Huatong Meat(SZ:002840)2022-11-22 03:06Group 1: Company Overview and Industry Context - Zhejiang Huatong Meat Products Co., Ltd. is positioned as a key player in the pork supply chain, benefiting from government support in pig farming and sales [2][3] - The company has seen significant growth opportunities in recent years, particularly due to its status as a government-designated supplier of pork in Zhejiang Province [3] Group 2: Operational Insights - The average weight of pigs for slaughter has increased, with a conversion ratio of 1:1.5 compared to standard weights due to high pig prices [2] - The company primarily retains its raised pigs for internal slaughter, with some breeding pigs sold externally depending on market conditions [2] Group 3: Market Dynamics - The pork prices in Zhejiang Province are among the highest in China, ranking within the top three, providing a competitive advantage for local pig farming [3] - The profitability of the slaughtering business is influenced by both the volume of pigs processed and the fluctuating market prices, creating a dynamic between buyer and seller markets [3] Group 4: Future Development Plans - The company aims to integrate its operations across the entire pork supply chain, including feed processing, pig farming, slaughtering, and meat processing, to mitigate operational risks and enhance food safety [3] - Future growth is expected to focus on deep processing of meat products, which is anticipated to become a new profit growth point for the company [3]