YISHENG(SZ:002458)2024-03-12 07:28Group 1: Market Trends and Supply Dynamics - The price of broiler chicks is currently at 4.5 RMB per chick, driven by strong demand and tight supply conditions [2] - Since May 2022, the import volume of breeding chickens has significantly decreased due to avian influenza and flight restrictions, impacting the supply of parent breeding chickens [3] - The reduction in parent breeding chicken imports is expected to affect the production of commercial broiler chicks in 2024 and beyond [3] Group 2: Demand Factors - Changing consumer perceptions favor chicken meat due to its nutritional profile, which aligns with healthy eating trends, indicating potential growth in the domestic chicken market [3] - The cost-effectiveness of broiler chickens compared to pork, beef, and lamb positions chicken as a preferred protein source, likely leading to increased consumption [3] - The rise of the takeaway industry and pre-prepared meals, driven by faster lifestyles, is expected to further boost chicken consumption and demand for commercial broiler chicks [3] Group 3: Financial Performance and Projections - The company anticipates a favorable price outlook for broiler chicks in 2024 due to tight supply and increasing demand [3] - The company’s revenue has increased by nearly 50%, attributed to rising chick prices and improved production efficiency, while operating costs have remained stable [6] - The company plans to focus on the breeding sector, leveraging its core competency in high-quality poultry breeding to drive future growth [5] Group 4: Strategic Initiatives and Market Position - The company is expanding its breeding capacity for pigs, with expectations that this will contribute to a dual-driven business model alongside chicken production [5] - The company has successfully increased its market share in the breeding sector through acquisitions and self-built facilities [5] - The introduction of domestically developed broiler breeds is seen as beneficial for the industry, enhancing competition and consumer choice [6]