【Huaxi Agriculture】Yisheng Co., Ltd. (002458) Dynamic Commentary Report: Limited Introduction Supports Broiler Chick Prosperity, Focus on Company Expectations Gap

Western Agriculture, Forestry, Animal Husbandry, and Fishery

Event Overview

From November to December 2025, avian influenza outbreaks occurred in France’s main broiler breeding regions (Maine-et-Loire and Vendée). Currently, China’s parent-generation broiler chicken imports are suspended. In 2025, Yisheng Co., Ltd. imported 266,000 sets of parent-generation white-feather broiler chickens, with a total import volume of about 620,000 sets nationwide, accounting for 43% of the company’s imports. In February and March 2026, the company has no import plans.

Analysis and Judgment:

(1) The company’s core competitive advantage is supplying high-generation poultry breeding stock

The company’s main businesses include importing and raising parent-generation chickens, producing and selling parent-generation broiler chicks, producing and selling commercial broiler chicks, raising and selling breeding pigs and commercial pigs, manufacturing and selling agricultural and veterinary equipment, and raising dairy cows and selling dairy products. The company’s total revenue has shown a stepwise increase, with profits fluctuating strongly under cyclical influences. From 2010 to 2024, total revenue grew from 459 million yuan to 3.136 billion yuan, with a CAGR of +15%. In 2025, the company is expected to achieve net profit attributable to shareholders of 150 million to 190 million yuan, a year-on-year decrease of 70.23% to 62.29%, mainly due to low prices for chicken meat and毛鸡 (毛鸡 refers to毛鸡, a type of chicken), with significant price drops in the first half of the year. The company’s equity structure is concentrated; as of the third quarter of 2025, founder and chairman Mr. Cao Jisheng held 40.82% of shares, making him the largest shareholder and the actual controller.

(2) Overseas import restrictions lead to supply contraction, initiating a cycle of rising chick prices

Changes in the capacity of parent-generation chickens will transmit to broiler chicks after 7 months, and to commercial broiler chicks after 14 months. In December 2024, high-pathogenic avian influenza outbreaks occurred in Oklahoma, USA (then the only U.S. state importing parent-generation chickens) and New Zealand, leading to a complete suspension of imports of parent-generation chickens from the U.S. and New Zealand. To address the crisis, domestic companies actively sought new import channels. After efforts, they broke through France’s import channels, but in November-December 2025, avian influenza outbreaks occurred in France’s main broiler breeding regions (Maine-et-Loire and Vendée). According to investor relations records of Yisheng Co., Ltd., imports of domestic parent-generation broiler chickens are currently suspended. Since 2026, the number of parent-generation broiler chickens in China has shown a declining trend, with a 5% decrease in week 8 compared to week 1 of this year; the number of breeding parent-generation chickens has also significantly decreased compared to 2025. The suspension of imports of parent-generation chickens will, according to breeding cycle transmission laws, lead to a shortage of parent-generation broiler chicks after 7 months, with prices continuing to rise. Even if imports of parent-generation chickens resume later, the impact will take 7 months to transmit to the parent-generation chick stage. Considering the peak laying period of breeding chickens, the additional import volume is not expected to significantly impact the high prosperity of parent-generation broiler chicks in 2026.

(3) Strengthening the basic breeding foundation to secure profitability; stepwise increase in breeding pig sales

The company’s broiler chick business has been steady. From 2020 to 2025, sales increased from 486 million to 654 million chicks. Yisheng 909 small white-feather broiler chicks have seen rapid growth, from 76.44 million in 2022 to 88.84 million in 2025. According to the company’s 2025 semi-annual report, to further expand the white-feather broiler business, the company will invest in building a parent-generation white-feather broiler farm and a supporting feed factory in Yunzhou District, Datong City, Shanxi Province, to enlarge the scale of parent-generation broiler breeding and improve the supply capacity of commercial broiler chicks. While developing the broiler business, the company is also expanding its breeding pig industry. Since 2000, it has established original breeding pig farms, accumulating over twenty years of experience. Production capacity has been gradually increasing since October 2023; in 2024, nearly 30,000 breeding pigs were sold, and in 2025, nearly 100,000. The company plans to sell 150,000 breeding pigs in 2026, continuing growth.

Investment Recommendations

Our analysis: 1) As a leader in white-feather broiler breeding, in 2025, the company imported 266,000 sets of parent-generation white-feather broiler chickens, with increased import volume and sufficient parent stock. The company expects to increase the supply of parent-generation chickens in 2026 compared to 2025. Currently, the company’s commercial broiler chick capacity exceeds 600 million. 2) Currently, China’s imports of parent-generation broiler chickens are suspended. According to breeding cycle laws, the reduction in parent-generation chickens will transmit to parent chicks after 7 months, likely causing tight supply and rising prices. Even if imports resume later, the impact will take 7 months to affect the parent chick stage. Considering the peak laying period, the additional imports are unlikely to significantly impact the high prosperity of parent chicks in 2026. 3) The company will invest in building a 1 million set parent-generation white-feather broiler farm and a supporting feed plant in Yunzhou District, Datong City, Shanxi Province, to expand breeding capacity and improve supply. 4) The breeding pig business is expanding, with sales expected to reach 150,000 pigs in 2026. Based on this, we forecast that the company’s revenue for 2025-2027 will be 2.65/3.53/4.06 billion yuan, with net profits attributable to shareholders of 165 million/1.02 billion/1.22 billion yuan, and EPS of 0.15/0.93/1.10 yuan. As of March 18, 2026, the stock price was 9.56 yuan, corresponding to PE ratios of 64/10/9X for 2025/26/27. This is a first coverage; we assign a “Buy” rating.

Risk Tips: Price fluctuations of products, raw material supply and price volatility, animal disease risks, natural disaster risks.

Securities Analyst: Zhou Sha S1120519110005

Publication Date: March 18, 2026

“Yisheng Co., Ltd. (002458) Dynamic Review Report: Import Restrictions Support Chick Price Outlook, Focus on Company Expectations Gap”