The industry turning point is becoming clearer, DEKON AGR (02419) leads in per capita earnings with stronger certainty.

For secondary market investors, the financial reports of listed companies have always been one of the key criteria for selecting investment targets. In mid-June, the financial reporting season has already turned a page. Reviewing the "report cards" disclosed by listed companies in the past few months, the aquaculture industry is one of the few sectors with a positive outlook. Furthermore, combining with market news, the expectations for the aquaculture industry seem to be becoming more optimistic. Taking pig breeding as an example, according to market news, the relevant departments recently organized a meeting to guide the reduction of speculative activities in the industry and stabilize future pig prices. With a solid fundamental basis and high visibility of future growth, it is worth paying attention to companies in the aquaculture sector. Taking the representative DEKON AGR (02419) as an example, the company has been deeply involved in pig and yellow-feathered chicken breeding for a long time. In 2024, DEKON AGR's core financial data show a steep curve, with revenue increasing by 39% year-on-year to 22.5 billion yuan, and net profit successfully turning positive and exceeding 4.2 billion yuan. From an industry perspective, under the transmission of previous capacity reduction, the pig breeding industry had relatively good pig prices last year, providing favorable conditions for the industry to achieve profitability. The top companies in the industry, including DEKON AGR, performed particularly well. It is reported that in 2024, the company's pig slaughter volume increased by 24% year-on-year to 8.78 million heads, with the average selling price of commercial pigs at about 16.7 yuan per kilogram. Calculated throughout the year, the average profit per pig head is about 360-370 yuan, a profit level sufficient to rank at the forefront of the industry. DEKON AGR has demonstrated strong profitability, which is related to its outstanding breeding capabilities. The company's E-line boars, when integrated with existing D-line sows, showed significant effects, with 12 days earlier market weight of 110 kilograms and decreased feed ratio by 0.1. Each pig's cost at slaughter can be reduced by about 100 yuan. Since 2023, the E-series sows have been widely promoted, playing a positive role in reducing DEKON's overall costs. It is estimated that the current complete cost of DEKON AGR has been reduced to about 12.5 yuan per kilogram. Looking into the future, DEKON AGR's breeding costs are expected to be further optimized. At the current stage, the company is planning to expand from the southwest to the south and east markets. Furthermore, the recent industry regulatory signals are expected to benefit DEKON AGR. The reason is that DEKON AGR has followed the path of service-oriented pig enterprises, responding to policies that empower and benefit farmers. DEKON AGR's self-operated farm accounts for a low percentage of the total output with no expansion plans, whereas the high output percentage farm model of "platform + farmers" cooperates with farmers to increase their income. The latest regulatory signals are gradually guiding enterprises to shift from "competing for scale" to "balancing efficiency and fairness," emphasizing the interests of farmers. Against this backdrop, DEKON AGR's breeding and cost advantages accumulated over the years will be amplified on its own path of light asset, service-oriented, and high-quality development. With the large-scale capital expenditures in the industry basicall...