天马科技20240723

Summary of the Conference Call for Tianma Technology Company Overview - Company: Tianma Technology - Industry: Aquaculture and Feed Production Key Points Financial Performance - For the first half of 2024, the company reported a revenue of 3.009 billion (30.09亿元), a year-on-year decrease of 9.81% [4] - The net profit attributable to shareholders was 56.069 million (5606.93万元), an increase of 299.42% year-on-year, indicating a turnaround from losses [5] - In Q2 2024, revenue was 1.65 billion (16.5亿元), down 8.7% year-on-year but up 21% quarter-on-quarter [1] - The net profit for Q2 was over 49 million (4900多万), with a significant quarter-on-quarter increase of 651% [1] Business Segments - Aquaculture: The company focuses on eel farming, achieving a historical high initial volume of 7617.88 tons in the first half of 2024, with exports accounting for 72% and self-use for 28% [6][17] - Feed Production: The feed segment saw a total sales volume of 612,424 tons, a year-on-year decrease of 14% due to reduced downstream aquaculture capacity and weak terminal consumption [11][16] - Food Business: The company has established a comprehensive ecosystem for eel-related food products, achieving sales of 2128.93 tons in the first half of 2024, surpassing the total sales for 2023 [10][19] Market Dynamics - The gross margin for eel farming remains high at approximately 32% [7] - Due to a significant reduction in global eel fry supply, prices for live eels in Japan have increased by 40% over two months, with a price increase of around 45,000 (4.5万元) per ton [8][25] - The company is optimistic about the future market conditions for live eel sales, with ongoing price adjustments being implemented by farmers and processing plants [8] Strategic Developments - The company is enhancing its production capacity and expanding its strategic sales network across China, aiming to become the largest supplier of specialty aquatic feed globally [12] - Plans are in place to establish a base in Shandong for exporting live eels, which could significantly increase profit margins compared to domestic sales [33][34] Challenges and Risks - The feed business is facing challenges due to increased competition and a decline in overall industrial feed production, which decreased by 4.1% nationally [11] - The company anticipates that the ongoing high temperatures in Q3 may affect production volumes, but expects to maintain a stable growth trajectory [21] Future Outlook - The company projects a continued increase in production and sales volumes, with expectations to maintain a total output of over 15,000 tons for the year [21] - The management is confident in the long-term stability of prices in the eel industry, especially with potential regulatory changes in Japan affecting fry exports [50][52] Additional Insights - The company is actively working on establishing a long-term pricing mechanism in collaboration with major industry players to stabilize market conditions [26][29] - The management highlighted the importance of maintaining a balance between supply and demand to avoid market volatility [56] This summary encapsulates the key insights from the conference call, focusing on Tianma Technology's financial performance, business segments, market dynamics, strategic developments, challenges, and future outlook.