益生股份20241122

Summary of the Conference Call Company and Industry Overview - The conference call was held by Yisheng Co., a leading company in the breeding and supply of poultry genetics in China, established in 1989. The company focuses on the breeding of high-quality poultry and has a significant market share in both breeding and meat production sectors in China and Asia [1][2]. Key Financial Highlights - In the third quarter, the company sold over 3 million sets of parent stock with a cost of approximately 17 RMB per set and a selling price of nearly 50 RMB, resulting in a profit of 100 million RMB [2]. - The total sales of commercial broiler chicks reached 1.5 billion pounds, with a cost of less than 2.7 RMB and a selling price of around 2.9 RMB, yielding a profit of over 30 million RMB [2]. - The total profit for the first three quarters was 300 million RMB, with expectations of selling over 300 million sets of parent stock and 1.4 billion commercial chicks in the fourth quarter [2]. Supply and Demand Analysis - The supply of breeding stock is tight due to a significant reduction in breeding stock imports since May 2020, with the company holding a 40% market share of the national breeding stock [3][4]. - The demand for chicken remains strong, driven by the expansion of the poultry industry and consumer trends favoring chicken over other meats due to its nutritional advantages and cost-effectiveness [4][5]. - The company anticipates that the price of chicken will remain favorable, influenced by factors such as the growth of the takeaway food industry and changing consumer preferences [5][6]. Performance and Market Trends - The performance of breeding stock has reportedly declined, with higher mortality and disease rates affecting production [9][15]. - The company expects a continued tight supply of commercial chicks into 2024, with production levels influenced by the previous year's breeding stock availability [8][26]. - The overall market for chicken is projected to grow, with increasing per capita consumption in China, which rose from 13 kg in 2014 to 18 kg in 2023 [13]. Future Outlook - The company plans to increase its production capacity for commercial chicks in 2024, with new facilities coming online in regions like Shanxi and Hebei [10][24]. - The company aims to expand its parent stock and commercial chick production to reach a target of 1 billion chicks within five years [25]. - The market for poultry is expected to remain competitive, with ongoing adjustments in breeding practices and potential changes in import policies affecting supply dynamics [17][24]. Additional Insights - The company noted that the performance of imported breeding stock remains superior to domestic varieties, which may impact pricing strategies and market share [21][22]. - The company is also monitoring international breeding stock import policies, particularly from the U.S. and Europe, which could influence future supply chains [24]. This summary encapsulates the key points discussed during the conference call, highlighting the company's performance, market dynamics, and future strategies in the poultry industry.