HK Stock Market Move | COFCO JOYCOME (01610) falls more than 5% again due to significant decline in the selling price of live pigs. The company's annual profit turns into a loss of 290 million Hong Kong dollars.

COFCO JOYCOME (01610) fell by more than 5%, dropping to 5.37% at the time of publication, reporting 1.41 Hong Kong dollars, and trading volume of 50.3811 million Hong Kong dollars. On the news front, COFCO JOYCOME released its annual performance, achieving operating income of 18.579 billion yuan during the period, a year-on-year increase of 13.8%. However, the company suffered a loss of 290 million yuan during the year, a significant decrease from a profit of 275 million yuan in the same period last year, mainly due to a substantial decline in the selling price of live pigs, which squeezed the profit margins of the pig farming business. It is reported that the national average price of live pigs fell to 9.87 yuan/kg on March 20, officially breaking through the key psychological barrier of 10 yuan/kg, and the industry has entered a state of deep losses. Huaxi believes that with the continuous decline in live pig prices and widespread industry losses, there will be a substantial acceleration in the process of actively reducing production capacity, and the turning point in production capacity reduction is approaching, highlighting the value of a contrarian layout.