1. In the second quarter, the price of white feather chicken chicks continued to fall, and Yisheng's performance was put to the test; 2. Since July, the white feather chicken industry chain has rebounded significantly, and insiders are bullish on the industry's performance in the second half of the year.
On August 1st, Caixin reported (Reporter Xia Lianghua), the price of white feather chicken chicks continued to fall in Q2 of this year. Yisheng's (002458.SZ) performance was tested, and Q2 single-quarter profit fell on a month-on-month basis, with net profit in the first half of the year compared to the same period last year. However, starting from the second half of July, the white feather chicken industry chain rebounded, and insiders said that they are looking forward to the market in the second half of the year.
On August 1st, Yisheng Livestock & Poultry Breeding released its 2024 interim report, achieving operating revenue of 1.376 billion yuan in the first half of the year, a year-on-year decrease of 25.77%; net profit attributable to shareholders of listed companies was 0.183 billion yuan, a year-on-year decrease of 67.61%. According to this calculation, the company achieved a net profit of 0.074 billion yuan in Q2, a decrease of more than 30% compared to the previous quarter.
"The white feather chicken industry chain suffered a severe test in the second quarter of this year." A responsible person of a listed company in the white feather chicken industry in Shandong told Caixin reporters that during the period, the price of live chickens dropped to a minimum of 3.39 yuan/jin, and the price of chicks fluctuated downward throughout the second quarter. Yisheng, as an upstream player in the industry, still has a certain profit margin, while losses in the middle and lower reaches of the industry have become normal.
However, this situation has improved in July.
Data shows that since early July, the price of Yisheng's white feather chicken chicks has risen from 2.7 yuan/bird to 4.2 yuan/bird, an increase of more than 50%. In addition, the price of parent generation breeding chickens has risen from around 55 yuan/set in June to over 70 yuan/set.
Yisheng's relevant person in charge said that since May 2022, the reduction in imported parent generation breeding chickens has affected the supply in the second half of the year. At the same time, the rebound in pork prices has also driven up chicken prices.
The above insiders said that August and September are the peak seasons for white feather chicken demand. Currently, the increase in supply is limited, and it is expected that the prices of chicken by-products will continue to trend higher in the third quarter.
In addition, with the investment and use of the company's pig breeding farms, the company's two-element breeding pigs have begun to be listed for sale, and production capacity has gradually been released. The company's pig business achieved single-quarter profitability in Q2 this year.