Special Topic: Pork Lincomycin Residue Exceeds Standard, Shuanghui Fined Over 120 Million Yuan. For stock trading, read Jinqilin Analyst Reports — authoritative, professional, timely and comprehensive, helping you uncover potential thematic opportunities! Source: Old Stock Investor Value Investing 2026-10-09 Evening Announcement: The company received an "Administrative Penalty Decision" issued by the Luohe City Animal Husbandry Bureau. The company and its relevant directors and senior management received an "Administrative Penalty Decision" issued by the Luohe City Market Supervision Administration. Wangkui Shuanghui Beidahuang Food Co., Ltd. (hereinafter referred to as Wangkui Shuanghui) received an "Administrative Penalty Decision" issued by the Wangkui County Agriculture and Rural Affairs Bureau.

The subsidiary of Henan Shuanghui Investment & Development Co., Ltd. (ASX: 000895), Wangkui Shuanghui, had "pig hind leg meat" with lincomycin residue exceeding the standard, with fines and confiscations exceeding 120 million yuan, which will reduce 2026 net profit by 63.8066 million yuan (approximately 1.23% of 2026E). This excessive residue incident inevitably brings to mind the "clenbuterol" scandal that shook the industry fifteen years ago. In 2011, CCTV's 3·15 Gala exposed "muscle pigs" flowing into Shuanghui. That incident caused Shuanghui's market value to evaporate by over 10 billion yuan, with sales losses exceeding 1.5 billion yuan within half a month, and decades of accumulated brand reputation suffered a severe blow.

The "pig hind leg meat" of Shuanghui with lincomycin residue exceeding the standard — this penalty is quite severe, not only fines and confiscations exceeding 120 million yuan, but more importantly it shakes the foundation of Henan Shuanghui Investment & Development Co., Ltd. (ASX: 000895) in food safety. Whether it will suffer a severe blow like it did 15 years ago remains unknown. First, following tradition, let's look at Shuanghui's basic situation:

One: Financial Report Observation Points and Analysis

Henan Shuanghui Investment & Development Co., Ltd. (000895.SZ), a leader in the domestic meat processing industry. The company's main industries: feed industry, breeding industry, slaughtering industry, meat product processing industry, foreign trade industry. Among them, slaughtering and meat product processing are the two pillar industries. Main products: packaged meat products, fresh pork products, poultry products. For the post-70s and post-80s generations, Shuanghui ham sausage advertisements are deeply ingrained.

Indicator 2022A 2023A 2024A 2025A 2026H1 Total Operating Revenue (100 million yuan) 627.31 600.97 597.15 594.60 280.86 YoY -6.09% -4.20% -0.64% -0.43% -1.16% Net Profit Attributable to Parent (100 million yuan) 56.21 50.53 49.89 51.05 23.06 YoY +15.5% -10.1% -1.26% +2.32% -0.76% Non-GAAP Net Profit Attributable (100 million yuan) ~54 ~47 48.13 49.39 22.86 YoY — — +1.71% +2.63% +3.22% Sales Gross Margin — 17.05% 17.69% 18.31% 19.15% Net Profit Margin Attributable 8.96% 8.41% 8.36% 8.59% 8.21% Weighted ROE — — 23.81% 24.10% 10.68% Basic EPS (yuan) ~1.62 ~1.46 1.44 1.4733 0.6655 Net Operating Cash Flow (100 million yuan) — 33.91 84.16 73.52 16.17 YoY — — +148.4% -12.63% -44.52%

Henan Shuanghui Investment & Development Co., Ltd. (ASX: 000895) currently has an A-share market value of 82.424 billion yuan, with a stock price of 23.79 yuan. (Revenue -1.16%, net profit attributable to parent -0.76%), but non-GAAP +3.22%, gross margin improved, quality better than appearances, mainly due to low pig prices, with meat product costs benefiting. The hidden concern is in Q2 alone: net profit attributable to parent 1.014 billion yuan, -14.5%, dragged down by phased increases in market expenses and approximately 300 million yuan in frozen product impairment provisions. Shuanghui's PB is at the 2.98% historical percentile, with the market's pricing of net assets near historical lows; PE at the 25th percentile is also reasonably low. Thick safety cushion, generous dividends; but revenue/net profit have been near zero growth for consecutive years.

Company Code Market Cap (100 million yuan) PE (TTM) PB Main Business Henan Shuanghui Investment & Development Co., Ltd. (ASX: 000895) 824.24 17.88 3.94 Slaughtering + Meat Products + Breeding Leader Shandong Delisi Food Co., Ltd. (ASX: 002330) ~30 Loss High Low-Temperature Meat Products Shandong Longda Meishi Co., Ltd. (ASX: 002726) ~80 Loss High Slaughtering + Meat Products Jinzi Ham Co., Ltd. (ASX: 002515) ~65 ~70 ~2.5 Ham + Meat Products Shuanghui Development has obvious scale advantages, PE below industry median PE of 32.79, discount of ~45%; PB 3.94: higher than peers, ROE 24.10% extremely high among consumer stocks. High dividends, dividend yield 6.13%, in the A-share essential consumer sector it belongs to the first tier.

Two: Personal Analysis

Scale advantages, low valuation, high dividends — in the face of food safety, these are completely worthless. During the era of Old Wan, I once went to research Henan Shuanghui Investment & Development Co., Ltd. (ASX: 000895). The slaughtering equipment was advanced, automation level high, ham sausage filling automated, quality monitoring strict. It gave me a good impression, feeling like a major enterprise with responsibility. Since the crown prince dispute, to frequent food safety incidents recently, to now the "pig hind leg meat" lincomycin residue exceeding standard incident, my trust in Henan Shuanghui Investment & Development Co., Ltd. (ASX: 000895) under the helm of Little Wan is no longer there. It can only be a one-vote veto. Sina Statement: This news is reproduced from Sina's cooperative media. Sina.com publishes this article for the purpose of conveying more information and does not mean it agrees with its views or confirms its description. The article content is for reference only and does not constitute investment advice. Investors who operate based on this bear their own risks.