HK Stock Market Move | DEKON AGR (02419) Surges Over 10%; September Full Cost of Commercial Hogs Drops to About RMB 11.6/kg, Continued Cost Optimization Is Feasible

DEKON AGR (02419) rose over 10% in morning trading, up 7.56% as of press time at HK$58.2, with turnover of HK$22.224 million. On the news front, according to institutional research data, DEKON AGR's full cost of commercial hogs in September 2026 fell to about RMB 11.6/kg, with its cost control level continuing to rank among the industry's leaders. Relying on production process optimization and refined operations, the company has further consolidated its cost reduction and efficiency gains, and costs are expected to decline further going forward. A Huaxin Securities research report pointed out that, by calculation, DEKON AGR's full cost of live hogs continued to fall from RMB 15.79/kg to RMB 11.89/kg from 2023 to 2026H1, a cumulative decline of about 24.7%. A horizontal comparison shows that from 2024 to 2026H1, Dekon's cost was about RMB 0.370.83/kg lower than the industry average, equivalent to an advantage of about RMB 48109 per head, sufficient to cover the industry-average cyclical loss and serving as the core support for stabilizing its profit base during the downcycle in hog prices; going forward, with PSY and the feed conversion ratio converging toward those of industry leaders and feed supply chain optimization, continued cost optimization is feasible, and profit elasticity is expected to be further unleashed.