YISHENG(SZ:002458)2022-12-06 07:14Group 1: Company Overview - Yisheng Co., established in 1989, is the largest ancestor meat chicken breeding enterprise in China and Asia, holding approximately 33% of the domestic market share for ancestor meat chickens [3] - The company also has a significant presence in the market for commercial broiler chicks, accounting for about 10% of the domestic market [3] Group 2: Market Trends and Pricing - Recent decline in chick prices is attributed to the holiday season affecting slaughterhouses, leading to a temporary halt in hatching [3] - The price of parent broiler chicks has increased due to supply-demand dynamics, with a notable shortage in ancestor white feather broiler imports since May, resulting in a projected high market demand for the next year [3][4] - Chicken meat consumption has risen from 20.9% of total meat consumption in 2010 to nearly 30% currently, driven by health trends and the growth of the takeaway and prepared food industries [3] Group 3: Production and Capacity - The company produced over 500 million commercial broiler chicks in 2022, with the new Yisheng 909 breed expected to reach an output of over 300 million by the end of the 14th Five-Year Plan [4] - The company plans to significantly increase the production capacity of the Yisheng 909 breed, which has shown superior performance in terms of meat yield and disease resistance [4] Group 4: Challenges and Strategic Responses - The rise in feed raw material prices impacts production costs, with feed costs accounting for approximately 70% of total costs in commercial chicken farming [5] - The company has adapted its farming practices to mitigate the impact of rising feed costs, including transitioning from free-range to cage farming to enhance efficiency [5] - Future plans include importing ancestor meat chickens, contingent on international supply conditions affected by avian influenza [4]