The Zhitong Finance App learned that Dekang Agriculture and Animal Husbandry (02419) rose by more than 4% and rose 4.34% at press time to report HK$50.5, with a turnover of HK$2.41 million.

According to the news, the company announced yesterday its annual results for the year ended December 31, 2023. The group obtained revenue of RMB 16.155 billion (same unit), an increase of 7.44% over the previous year; loss attributable to the company's equity shareholders was RMB 1,775 million, compared with profit of RMB 993 million for the same period last year; and loss per share. In 2023, the company's loss before the fair value of biological assets was 1,279 million yuan, while in 2022 it was a profit of 605 million yuan before the fair value adjustment of biological assets, mainly due to the sharp drop in pig prices in 2023, the average selling price fell 19.4% from the same period in 2022, and the average selling price of commercial chicken fell about 10% compared to 2022.

According to the Galaxy Securities Research Report, pig prices, which have been sluggish for a long time, have shown a volatile upward trend. The spot price of pigs rose 10% from 13.55 yuan/kg on February 23 to 14.92 yuan/kg. During the same period, pig futures prices rose from 14,655 yuan/ton to 15,545 yuan/ton, an increase of 6.1%. This phenomenon has drawn the market's attention to the inflection point of the pig cycle. The analysis found that supply contraction due to a decline in secondary fattening and slaughter was the main cause, not driven by an active recovery on the demand side. Currently, we are in the low consumption season. Demand for pork terminals is poor. The overall trading atmosphere is average. There is no favorable support in the short-term demand market. Pork sales may still be average, but after secondary education or piglets become active, the release of pigs still needs attention. It is expected that pig prices will weaken and adjust in the short term.