Key investment points
Events
The Ministry of agriculture and rural areas issued the revised versions of four regulations, namely, the administrative measures for the safety evaluation of agricultural genetically modified organisms, the examination and Approval Measures for major crop varieties, the administrative measures for the production and operation license of crop seeds and the provisions on the naming of agricultural plant varieties, which will be officially implemented as of January 21, 2022.
Comments
The key points of this amendment are as follows: (1) improve the requirements for GM application. (2) Improve the test requirements of transgenic varieties. (3) Improve the application conditions for the production and operation license of genetically modified crop seeds. (4) Strengthen the supervision and inspection of genetically modified crop seeds.
Investment advice
We believe that it is more likely to realize seed production of genetically modified corn and soybean in 2022. The scope and varieties of seed production may be expanded in 2023, and the charging method of genetically modified traits may be further implemented within the year. We believe that companies with a leading layout in biological breeding are expected to gain a first mover advantage or benefit from the increased concentration brought about by the commercialization of genetically modified organisms. We recommend continuing to pay attention to Beijing Dabeinong Technology Group Co.Ltd(002385) , Yuan Longping High-Tech Agriculture Co.Ltd(000998) .
Risk tips
Covid-19 epidemic spread risk, international climate change risk, policy implementation less than expected risk, etc.
