Shennong Group(SH:605296)2022-11-17 14:40Group 1: Market Overview - The recent pig price has rebounded, with the average sales price for pigs in the second quarter at approximately 16 RMB/kg [1] - The annual output of pigs in Yunnan can reach around 40 million heads, leading to lower prices compared to other provinces [5] Group 2: Cost Management - The company aims to control total costs at around 16 RMB/kg for 2022 despite rising feed raw material prices [1][2] - The company is adjusting feed formulas and expanding procurement channels to manage costs effectively [1] Group 3: Production Capacity - The average pigs per sow (PSY) is currently around 27, with some farms reaching up to 30 [2] - The company plans to expand the number of breeding sows to approximately 60,000 by the end of 2022, supporting a target of 1.5 million pigs for 2024 [3] Group 4: Capital Expenditure - Total capital expenditure across various business segments is expected to remain under 1 billion RMB for the year [3][4] - Significant projects include a 500,000-ton feed and biosecurity center, and a new slaughterhouse project [3] Group 5: Competitive Landscape - The company maintains a competitive edge in Yunnan due to strategic site selection and integrated operational models [5] - The company has established partnerships for feed procurement, ensuring competitive pricing [5]