DEKON AGR (02419) shares rose more than 7% in intraday trading. As of the time of writing, the stock was up 4.27%, trading at 55.00 HKD, with a turnover of 23.92 million HKD.
Recently, DEKON AGR announced that for June 2026, the Group sold 1.029 million head of commercial hogs, generating revenue of 1.3016 billion RMB. The average selling price for commercial hogs in June 2026 was 9.63 RMB/kg, up 2.23% from May 2026.
According to institutional research data, DEKON AGR's total cost for commercial hogs in June 2026 was 11.83 RMB/kg. The company's cost control capabilities remain at the forefront of the industry. By optimizing production processes and refining operations, the company has further consolidated its cost-reduction and efficiency gains, with further cost reductions anticipated in the future.
Also noteworthy, DEKON AGR announced that it entered into a subscription agreement with bookrunners to issue USD 100 million zero-coupon convertible bonds due 2027. The initial conversion price is 54.08 HKD per H-share, representing a premium of approximately 5.00% over the last closing price of 51.50 HKD per H-share on the Hong Kong Stock Exchange on July 24, 2026. The company is using these low-cost USD bonds to replace a portion of its relatively high-interest domestic short-term bank loans.
Using low-cost funds to replace high-cost liabilities at the bottom of the industry cycle can be seen as a proactive optimization of the financial structure. At the current cyclical trough, international investors' willingness to buy a 5% premium call option on DEKON AGR fundamentally reflects a high degree of confidence in the management's credibility and the company's bottom-level value.
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