CMS·2025-05-14 23:32Investment Rating - The investment rating for the poultry farming industry is "Strongly Recommended" for key companies such as Shengnong Development, Wens Foodstuffs, and Lihua Co., Ltd. [2][32] Core Insights - In April 2025, chicken prices for both yellow feather and white feather chickens showed signs of recovery, leading to significant improvements in the profitability of the farming sector. The holiday consumption supported this price increase, and leading companies optimized their sales structures to achieve better product premiums [1][8]. - The report highlights that the breeding costs for leading yellow chicken enterprises have decreased to low levels, and with the seasonal price recovery, there is potential for substantial profit release [1][8]. - The supply of chicken chicks is currently abundant, with a slight price increase observed. The average price of chicken chicks in April was 2.87 yuan per chick, down 13% year-on-year but up 2.1% month-on-month [9][10]. Summary by Sections White Feather Chicken - The average price of white feather chicken in April was 7.42 yuan per kilogram, a year-on-year decrease of 5.4% but a month-on-month increase of 4.1%. The average price of chicken products was 8913 yuan per ton, down 7% year-on-year and 0.9% month-on-month [8][9]. - The profitability of the breeding sector is gradually improving, with leading companies like Shengnong Development achieving better sales prices compared to the industry average [8][10]. - The demand for quality parent stock chicken chicks is expected to remain strong in 2025, with supply tightening in the second half of the year due to decreased overseas imports [10][32]. Yellow Feather Chicken - The average price for fast-growing yellow feather chickens in April was 4.84 yuan per jin, down 6.3% year-on-year and 1.3% month-on-month, while the price for slow-growing chickens was 8.17 yuan per jin, down 1.4% year-on-year but up 16% month-on-month [21][24]. - The report indicates a divergence in price trends between fast and slow-growing chickens, suggesting improved household consumption driven by holiday demand [21][25]. - The breeding costs for yellow feather chickens have decreased significantly, with costs for leading companies like Wens and Lihua dropping to around 5.6 yuan and 5.5 yuan per jin, respectively [25][32]. Investment Recommendations - The report recommends focusing on the white chicken breeding sector due to its favorable outlook, particularly for integrated leading companies like Shengnong Development [32]. - For yellow feather chickens, the report suggests that the current low levels of parent stock will support future price increases, with companies like Lihua Co., Ltd. and Dekang Agriculture being highlighted as key investment opportunities [32][33].