Group 1 - The stock price of Yisheng Co. is reported at 9.36 yuan as of August 12, 2025, reflecting a decline of 0.85% from the previous trading day, with a trading range of 6.89% and a transaction volume of 375 million yuan [1] - Yisheng Co. is a core enterprise in the upstream of the white feather broiler industry chain, primarily engaged in breeding chickens, chick sales, and broiler farming [1] - The poultry industry is significantly influenced by supply-demand dynamics and seasonal factors, impacting product pricing [1] Group 2 - Recent industry data indicates that the price of white feather broiler chicks has been rising in August, with market expectations potentially reaching annual highs [1] - By the end of July, the transaction price for chicks had increased to 2.95 yuan per chick, with enterprise quotes reaching 3.4 yuan per chick, driven by reduced industry capacity and back-to-school stocking demands [1] - Restrictions on imported chicken have also provided support to the domestic market [1] Group 3 - On August 12, the net outflow of main funds was 25.97 million yuan, accounting for 0.37% of the circulating market value; however, there was a slight net inflow of 826,900 yuan over the past five days [1]

Core Viewpoint - The A-share chicken sector is experiencing a rebound, with the white feather broiler market showing signs of recovery, particularly in chick prices, which are expected to reach new highs in August [1][3]. Industry Summary - The white feather broiler industry faced a significant price drop in June, with chick prices hitting a low of 0.73 yuan per chick, but began to recover in July due to reduced hatchery output and rising prices of broilers [1][2]. - As of July 31, the mainstream market price for white feather broiler chicks rose to 2.95 yuan per chick, with enterprise quotes increasing to 3.4 yuan per chick [1]. - The parent stock of white feather broiler chicks decreased by 2.13% in July, with an expected further decline of 1.54% in August, leading to lower hatchling output compared to the previous year [2]. Demand and External Factors - The demand for chicks is increasing due to seasonal factors, such as school preparations, and the correlation between chick and broiler prices is driving up demand as broiler prices rise [2][3]. - External factors, including strict regulations on Thai poultry exports and ongoing import restrictions from Brazil, are contributing to a positive sentiment in the chick market, with broiler prices increasing by 500 to 1000 yuan per ton [2]. Company Performance - Major companies in the white feather broiler sector, such as Shandong Minhe Livestock and Poultry Co., reported a 26.87% increase in chick sales in July, although revenue decreased by 27.3% [3]. - Yisheng Livestock and Poultry Co. also saw a 7.51% increase in chick sales, but a significant revenue drop of 46.39%, indicating the ongoing impact of the market downturn on company performance [3].

Group 1 - The price of commodity broiler chicks has surged rapidly since mid to late July, with prices increasing from 1.5 yuan per chick at the beginning of July to 4.2 yuan per chick currently, representing a 180% increase [1] - The price of broiler chickens has also seen significant increases, with prices in Shandong dropping to a low of 3 yuan per jin in early July and then rising to a peak of 3.7 yuan per jin in August due to supply shortages [1] - Affected by these price changes, A-share market stocks related to the chicken industry experienced volatility, with companies like Xiaoming Co. and Minhe Co. seeing substantial intraday gains [1] Group 2 - In Jiangsu Huai'an, the demand for broiler chicks has increased, leading to a supply shortage and rising prices [2] - A management representative from a chicken breeding base in Huai'an noted that their facility can raise around 1 million broiler chicks per batch, but extreme measures were taken in July to reduce losses, resulting in a supply gap in August [4] - The recent drop in temperatures has made conditions more favorable for broiler chicken growth, contributing to the rapid price increases [6] Group 3 - In Shandong, the price of broiler chicks has increased by 300% over the past month, with farmers purchasing new chicks at significantly higher prices [7] - The rise in meat chicken prices, which increased by 15% in July, is driving farmers to replenish their stocks, while the supply from hatcheries is decreasing [9] - The average price of domestic white feather meat chicken products rose from 8260 yuan per ton to 8420 yuan per ton in July, boosting the purchasing enthusiasm of slaughterhouses [11] Group 4 - Industry statistics indicate a 0.95% decrease in the supply of commodity broiler chicks in July, with an expected further decline of 1.54% in August [12] - High temperatures earlier this year have led to a 15% decrease in chick survival rates, exacerbating supply tightness [12] - The overall update rate of grandparent meat breeding chickens has decreased by 36.72% year-on-year in the first half of the year, which will impact future supply of parent and commodity broiler chickens [12]

Investment Rating - The industry investment rating is "Positive" (maintained) with a key recommendation for the "platform + ecosystem" service-oriented enterprise Dekang Agriculture and Animal Husbandry [3] Core Viewpoints - The report emphasizes the ongoing transformation of the pig industry policy, highlighting the importance of high-quality development and the need for cost control and capacity management [4][5][17] - The report suggests that the industry is entering a high-quality development phase, with expectations for improved profit margins and a focus on technology-driven and service-oriented companies [17] - The report identifies potential investment opportunities in leading companies such as Muyuan Foods and Wens Foodstuffs, as well as Dekang Agriculture and Animal Husbandry [17] Summary by Sections 1.1 Pig Industry - Recent pig prices are at 13.72 CNY/kg (down 0.02 CNY/kg MoM), with average slaughter weight slightly decreasing to 127.8 kg (down 0.18 kg MoM) [4][16] - The Ministry of Agriculture and Rural Affairs emphasizes reducing breeding stock and controlling new capacity, with a focus on improving the entire industry chain's competitiveness [5][16] - The report anticipates further policy measures to stabilize pig prices and control production capacity, recommending Dekang Agriculture and Animal Husbandry as a key player [17] 1.2 Poultry - The report notes a persistent contradiction of "high capacity, weak consumption" in the white feather chicken industry, with a focus on improving return on equity (ROE) [18] - Key recommendations include focusing on leading companies in the integrated supply chain and those with strong breeding capabilities [18] 1.3 Feed - The report highlights positive price trends in aquatic products, with significant year-on-year increases in various fish species [20] - It recommends Haida Group due to its improved management effectiveness and capacity utilization, expecting it to exceed growth expectations [20] 1.4 Pet Industry - Online sales growth in the pet industry has slightly slowed, with notable performance from brands like Guibao and Zhongchong [21][22] - The report suggests that long-term impacts from tariff uncertainties are limited, with leading companies expected to maintain high growth rates [22] 1.5 Agricultural Products - The report discusses uncertainties in soybean imports and the rising prices of natural rubber, with a focus on macroeconomic conditions affecting the agricultural sector [23] 2. Market and Price Situation - The report notes that the agricultural index rose by 2.52% during the week, with the pet food sector performing the best at +5.41% [24]

Group 1 - The A-share market for chicken industry stocks experienced a significant rally, with companies like Xiaoming Co. rising nearly 14%, Minhe Co. up over 8%, and Yisheng Co. increasing by nearly 6% [1] - The price of white feather chicken has seen extreme fluctuations, dropping below 3 yuan per jin in early July, leading to deep losses in the industry. To mitigate excess supply, some breeding farms have resorted to extreme measures such as culling breeding chickens [1] - By August, the price of毛鸡 surged to a peak of 3.7 yuan per jin, while chick prices skyrocketed from 1.5 yuan per chick to 4.2 yuan per chick, marking an increase of 180%. The demand for chicks remains high despite the price surge [1] - Since July, domestic chick prices have entered a rising trend, with a staggering increase of 300% in Shandong, a major meat chicken production province, over just a month [1]

Core Viewpoint - The Chinese livestock industry is experiencing a phase of high pig production capacity, prompting the Ministry of Agriculture and Rural Affairs to implement comprehensive production capacity regulation to mitigate risks of price volatility and overproduction [1][2]. Group 1: Market Performance - As of August 12, 2025, the CSI Livestock Breeding Index (930707) increased by 0.68%, with notable gains from companies such as Xiaoming Co. (300967) up 6.50%, Minhe Co. (002234) up 6.19%, and Yisheng Co. (002458) up 3.28% [1]. - The Livestock ETF (159867) rose by 0.46%, marking its third consecutive increase, with the latest price at 0.65 yuan [1]. Group 2: Policy and Regulation - The Ministry of Agriculture and Rural Affairs has announced plans to guide the reduction of approximately 1 million breeding sows to prevent production fluctuations and price instability [1]. - A meeting held on July 23 emphasized strict implementation of production capacity regulation measures, including the rational elimination of breeding sows and control of new production capacity [1]. Group 3: Industry Outlook - Recent policies are expected to accelerate the elimination of inefficient production capacity in the industry, potentially leading to a long-term increase in pig prices, benefiting low-cost and high-quality pig enterprises [1]. - The top ten weighted stocks in the CSI Livestock Breeding Index account for 64.83% of the index, indicating a concentrated market structure [2].

Group 1 - The poultry concept stocks experienced a rise, with Xiaoming Co., Ltd. increasing by over 11% [1] - Minhe Co., Ltd. saw an increase of nearly 6% [1] - Yisheng Co., Ltd. and Xiangjia Co., Ltd. both rose by nearly 3% [1]

Core Viewpoint - The poultry industry, particularly the white feather chicken sector, has experienced a rapid price increase in chick and broiler chicken markets, transitioning from a period of low prices and overcapacity to a situation of supply shortages and rising prices [1][4][6]. Price Trends - The price of commodity chick has surged from 1.5 yuan per chick in early July to 4.2 yuan per chick by August 11, marking a 180% increase [2][4]. - Broiler chicken prices in Shandong dropped to 3 yuan per pound in early July but have since risen to 3.55 yuan, with some slaughterhouses paying as much as 3.7 yuan per pound [2][4]. Supply and Demand Dynamics - The poultry industry has seen a significant shift in supply dynamics due to previous overproduction and recent weather changes, leading to increased demand for chicks as temperatures cool and schools prepare for the new term [4][5]. - The supply of commodity chicks decreased by 0.95% in July, with expectations of a further decline in August [5]. Profitability Across the Supply Chain - As of August 5, profitability across the poultry supply chain is positive, with theoretical profits of 0.50-0.80 yuan per chick at the breeding level, 1.73 yuan per commodity chicken, and 0.36 yuan per chicken at the slaughtering level [3]. Market Influences - The increase in prices is attributed to reduced imports of chicken meat due to avian influenza and trade tensions, alongside a decrease in domestic production capacity [4][6]. - The overall inventory of chicken products has decreased significantly, with slaughterhouse stocks dropping from high levels in mid-July to lower levels currently [3]. Future Outlook - Despite the current price increases, there are concerns about long-term sustainability due to potential overcapacity and weak terminal demand, which may pressure prices downward in the future [6].

Sales Performance Summary - In July 2025, the company sold 56.96 million white feather broiler chicks, generating sales revenue of 100.56 million yuan, representing a year-on-year change of -46.39% in revenue and a decrease of 6.18% in sales volume [2] - The sales of the company's 909 small white feather broiler chicks amounted to 5.12 million, with sales revenue of 5.06 million yuan, showing a year-on-year decline of 34.02% in revenue and a decrease of 26.69% in sales volume [2] - The company sold 8,171 breeding pigs in July 2025, with sales revenue of 19.48 million yuan, reflecting a significant year-on-year increase of 1,680.16% in revenue [2] Reasons for Sales Changes - The decrease in sales revenue for white feather broiler chicks in July 2025 is attributed to a lower selling price compared to the previous year [2] - The industry has seen early culling of parent stock due to low prices for white feather broiler chicks, but there has been a recent increase in the price of live chickens since late July 2025 [3] - Following the end of high-temperature weather, there has been an increase in the enthusiasm for restocking among farms, leading to a surge in demand for chick sales, which has resulted in a rapid increase in the selling price of white feather broiler chicks [3]

Group 1 - The company announced the sales quantity of broiler chicks for July 2025 to be 56.9624 million, with a sales revenue of 100.5635 million yuan [1] - Year-on-year changes in sales quantity and revenue are 7.51% and -46.39% respectively [1] - Quarter-on-quarter changes in sales quantity and revenue are -6.18% and -22.32% respectively [1]