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2022

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11

Multiple Listed Chicken Companies Achieved High Sales Revenue Growth, Especially Breeding Ones Found Doubled

Source:

OIG+X

According to data of sales in Oct from poultry breeding enterprises recently, Xiantan Ltd achieved chicken products sales revenue of 496 million yuan, a YoY growth of 58.05%; Wens reached 3.832 billion yuan of broiler revenue in Oct, rising 28.16% YoY; Lihua Ltd reached 1.313 billion yuan of broiler revenue, surging 49.77% YoY; Sunner Group sold chicken products for 1.315 billion yuan, up 24.07% YoY.

 

According to data of sales in Oct from poultry breeding enterprises recently, Xiantan Ltd achieved chicken products sales revenue of 496 million yuan, a YoY growth of 58.05%; Wens reached 3.832 billion yuan of broiler revenue in Oct, rising 28.16% YoY; Lihua Ltd reached 1.313 billion yuan of broiler revenue, surging 49.77% YoY; Sunner Group sold chicken products for 1.315 billion yuan, up 24.07% YoY.

 

Among companies in the chicken industry, the breeding farmers found sales increasing significantly. Minhe Ltd and Yisheng Ltd disclosed sales revenue of 78.93 million yuan and 197 million yuan respectively in Oct, skyrocketing 146.53% and 185.44% year-on-year.

 

The representative from Yi Sheng expressed that there exists improvement for price of future parents generation of breeding chicken and the commodity generation of chicken seedlings. Sunner also forecasts that the chicken price will continue to rise with the recovery of consumption in Q4.

 

In China, chicken products are the second largest consumption meat after pork. The recent high price of pig and pork products has kept a strong price support for chicken.

 

Moreover, the decreasing introduction of ancestral broiler breeders in Q1-Q3 became another major reason for the surge in price. China hasn’t introduced the ancestor breeder from overseas from May to July and Oct this year due to suspension of flights and frequent occurrence of avian flu. The breeding introduction in Nov and later period is uncertain.

 

Western countries are currently experiencing "the largest outbreak of bird flu on record," with figures released in early October by the ECDC and EFSA showing that nearly 48 million birds have been culled, affecting 37 countries including the United States.

 

In the long term, the overseas epidemic will increase the introduction difficulty and it usually takes three quarters for the supply of commercial chicken seedlings to be replenalized. The lack of introduction may also cause a relatively tight supply of commercial chicken seedlings in the second half of next year.

 

As for this situation, companies with their own research and development are less vulnerable to the European pandemic. In order to reduce the impact of cyclical fluctuations on performance, chicken enterprises also began to move downstream, focusing on deep processing of meat products, terminal food market and other fields, such as Xiantan Shares, Xiangjia Shares and other enterprises have developed prepared dishes business.