DEKON AGR Shares Surge Over 6% in Morning Session; Sector Capacity Expected to Decline, Company Leads in Cost Efficiency

Stock News
Mar 06

DEKON AGR (02419) rose more than 6% before noon. As of the time of writing, the stock was up 6.54%, trading at HK$72.5 with a turnover of HK$19.92 million. A research report from China Galaxy noted that pig prices have continued to decline after the Spring Festival, dropping below 11 yuan/kg in early March. It is believed that against the backdrop of losses, industry capacity may accelerate its downward trend. Attention is being drawn to excellent pig farming enterprises that lead or consistently improve in cost control, maintain relatively healthy finances, and have reasonable valuations. China Merchants Securities indicated that DEKON has long been deeply engaged in the pig and yellow-feather broiler breeding industry. Its accumulated breeding advantages over the years have resulted in livestock costs that lead the industry. In terms of pig farming, the company has long been committed to cost reduction, with its current full cost potentially lowered to around 12 yuan per kilogram, firmly placing it in the top tier of the industry. Further reductions are anticipated in the future. The company plans to focus on developing its Type 2 family farm model, in line with policy guidance, partnering with farmers to drive growth, actively responding to national initiatives, and demonstrating the responsibility of a leading pig farming enterprise.

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