Dekon Agriculture and Livestock (02419) saw its share price jump more than 8% during Tuesday morning trading, with shares last up 6.07% at HK$54.20, reflecting trading volume of HK$27.09 million.

Market data from Souchuang.com indicates that as of August 14, the national average price for lean hog slaughter reached 10.64 yuan per kilogram, marking a 2.4% week-on-week increase. Additionally, yellow-feathered medium-speed chicken prices hit 6.07 yuan per jin on August 13, up 5% from the previous week.

According to public information, Dekon Agriculture has maintained a long-term strategic focus on both hog and yellow-feathered chicken farming. The company's cumulative breeding advantages, developed over years of operation, have consistently positioned its livestock and poultry production costs at the industry's leading level.

China Merchants Securities noted that while weak hog prices weighed on overall sector performance in the first half of the year, the company's hog operations aligned with expectations, while the yellow chicken segment demonstrated significant profit improvement. The brokerage highlighted that policy initiatives steering the breeding industry toward high-quality development align well with Dekon Agriculture's commitment to rural development and farmer empowerment, underscoring its role as a responsible leading pig enterprise. The firm maintains a positive long-term outlook for the company.

The securities firm further observed that after more than three years of cyclical downturn in the yellow-feathered chicken industry, capacity reduction efforts have yielded notable results, creating upward momentum for chicken prices. China Merchants Securities holds a constructive view on the yellow chicken sector's prosperity cycle expected in 2026.