans to jointly invest with Shaxian Snack Group Cultural Tourism Co., Ltd. and other parties to establish Shaxian Snack Media Tourism and Culture Co., Ltd. and other parties. Among them, Weikede Technology plans to invest 45 million yuan, with a 45% shareholding ratio. We believe that investing in Shaxian County has further improved the company's industrial chain layout. Shaxian Snack Group currently plans to launch a nationwide “Shaxian Snack” brand-driven strategy to upgrade 60,000 Shaxian snack stores across the country. This cooperation clearly stipulates that the company and its holding subsidiaries have priority supply rights for pork products used in Shaxian snack stores after the transformation has been completed. This will greatly expand the company's sales channels, and the productivity utilization rate of the slaughter business may be greatly increased; at the same time, the company has the right to free access to paper advertisements for the company's products in non-media businesses in stores, making marketing methods more diversified, which is conducive to the further improvement of the Hinako Company and the further improvement of the brokering company and Sales volume of cooked food products. Overall, we believe that investing in Shaxian County has strengthened the company on the downstream food side and further improved the layout of the industrial chain. The company's future outlook is as follows: 1. Against the backdrop of stricter environmental protection policies and cautious farmers' supplementary sentiment, it is expected that later breeding sows will continue to hover at a low level or even lower than expected, and pig prices will continue to be bullish next year; 2. As the negative effects of pig house renovation gradually recede, the pig house renovation and upgrading is expected to be completed by the end of the year. Overall, the company expects to keep 3 and 5 million pigs in 2016 and 17, and asset-light operations will also reduce the company's breeding costs, which is estimated to be 60 yuan/3; the company has already saved 60 yuan/3 heads; Establishing an agricultural industry Funds and e-sports industry funds. In the future, the company's integration of upstream and downstream mergers and acquisitions in the farming industry chain and external expansion may accelerate. The e-sports sector may become an important puzzle for the company in the future, and the possibility of further integration of its e-sports and e-commerce resources is not ruled out. Give it an “Overweight” rating. The company's 2016 and 2017 EPS are expected to be 0.41 yuan and 0.45 yuan respectively, giving the company an “increase in holdings” rating. Risk warning: 1. The rise in pig prices fell short of expectations; 2. The number of pigs released by the company fell short of expectations.