Core Insights - Dekang Agriculture has successfully transitioned from a heavy asset model to a light asset model in pig farming, becoming a leading example in China's agricultural sector [1] - The company has achieved significant growth in pig production, with a projected output of 8.78 million pigs in 2024, up from 1.37 million in 2020, showcasing its cost advantages and operational efficiency [1][2] Group 1: Business Model and Performance - Dekang's light asset model has resulted in a low investment, high turnover, and high return pig farming system, with a per-head profit of 403 RMB in 2024 [1] - The company's return on equity (ROE) and return on invested capital (ROIC) are 38% and 29% respectively, outperforming other major players in the industry [1] - The total cost of pig farming for Dekang is estimated at 13.6 RMB per kilogram in 2024, positioning it among the top tier of listed pig farming companies [1] Group 2: Management and Strategic Development - The management team has over 30 years of experience in the agricultural sector, with a focus on breeding and technology services, which has allowed the company to adapt to industry changes effectively [2] - Dekang has established a robust breeding system and team, maintaining an average R&D expense ratio of 1.2% since 2018, which is leading among listed companies [2] - The company has innovatively developed the "No. 2 Farm" model to address challenges in traditional pig farming, ensuring higher income for contract farmers even during financial pressures [2]
德康农牧(2419.HK)：从追赶到超越