WENS FOODSTUFF GROUP CO.(300498)2024-05-11 12:28Group 1: Financial Performance - The comprehensive cost of pig farming in April was approximately 7.2 yuan/kg, a decrease of 0.2 yuan/kg from the previous month, attributed to effective disease control and lower feed prices [2] - In April, 7 out of 16 provincial farming units had a comprehensive cost below 7 yuan/kg, with only North China and Shandong having higher costs due to lower output [3] - The company aims to maintain a stable production and cost control to ensure profitability, even in a low market [4] Group 2: Production Metrics - The breeding and delivery rate improved to around 84% in April, with an average of 11.2 piglets per litter and a PSY of approximately 23 [3] - The number of breeding sows at the end of April was about 1.57 million, with a capacity utilization rate of approximately 68% [3] - The company reported a piglet production cost of around 350 yuan/head [3] Group 3: Market Outlook - The company anticipates a weak balance in supply and demand in the pig farming industry, leading to low profitability in the near future [5] - The company is cautious about engaging in pig futures and focuses on cost control as a primary strategy for high-quality development [5] Group 4: Investment and Financing - The fixed asset investment plan for 2024 is set between 2 billion to 3 billion yuan, focusing on upgrading pig farms and chicken production capacity [6] - As of April, the company had approximately 10 billion yuan in available funds, with low-interest rates on new loans [6] - The company has not considered new equity financing plans at this time [6] Group 5: Risk Management - The company maintains a debt ratio safety line of 50%, with a target to reduce it below 45% during favorable market conditions [7] - The company has not discussed any mandatory redemption plans for convertible bonds as the stock price has not reached the required threshold [7]