Shares of COFCO JOYCOME (01610.HK) surged 5.32% in pre-market trading on Tuesday, following a bullish research report from CICC that maintained an outperform rating and significantly raised the target price for the stock. The surge comes as investors react positively to the company's improved performance and optimistic outlook in the pig farming and meat processing sectors.

CICC, in its latest research report, raised its target price for COFCO JOYCOME by 39% to HK$2.5, representing a 33% upside potential. The investment bank maintained its outperform rating on the stock, citing improved liquidity and attractive valuations in Hong Kong's pig farming sector. CICC's target price corresponds to 14x and 9x price-to-earnings ratios for fiscal years 2025 and 2026, respectively.

The positive sentiment is largely driven by COFCO JOYCOME's strong performance in the first half of 2025. The company reported a 19.8% year-over-year increase in revenue to RMB8.963 billion, with net profit before biological asset fair value adjustments rising to RMB198 million. CICC highlighted several factors contributing to the company's growth, including stable pig farming production, cost improvements, and significant loss reduction in the fresh meat business. Additionally, the company's expansion of its "company + farmer" model and the success of its brand-led strategy in the fresh pork segment have further bolstered investor confidence. As COFCO JOYCOME continues to optimize its operations and explore asset-light farming models, analysts expect the company to maintain its growth trajectory, potentially supporting increased slaughter volumes of 5-6 million heads in 2025.