HK Stock Market Move | DEKON AGR (02419) rose more than 5% in midday trading. The turning point of the pig cycle is approaching, and the long-term value of high-quality pig stocks is expected to be reassessed.

DEKON AGR (02419) rose more than 5% during the trading session, and as of the time of this report, it has risen by 3.16% to 48.3 Hong Kong dollars, with a trading volume of 24.6789 million Hong Kong dollars. On the news front, recently, various provinces have successively issued comprehensive control implementation plans for the pig production capacity, and the capacity control is accelerating towards the local level. At the same time, pig prices have seen a rare continuous rise, reaching above 10 yuan/kg again. Shenwan Hongyuan Group recently pointed out that the acceleration of destocking in the industry is obvious, and the rebound point of pig prices is approaching. The bank believes that enterprises with excellent breeding efficiency and cost will still be profitable, while pig enterprises with breeding efficiency at the median level of the industry will face the risk of losses. The long-term value of high-quality pig stocks is expected to be reassessed. It is worth mentioning that since last October, when the complete cost of pig breeding entered 12 yuan/kg, on the basis of rising raw material prices, DEKON AGR's complete cost in May this year still remains at 11.87 yuan/kg, which is at the top level in the industry. In addition, the company's major shareholder has recently significantly increased their holdings of DEKON AGR shares. The announcement shows that the company's chairman and core shareholder, Wang Degen, accumulated over 2.23 million shares from May 27 to June 25, with a total investment of over 100 million Hong Kong dollars.