The chicken sector continues its recovery, with several industry-listed companies recently releasing their August sales figures, showing a sequential increase in sales revenue for the month.

On the evening of September 10th, Yisheng Co., Ltd. issued a brief on sales, reporting that in August, the sales volume of white feather broiler chicks was 51.556 million, with sales revenue of 208 million yuan. The sequential changes were -2.69% and 10.94%, respectively, while the year-on-year changes were -14.53% and -18.38%, respectively. Among them, the sales volume of Yisheng 909 small white feather broiler chicks was 6.2069 million, with sales revenue of 8.3765 million yuan, and the sequential changes were -0.35% and 9.27%, respectively.

Another broiler chick company, Minhe Co., Ltd., announced that in August, the sales volume of commercial broiler chicks was 20.5612 million, with year-on-year changes of -6.30% and sequential changes of -5.69%; sales revenue was 67.7175 million yuan, with year-on-year changes of 7.97% and sequential changes of 19.03%.

The quoted prices of Yisheng Co., Ltd. and Minhe Co., Ltd. show that the latest price of their broiler chick products is 4.4 yuan per piece. In August, the price of broiler chicks remained in the 4 yuan range, a significant rebound from the first half of the year's low point. In addition, according to the data from Tonghuashun iFinD, on September 11th, the domestic white feather broiler chick ex-factory price was 3.55 yuan per chick, with a weekly increase of 14.52% and a monthly increase of 10.94%.

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From the supply side, since May 2022, the reduction in the import volume of grandparent white feather broiler chickens in China has begun to affect the production of commercial broiler chicks this year. In the first half of this year, the volume of broiler chicks decreased year-on-year for companies. However, since the second half of the year, there has been a breakthrough in the overseas introduction of broiler chicks, among which Yisheng Co., Ltd. has achieved multiple batches of introduction.

On September 6th, Yisheng Co., Ltd. announced that the company has successfully introduced 14,000 sets of Lifeng grandparent white feather broiler breeders from the United States. This is the first batch of the month and the thirteenth batch of the year for the company. The batch of breeders entered the country through Hangzhou Xiaoshan International Airport and has now arrived smoothly at the company's Weihai grandparent meat breeder farm.

Yisheng Co., Ltd. stated that the introduction of this batch of Lifeng grandparent white feather broiler breeders is expected to provide the market with 1 million sets of high-performance parent breeders and 125 million commercial meat chickens. It is understood that, to date, the import volume of grandparent meat breeders of Yisheng Co., Ltd. this year accounts for about 1/3 of the domestic import volume, and the import quantity remains the highest in China.

In addition to the broiler chick segment, the profitability of downstream segments such as chicken cutting products is also gradually recovering.

Xiantan Co., Ltd. recently disclosed that in August, it achieved sales revenue of 443 million yuan for chicken products, with a sales volume of 49,900 tons, and the sequential changes were 2.53% and 4.50%, respectively.

Among them, the poultry breeding and processing industry achieved sales revenue of 405 million yuan for chicken products, with a sales volume of 47,300 tons, and the sequential changes were 1.87% and 4.33%, respectively; the food processing industry achieved sales revenue of 38.4482 million yuan for chicken products, with a sales volume of 2,600 tons, and the sequential changes were 10.06% and 7.74%, respectively.Xiantan Shares announced that the company's first phase of pre-cooked dishes project has been steadily advancing in research and development, brand building, and sales market. The second phase of the project started production on July 17th of this year, with the production capacity of pre-cooked dishes gradually being released, the quantity of production and processing increasing step by step, and the sales volume and revenue also increasing accordingly.

Sennong Development disclosed that in August, the sales revenue was 1.559 billion yuan, a year-on-year decrease of 4.63%, and a month-on-month decrease of 10.63%. In terms of sales volume, the sales volume of chicken in the poultry breeding and processing segment was 113,000 tons in August, a year-on-year increase of 19.76%, and a month-on-month decrease of 7.68%; the sales volume of products in the deep-processed meat products segment was 32,600 tons, a year-on-year increase of 1.24%, and a month-on-month decrease of 1.31%.

Sennong Development stated that the cumulative sales volume of the company's various segments from January to August maintained a stable growth compared to the same period last year, with the cumulative slaughter volume increasing by more than 21% year-on-year. Thanks to the effective implementation of the company's cost leadership strategy and continuous management improvement, the comprehensive meat production cost on the breeding side in August reached a new low for the year, and the profit level continued to improve month-on-month; in the food segment, some channels such as exports, catering systems, and retail offline continued to maintain a high growth momentum.

Industry insiders believe that with the arrival of the school season and preparations for the Mid-Autumn Festival, there is a certain recovery in downstream demand. As of this week, the price of chicken chicks is 3.4 yuan per chick, a week-on-week increase of 4.3%. From the perspective of parent stock chicks, the supply of chicks in the second half of the year is expected to be on a downward trend both year-on-year and month-on-month.

For the future market, the industry believes that from the perspective of supply and demand patterns, the industry inflection point may not appear soon. Zhuochuang Information believes that the inventory of parent stock breeders in the second half of the year will gradually increase, and later, with the increase in upstream capacity, the output of live chickens may gradually increase. On the demand side, the school season and preparations for the double festivals will boost market demand, but the overall performance of the demand side in the second half of this year is expected to be relatively flat.