Research Brief | Yisheng Co., Ltd. Welcomes 29 Institutions Including Guosheng Securities for a Visit; Breeding Pig Business Grows 228%; Parent Stock Chickens Expected to Rise in Both Volume and Price by 2026

On March 26, Shandong Yisheng Livestock and Poultry Breeding Co., Ltd. (hereinafter referred to as “Yisheng Co., Ltd.”) accepted research from 29 institutions, including Guosheng Securities, Huaan Securities, and CICC, via a conference call. The company’s president, board secretary, and CFO Lin Jie engaged in in-depth discussions with institutions regarding key issues such as the 2025 operating performance, introduction of grandparent breeding chickens, industry prosperity cycles, and future capacity planning. The research indicates that the company’s pig breeding business will achieve explosive growth in 2025, with a year-on-year increase of 228%. At the same time, benefiting from restrictions on the introduction of grandparent breeding chickens, the parent breeding chicken business is expected to see “concurrent increases in volume and price” in 2026.

Basic Information on Investor Activities

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Core Points of Company Operations and Industry Outlook

2025 Performance: Pig Breeding Business as Growth Engine, Chick Prices Gradually Recovering

Established in 1989, Yisheng Co., Ltd. is a leading enterprise in the breeding of grandparent meat chickens in China, with the scale of grandparent meat chicken breeding ranking first in the country for twenty consecutive years, accounting for about one-third of the domestic imported breeding chicken market. In 2025, the company will focus on two core main businesses: white feather meat chickens and pig breeding, achieving an annual operating income of 2.952 billion yuan, with a net profit attributable to shareholders of the listed company of 165 million yuan, and a net cash flow from operating activities of 562 million yuan.

Although the performance of the white feather meat chicken segment was under pressure in the first half of the year due to factors such as overseas avian influenza, restrictions on grandparent breeding introductions, and low terminal chicken prices, it gradually improved in the second half. The price of commercial chicken seedlings increased seasonally, with the price of parent chicken seedlings rising monthly since September 2025, reaching 59 yuan/set in April 2026. More noteworthy is that the company’s pig breeding business achieved explosive growth with a year-on-year increase of 228%, leveraging the advantages of high-quality double-negative pigs, becoming a new performance growth point that effectively offset the performance fluctuations of the white feather meat chicken segment.

Significant Advantages in Grandparent Breeding Introduction, Industry Supply Tightening Pattern Established

In 2025, due to the impact of overseas avian influenza, the introduction of grandparent white feather meat chickens in China was temporarily halted. The company was the first to introduce from France in March 2025, with an annual introduction of 266,000 sets, accounting for over 42% of the national total introduction amount (approximately 620,000 sets), maintaining an absolute advantage against the backdrop of a year-on-year decline in industry introductions.

However, in November and December 2025, avian influenza broke out again in the main production areas of French breeding chickens (Maine-et-Loire Province, Vendée Province), forcing the domestic introduction plan to be suspended. The latest announcement from the General Administration of Customs indicates that these areas remain on the import prohibition list, making it difficult to restore introductions in the short term. The company stated that the future scarcity of imported breeding sources will support the price increase of parent breeding chickens, while the company’s breeding costs remain relatively fixed, with price increases directly translating into profit increments. It is expected that the parent breeding chicken business will achieve “concurrent increases in volume and price” in 2026.

Selected Investor Q&A

Q: What is the difference between “Yisheng 909” and “Yisheng 817”?

A: “Yisheng 817” is mainly suitable for producing medium and small-sized products, while “Yisheng 909” is suitable for medium and large-sized products. The two create a differentiated market layout to meet the breeding enterprises’ needs for different small white feather meat chicken varieties.

Q: Who are the main customers for the company’s pig breeding?

A: The pig breeding customers are mainly large-scale breeding enterprises, including leading companies in the industry like Wens Foodstuff Group, Da Bei Nong, and COFCO.

Q: What are the plans for commercial chicken seedling production capacity in the future?

A: The company’s goal is to increase the breeding scale of parent chickens to 10 million sets within the next four years and to expand commercial chicken seedling production capacity to 1 billion.

Q: How do you view the price trend of commercial chicken seedlings in 2026?

A: On the demand side, downstream farms continue to expand production, with the demand for chicken seedlings in the industry expected to increase by over 10% compared to 2024, while the company’s production increase is 8.6%, indicating a supply-demand gap that supports prices. On the supply side, the decrease in grandparent breeding chickens in 2025 will affect the supply of commercial breeds in 2026, and high-quality chicken seedlings are expected to be in tight supply. In addition, the market generally expects pork prices to rebound in the second half of 2026, which may drive chicken consumption and price increases, further transmitting to the chicken seedlings segment and providing strong support for prices.

Q: How will the company ensure the supply of breeding sources under current introduction restrictions?

A: The company will continue to consolidate the stability of breeding source supply, expand introduction channels, and steadily promote the construction of the 1 million sets parent breeding chicken farm and supporting feed factory project in Datong, Shanxi, to enhance the capacity for scaled supply of commercial chicken seedlings.

Future Outlook

The company stated that it will enhance efficiency through source purification and full-process cost control, accelerating the release of pig breeding business capacity while expanding the scale of white feather meat chickens, providing assurance for the supply of chicken and pig breeding sources in China. Institutions generally believe that in the context of restricted grandparent introductions and established industry prosperity cycles, the company, as an industry leader, is expected to fully benefit from the concurrent increases in volume and price.

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