Industry analysts have analyzed that incubating large enterprises such as Yisheng Shares (002458. SZ) and Minhe Shares (002234. SZ) have entered a profitable state. The person in charge of Yisheng Co., Ltd. stated that it has indeed started to make profits at present, but the later situation still depends on the price trend of chicken seedlings. If the price remains at the current level, the incubated enterprises will achieve good profits.

According to Liu Qingqing, a broiler analyst at Zhuochuang Information, the recent consecutive rise in domestic prices of large meat chickens has increased the confidence of farmers in the future market; In addition, at this time when the seedlings were being raised, around the May Day holiday, the price of raw chickens was at a high level during previous festivals. Farmers had a high demand for stocking up, resulting in a significant increase in the overall amount of seedlings taken.

In addition, on the supply side, Liu Qingqing pointed out that due to the impact of the 2013 avian influenza, incubation companies suffered serious losses. In order to reduce losses, most incubation companies have eliminated a large number of parent chickens, resulting in a reduction in the current market supply of chicken seedlings. She stated that currently, major incubation companies are operating smoothly with good profitability. In the short term, breeders will continue to maintain a high level of stocking capacity, and chicken seedling prices may remain stable with a slight increase.