Yuehai Feeds Group(SZ:001313)2024-10-30 14:44Group 1: Cost and Sales Trends - The main raw materials for special aquatic feed are animal-based, with fishmeal, soybean meal, and flour prices declining since the second half of 2023. It is predicted that fishmeal prices will further decrease by 2025, leading to lower costs for aquatic animal farming, especially for special aquatic feed [1] - In Q3, the sales growth rates for sea bass, yellow croaker, and live fish were 24%, 41%, and a decline for yellow croaker feed, respectively [1] - Shrimp and crab feed sales saw a slight decline of nearly 20% year-on-year in Q3, with shrimp feed accounting for over 20% of total feed sales [1] Group 2: Mergers and Acquisitions - The company has completed acquisitions of Yixing Tianshi Feed Co., Ltd. and I&V Bio Asia Co., Ltd., which are related to its main business and have strong competitiveness and sustainability [2] - The rationale for acquisitions over direct purchases includes the strong product competitiveness and management capabilities of the acquired companies, allowing for deep cooperation and mutual development [2] - Tianshi is a leading producer of betaine and various feed additives, with 50%-60% of its revenue coming from exports to over 70 countries [2] Group 3: Future Market Outlook - The demand and prices for special aquatic products are expected to gradually increase in 2025, supported by favorable national policies and technological advancements [3] - The company plans to focus on acquisitions for overseas capacity building, with Vietnam being a strategic location for expanding into Southeast Asia [3] - The company aims to maintain strict credit management for accounts receivable, with a focus on effective control and recovery mechanisms [4] Group 4: Production Capacity and Strategy - The current domestic feed production capacity is over 200,000 tons, with actual capacity reaching over 150,000 tons. New production facilities are being established to meet future market demands [4] - The company emphasizes a strategy of "proximity to market" for production base layout, ensuring flexibility to adapt to market orders [4] - The company is committed to maintaining high product quality and developing innovative products to enhance market competitiveness [5]