巨星农牧220241031

Summary of the Conference Call for Juxing Agriculture and Animal Husbandry Q3 2024 Company Overview - Company: Juxing Agriculture and Animal Husbandry - Industry: Agriculture, specifically pig farming Key Financial Highlights - Revenue: For the first nine months of 2024, the company reported a revenue of 3.955 billion yuan, representing a year-on-year increase of 31.59% [1] - Net Profit: The net profit for the same period was 259 million yuan, a significant increase of 175.7% year-on-year [2] - Q3 Profit: In Q3 alone, the company achieved a profit of 304 million yuan [2] Operational Performance - Pig Production: The company reported a total of 1.7964 million pigs slaughtered in the first nine months, with 1.7335 million being market pigs, marking a 32.62% increase year-on-year [2] - Q3 Slaughter Volume: In Q3, 700,000 pigs were slaughtered, with 670,000 being market pigs [2] Cost Structure - Cost of Production: The complete cost in Q3 was reported at 7.04 yuan per kilogram, with production costs at 6.5 yuan per kilogram [3][4] - Cost Breakdown: The production cost included piglet costs of 1.29 yuan and feed costs of 3.62 yuan per kilogram [3] - Future Cost Projections: The company aims to reduce costs to below 7 yuan per kilogram by optimizing production and sourcing strategies [4][5] Strategic Outlook - Focus on Pig Farming: The company will continue to focus on pig farming while ensuring financial safety and high-quality growth [2] - Production Goals: The target for 2025 is to reach a slaughter volume of 4 million pigs [5][6] - Cost Management: The company aims to maintain a cost curve that trends downward while increasing production scale [5] Market and Industry Insights - Market Conditions: The company anticipates continued pressure on supply in the upcoming quarters, which may affect pricing [10][11] - Future Pricing: The management believes that despite potential price drops, profitability will be maintained due to effective cost management [11] Additional Insights - Leather Business: The leather segment reported a loss of 73 million yuan in Q3, with a total loss of 70 million yuan for the first nine months [9][16] - Insurance and Risk Management: The company has implemented price insurance for pigs, which has provided some financial relief against losses [20] - Production Efficiency Metrics: Key performance indicators such as weaning costs and survival rates have shown improvement, with a weaning cost of 258-279 yuan and a PSY (pigs per sow per year) of 29.3 [8] Conclusion - Investment Outlook: The management's focus on cost control, production efficiency, and strategic growth positions Juxing Agriculture and Animal Husbandry favorably within the industry, despite challenges in the market [30][31]