立华股份20260112

Summary of Li Hua Co., Ltd. Conference Call Company Overview - Company: Li Hua Co., Ltd. - Industry: Poultry and Swine Farming Key Points 2025 Performance Highlights - Broiler Chicken Sales: Increased by 62% in 2025, with slaughter volume doubling to approximately 90 million birds [2][3] - Pork Production: The number of pigs slaughtered rose from 1.3 million to 2.1 million, marking a 62% increase [3] - Profitability: Despite low prices in the first half of 2025, the company achieved overall profitability due to price recovery starting in August [3] - Cost Control: Effective cost management led to only minor losses in the pork segment during some months of the second half of 2025 [3] 2026 Outlook - Broiler Chicken Growth: Expected sales growth to slow to 6%-8% in 2026, with increased focus on fresh and processed products to enhance value [2][3] - Pork Production Plans: Plans to further increase slaughter volume and improve capacity utilization in 2026 [2][3] Cost Structure - Broiler Chicken Costs: The complete cost of raising broiler chickens was 5.5 CNY per pound in the first half of 2025, fluctuating due to feed prices but stabilizing back to 5.5 CNY by December [2][4] - Pork Production Costs: Costs for pork production were slightly above 6 CNY per pound in November and December 2025, with a target to reduce costs below 6 CNY by 2027 [5] Market Dynamics - Industry Trends: There is a trend of smaller farms exiting the market due to lack of significant growth, while larger companies like Li Hua are expanding their market share [6] - Cost Advantages: Li Hua's cost advantages are attributed to effective management across the supply chain, allowing for increased market share [6] Production Metrics - Swine Production Metrics: - PSY (Pigs per Sow per Year) reached above 28 - Feed-to-Meat Ratio is approximately 2.56 - Overall survival rate is about 89%, with over 95% for market pigs [7] Cost Reductions - Weaned Pig Costs: Costs for weaned pigs have decreased to approximately 270-280 CNY [8] Disease Management - Epidemic Control: Minimal impact from sporadic disease outbreaks, with effective management strategies in place [10] Pricing Strategy - Price Focus: The company is not overly concerned with market price fluctuations, focusing instead on cost control and operational plans [11] Slaughter Business Contribution - Profitability of Slaughter Segment: Losses in the slaughter business are narrowing, with new retail opportunities emerging in major urban areas [12] Capital Expenditure Plans - Future Investments: Planned capital expenditures will focus on breeding farms, feed mills, and processing facilities, with an emphasis on core business development [13]