Tai Mei Ti A P P·2025-11-07 13:23Core Viewpoint - The pig farming industry is facing significant challenges as it enters the fourth quarter, with rising sales but declining revenues due to falling pig prices below cost levels and ongoing supply pressures [2][9]. Group 1: Sales and Revenue Trends - Many listed pig companies reported significant sales increases in October, with companies like Muyuan Foods (牧原股份) selling 7.076 million pigs, a year-on-year increase of 13.17%, but with a sales revenue decline of 22.28% to 10.331 billion yuan [3][4]. - Wens Foodstuff (温氏股份) sold 3.8928 million pigs in October, with a revenue of 5.048 billion yuan, reflecting a year-on-year sales increase of 45.69% but a revenue decline of 13.15% [4]. - New Hope (新希望) reported sales of 1.6851 million pigs, a 34.44% increase, but a revenue drop of 7.83% to 1.918 billion yuan [5]. Group 2: Profitability and Financial Health - The third quarter saw 19 out of 22 listed pig farming companies report a year-on-year decline in net profit, with 9 companies incurring losses. The total net profit for these companies was 5.684 billion yuan, down 35.86% from the previous quarter [7][8]. - Wens Foodstuff's third-quarter revenue was 25.937 billion yuan, a 9.76% decline, marking its first quarterly revenue drop in 2024, with a net profit decrease of 65.02% [7]. Group 3: Industry Challenges and Price Trends - The average price of pigs has been declining since September, reaching a low of 11.87 yuan/kg by November 17, down 30.26% year-on-year [9][11]. - The industry is experiencing negative profitability, with average losses of 185.68 yuan per pig for self-bred pigs and 289.07 yuan for purchased piglets as of late October [11]. Group 4: Capacity and Policy Responses - Despite ongoing capacity control policies, the reduction in the number of breeding sows has been minimal, with the total number of breeding sows only decreasing by 0.2% by the end of the third quarter [12]. - The government has mandated a reduction of 1 million breeding sows among 25 leading companies by January 2026, but the effectiveness of these measures remains to be seen [12][13]. Group 5: Cost Management Strategies - Leading companies like Muyuan Foods have successfully reduced their breeding costs from 13.1 yuan/kg in January to 11.6 yuan/kg by September, a decrease of approximately 11.5% [14][17]. - The primary costs in pig farming are feed and piglet costs, with feed accounting for over 60% of total costs. Recent trends show a decline in feed prices, which could help mitigate some financial pressures [14][16].