HK Stock Market Move | DEKON AGR (02419) rose over 6% in the afternoon as the de-capacity of live pig production accelerated, and the company's cost advantages in farming are leading the industry.

DEKON AGR (02419) rose over 6% in the afternoon, reaching 6.12% at the time of reporting, priced at HKD 57.2, with a trading volume of HKD 44.6809 million. According to the Ministry of Agriculture and Rural Affairs, as of the end of the second quarter of this year, the nationwide breeding sow population has decreased to 37.8 million, down 2.63 million from the same period last year, and down 1.81 million from the end of 2025. This leaves only 300,000 sows short of the target normal holding amount of 37.5 million. Guotou Securities states that the pig breeding industry may gradually enter a phase of excessive elimination of sows by the third quarter of 2026, which will correspondingly drive the reversal of the pig cycle in 2027. It is worth noting that DEKON AGR maintains a leading position in terms of total cost and profitability efficiency, with individual head losses better than its peers, demonstrating significant anti-cyclical resilience. Huatai believes that the trend of accelerated capacity reduction and a medium to long-term bottoming and rebound in pig prices is relatively clear, and the pig breeding sector may present a favorable time for allocation. The company maintains a relative cost advantage in breeding and still has room for optimization, making long-term growth worthy of expectation.