CH MODERN D (01117) rose more than 10% during the morning trading session. At the time of writing, the stock was up 8.51%, trading at HK$1.53, with a turnover of HK$347.672 million. The company recently released its full-year results, reporting sales revenue of RMB 126.01 billion. Its gross profit margin increased against the trend by 1.4 percentage points to 27.4%, while cash EBITDA grew 2.6% year-on-year to RMB 3.063 billion. However, due to the impact of changes in the fair value of biological assets and industry cycles, the loss attributable to owners of the company was RMB 1.129 billion. First Shanghai noted that with the absorption of one-time impairment factors, the company is expected to operate with a lighter burden by 2026. Benefiting from revenue elasticity driven by rising meat and milk prices, coupled with expectations for a recovery in the valuation of biological assets, the company's earnings flexibility over the next two years is significant, potentially leading to a Davis double play. It is projected that the company's revenue will grow steadily, and net profit attributable to owners is expected to turn from a loss to a profit, achieving substantial growth. Considering the company's position as an industry leader and its current stock price being in a cyclical bottom area, it offers a high margin of safety and significant upside potential.