MINHE(SZ:002234)2023-04-28 10:18Group 1: Company Performance Overview - In Q1, the sales volume of commodity chick seedlings increased by approximately 10% year-on-year, with an average selling price of over 4 RMB per chick [3] - The parent generation meat chicken project is under construction, with plans to complete all facilities by 2024, aiming to increase production capacity by 100 million chicks by 2025 [3] - The hatchery project is currently under construction, expected to be completed by 2024, in conjunction with the parent chicken project expansion [3] Group 2: Market Trends and Pricing - Chicken prices remained stable in Q1, but the rapid increase in live chicken prices has led to poor slaughter performance [3] - Recent declines in chick prices are attributed to seasonal adjustments and general chicken meat prices [3] - The overall market trend remains upward despite short-term fluctuations [3] Group 3: Investor Q&A Insights - Factors contributing to the strong chick price in Q1 include the certainty of future expectations in the industry and increased enthusiasm among farmers [4] - The expected price increase for chicks in the second half of the year is contingent on the reduction of incremental supply, with a potential turning point anticipated around July-August 2023 [4] - The current overseas breeding situation shows limited supply, with a backlog in orders and difficulty in quickly addressing the existing gap [4] Group 4: Production Capacity and Future Plans - The company currently has a slaughter capacity of approximately 30 million live chickens, translating to over 60,000 tons of production [5] - The cooked food segment has a capacity of 60,000 tons across two factories, with plans to optimize production before considering expansion [5] - The company is focused on maximizing existing production capacity before planning any increases in slaughter capacity [5]