Yuehai Feeds Group(SZ:001313)2022-10-29 11:10Group 1: Company Overview - Guangdong Yuehai Feed Group Co., Ltd. is a leading enterprise in aquatic feed research, production, and sales, with annual sales exceeding 1 million tons [1] - The company specializes in various aquatic feeds, including shrimp feed and marine fish feed, and ranks among the top three in the specialty aquatic feed industry [1] Group 2: Market Challenges - The aquatic feed industry has faced significant challenges this year, including a 20%-30% increase in raw material prices such as grains, soybean meal, and fish meal [1] - Adverse weather and disease have also impacted the company's net profit, leading to a noticeable decline compared to the same period last year [3] Group 3: Performance and Adjustments - In Q3, the company achieved a net profit of 97.2 million yuan, a 1.33% increase year-on-year, with a gross margin around 10% [3] - Sales volume for specialty aquatic feed reached 260,000 tons, while regular aquatic feed sales were 150,000 tons in Q3 [3] Group 4: Strategic Initiatives - The company implemented significant organizational changes to enhance market engagement and customer service, which improved operational performance [3] - Adjustments to product formulations and production techniques were made to standardize quality and control costs [3] Group 5: Capacity Expansion Plans - Current production bases are established in multiple provinces, with ongoing projects to expand capacity, including a 150,000-ton facility in Zhongshan and a 120,000-ton facility in Hainan [4] - Future plans include further capacity enhancement and exploring upstream and downstream business opportunities in the aquatic industry [4] Group 6: Industry Outlook - The company maintains a cautiously optimistic outlook for shrimp and specialty fish feed in the coming year, driven by increasing consumer demand for high-protein aquatic products [5] - Innovations in farming techniques, such as high-density and factory farming, are expected to boost production levels and farmer engagement [5] Group 7: Risk Management - The company is focused on reducing credit impairment losses, primarily from accounts receivable, with a bad debt rate around 1% [6] - Strategies include enhancing cooperation with banks to provide financial support to farmers and implementing a standardized credit assessment system [6]