The Zhitong Finance App learned that Dekang Agriculture and Animal Husbandry (02419) rose by more than 5%. As of press release, it had risen 5.14% to HK$54.25, with a turnover of HK$28.5565 million.
According to the news, pig prices have continued to pick up since August and have remained above 11 yuan/kg for many days. As of August 25, the average price of three-yuan pigs nationwide was 11.13 yuan/kg, up more than 7.54% from the beginning of this month. Yan Facheng, a pig market analyst at Zhuochuang News, said that compared with July, the hot weather abated in August, household consumption of fresh meat rebounded markedly, and white stripe sales improved markedly. At the same time, group activities such as college entrance banquets, opening banquets, and wedding banquets have increased, driving a rise in demand for pigs from group meal channels.
In the first half of this year, the full cost of Dekang agricultural and animal husbandry commercial pigs was 11.89 yuan/kg, a year-on-year decrease of about 0.6 yuan/kg. With technological innovation+lean operation driving efficiency and cost reduction, the company maintains industry leadership in total cost and profit efficiency. Single loss is superior to peers, and its cyclical resilience is outstanding. Huatai Securities believes that the trend of accelerated production capacity removal and medium- to long-term pig prices bottoming out is quite clear. The pig breeding sector may face the time of allocation, and the company's breeding costs maintain a comparative advantage and there is still room for optimization, so long-term growth is worth looking forward to.