HK Stock Market Move | DEKON AGR(02419) rose more than 6% in the afternoon. Institutions are optimistic about low-cost high-quality pig enterprises achieving excess returns.

DEKON AGR (02419) rose more than 6% in the afternoon, up 6.44% at the time of publication, closing at 76.05 Hong Kong dollars, with a turnover of 78.2385 million Hong Kong dollars. In terms of news, according to iFind data, the national breeding sow inventory at the end of December decreased to 39.61 million, a decrease of 290,000 compared to October, and the effect of reducing production capacity is gradually emerging. Huafu Securities released a research report stating that pig prices are weak, coupled with the advancement of production capacity control policies, the industry's capacity digestion is expected to continue, which may drive the long-term center of pig prices to move upward, and low-cost high-quality pig companies will receive excess returns. CMSC stated that Dekon has long been deeply involved in the pig and yellow-feathered chicken breeding industry, and its accumulated breeding advantages over the years have made its poultry and livestock costs leading in the industry. In terms of pigs, the company has long been committed to cost reduction, with current full costs already reduced to around 12 yuan/kg, firmly in the top tier of the industry; there is still room for further cost reduction in the future. The company plans to focus on developing the number two family farm model while complying with policy guidance, promoting agriculture through farmers, actively responding to the national call, and demonstrating the responsibilities of leading pig companies.