By the end of the day, Wynns shares closed at 38.25 yuan, up 6.75%, with a market value of 203.2 billion yuan. Muyuan shares closed at 93.80 yuan, an increase of 3.82%, with a market value of 202.8 billion yuan. The A-share pig farmer changed ownership.
It was a performance forecast from the company that ignited the soaring market of Wynns shares. On the evening of January 6, Wynn released the 2019 performance forecast. It is expected that the net profit of last year will be 13.85 billion to 14.3 billion yuan, with a year-on-year increase of 249.97% to 261.35%. On January 7, the project of building pig breeding of Wenshi Co., Ltd. was also announced, which attracted the attention of the market.
Stimulated by the market of Wynns shares, the overall pig industry sector rose strongly on that day, with the index rising more than 3.08%, and many pork concept stocks rose and stopped. On the same day, the chicken industry index rose more strongly, with the index up 4.83% on the same day. A-share chicken and pig dance again.
Wens performance shows muscle
Take the position of first brother in pig market value
On the evening of January 6, Wynns shares disclosed the performance forecast of 2019. The company expects to achieve a net profit of 13.85 billion yuan to 14.3 billion yuan in 2019, up 249.97% to 261.35% over the same period of last year.
It is reported that during the reporting period, Wynns shares sold 18.5166 million pigs, down 16.95% year-on-year, but the sales price increased 46.57% year-on-year; 925 million chickens, up 23.58% year-on-year, and the average sales price increased 9.93% year-on-year.
Wen said the sales price rose 46.57% year-on-year due to the tight domestic pig supply, and the companys pig business income and profit increased significantly year-on-year. At present, the situation of swine plague in Africa is still severe. The company will continue to strengthen the prevention and control of the epidemic, strictly grasp the biosafety, and fully promote the stable production and supply of pigs.
There is no doubt that the soaring performance of Wynns shares has stimulated the nerves of the market, and the stock price has also stepped out of a wave of strong market.
On January 7, Wynns shares opened higher by more than 3%, followed by a strong upward attack and a sharp rise of more than 7% in the session. As of the closing, Wynns shares closed at 38.25 yuan, up 6.75%, with a market value of 203.2 billion yuan.
This is also the seven consecutive days of Windsors stock market. The data shows that since December 27th, the share price of Wynn has risen from 32.4 yuan to 38.25 yuan. In just seven trading days, the range has risen by more than 18%.
Huge amount of money also rushed into Wynn shares on the same day. From the perspective of capital situation, the main net inflow of Wynns shares on that day exceeded 360 million yuan, of which the main inflow exceeded 1.132 billion yuan and the main outflow reached 764 million yuan. The capital flow on that day broke the peak of capital inflow in the past five days.
It is worth noting that in the evening of the same day, another pork stock leader muyuan shares disclosed pork sales performance. In the whole year of 2019, the company sold a total of 10.2533 million pigs, including 8.6791 million commercial pigs, 1.5471 million piglets and 27100 breeding pigs. The sales revenue was 19.661 billion yuan, up 48% year on year.
On January 7, muyuan shares also rose sharply, with the share price rising more than 5%. As of the closing, muyuan shares closed at 93.80 yuan, up 3.82%, with a market value of 202.8 billion yuan.
From the perspective of market value, the market value of Wynns shares seems to have overtaken muyuans shares and become the pig raising brother of a shares.
Pig stock strong attack
Market reappearance of chicken and pig dance
Under the stimulation of the rise of pork stocks, the performance of pork plate on that day was extraordinary.
On January 7, after the pig industry index opened slightly higher, it rose strongly. On that day, the index rose more than 3.08% to close at 1325.02.
On the same day, 23 component stocks in the board were in full swing, with the rise and fall of Yisheng shares, Wenshi shares, Longda meat, xinwufeng, muyuan shares and other pork stocks leading the way.
On the same day, the chicken industry index soared rapidly, and the A-share market staged a wave of chicken pig dance again. On the same day, the chicken industry index soared by more than 4.83%, and the rights of individual stocks in the board were in full swing, among which, Yisheng shares, Xiantan shares, Wenshi shares and Minhe shares rose by more than 5%.
More market participants believe that, in the case of chicken industry, pig industry and other breeding plates rising sharply, the gem index also has a strong upward attack. Data shows that the market value of gem closed at 1893.21, up 1.79%, a high since April 2, 2018.
Some netizens exclaimed that companies like Wynns shares, which you think are cyclical stocks, did not expect to become blue chip makers!
Two leading enterprises meet each other in a short fight
For a long time, the pig industry, Wens shares and muyuans shares, two large pig farmers, have dominated the north and the south by their respective breeding modes, and they are also catching up with each other in the capital market. The pig brother is full of fierce competition.
At the end of last year, two large pig farmers successively strengthened the layout of pig industry. On November 27, Wens company announced that its wholly-owned subsidiary, Wens product investment, intends to acquire 41.22% of the shares of Henan Xinda animal husbandry Co., Ltd. (hereinafter referred to as Xinda animal husbandry) with cash of 350 million yuan. At the same time, Wens property investment increased the cash investment of 460 million yuan to Xinda animal husbandry, and obtained 61.86% shares of Xinda animal husbandry.
Some analysts believe that this move will achieve a breakthrough in the layout of the pig industry in Henan, which also means that Wenshi shares have entered the headquarters of muyuan shares.
On the other hand, muyuan shares are not weak. On November 8 last year, muyuan announced that muyuan and Huaneng Guicheng Trust Co., Ltd. signed the strategic cooperation agreement. The total investment scale of Huaneng trust is expected to be no more than 10 billion yuan, and the total investment scale of muyuan is expected to be no more than 11 billion yuan.
Then on December 1, muyuan announced that it planned to set up 14 subsidiaries in six provinces, including Hebei, Shandong, Hubei, Jiangsu, Anhui and Henan, with a total investment of 140 million yuan. Up to now, muyuan has built 39 new subsidiaries in the year, and its expansion tentacles have gradually extended to the south of the Yangtze River.
In the A-share market, muyuan shares, with the influence of super pig cycle, welcomed the heavy position layout of public funds, Central Huijin, Beishang capital and other large institutions, and the performance in the first three quarters also showed signs of a sharp increase. Under multiple favorable conditions, the stock price of muyuan shares soared all the way. Last year, the stock price rose 3.6 times, and the market value of muyuan shares surpassed that of Wenshi shares.
Now, with the shipment of profit-making capital and the rise of Wenshis share price, the position of A-share pig farmer has been reversed again.
However, from the basic point of view, the pig raising income of muyuan shares still occupies an absolute leading position. On the one hand, the profitability of muyuan shares still occupies a leading position; on the other hand, the business of muyuan shares is more centralized, while Wenshi shares take into account both pig raising and chicken raising industries, and muyuan shares are more pure as the pork leading shares.
According to institutional analysis, compared with industry companies, muyuan has excellent control over costs and expenses. The cost advantage is not obvious when the price of pork is high at present, but when the price of pork falls to the bottom, the cost advantage of muyuan shares leading the industry average level will be reflected: when the peer company is in a loss state, it still has profits. Some organizations have predicted that the profit of muyuan stock will reach 60 billion yuan in 2020.
Industry expansion ushers in the peak
Organization: pork market is not over yet
It is worth noting that in addition to two large pig raising households, Wenshi and muyuan, more and more listed companies have joined the pig raising army with the stronger market, the sharp increase of pork price and the prominent benefits.
As early as last June, tianbang Co., Ltd. announced that it planned to cooperate with Zhejiang agricultural development group to build an industrial base of 5 million pigs in five years. In the same month, Tang Renshen also announced that it planned to invest 300 million yuan to set up a pig green breeding project in Lufeng County, which will generate 150000 pigs annually after the production.
On November 14, comdale announced that it had signed the investment framework agreement on the 600000 pigs industrial chain project launched annually by comdale with the agricultural and rural Bureau of Meizhou City, Guangdong Province, with an investment amount of about 1.5 billion yuan.
According to incomplete statistics, last year, a number of companies including Kangda, TangRenShen, muyuan, Wenshi, Longda meat, jinxinnong, Zhengbang technology, aonong biology, new hope, Yisheng, Huatong, Hefeng animal husbandry, etc. disclosed announcements successively, and entered the local pig industry. For a while, the listed companies were popular in the pig farm.
Although there are more and more entrants, the supply of pork capacity will not recover so fast. According to e company, Dong Mi Mei Jin Fang of Wynn said in an interview earlier that the data of domestic sows that can be bred in recent months still maintained a downward trend, so the additional production capacity of each company will not have a big impact on the price of pigs in the short term. At present, the difference between supply and demand in the market is still large, and the phenomenon of pig shortage is still obvious.
At present, the capacity recovery of domestic pig supply end is not obvious, nor can it be so fast. Although many companies have arranged capacity in the early stage, there will still be a time gap when it comes to the specific implementation, and it will take until next year to basically see the timeliness at the supply end. Mei said.
Zhang Lili, an analyst with Zhuo Chuang pig, also said the current supply side gap in the pig market is still difficult to fill. Pigs have a growth cycle, not to that time, how can not make up. At present, the pigs on the market are all sows 10-12 months ago.
Although the price of swine fever vaccine has fallen in part before, the current situation of swine fever vaccine continues. Many institutions judge that the price of swine fever will still run at a high level this year, and the pork market is not over. Huachuang securities research report pointed out that in the near future, the continuous fluctuation of pig price is related to the impact of reserve meat selling. With the double festival approaching, the policy control efforts may be further enhanced, and the continuous prosperity of pig breeding industry will continue to be optimistic. With the repeated epidemic, the mainstream pig enterprises will usher in a huge expansion opportunity. Analysts of Soochow securities also said that from the perspective of supply and demand pattern, there is a supply gap of nearly 17 million tons of pork in 2020 compared with 2018, and an increase of about 4 million tons compared with 2019. It is expected that in the first half of 2020, the supply of pork will remain in a state of shortage. In the second half of the year, the price of pork will fall slowly, and the average price of the whole year will remain high operation, and the performance of pig breeding enterprises will be highly determined. Source: editor in charge of China Fund News: Yang bin_nf4368
Although the price of swine fever vaccine has fallen in part before, the current situation of swine fever vaccine continues. Many institutions judge that the price of swine fever will still run at a high level this year, and the pork market is not over.
Huachuang securities research report pointed out that in the near future, the continuous fluctuation of pig price is related to the impact of reserve meat selling. With the double festival approaching, the policy control efforts may be further enhanced, and the continuous prosperity of pig breeding industry will continue to be optimistic. With the repeated epidemic, the mainstream pig enterprises will usher in a huge expansion opportunity.
Analysts of Soochow securities also said that from the perspective of supply and demand pattern, there is a supply gap of nearly 17 million tons of pork in 2020 compared with 2018, and an increase of about 4 million tons compared with 2019. It is expected that in the first half of 2020, the supply of pork will remain in a state of shortage. In the second half of the year, the price of pork will fall slowly, and the average price of the whole year will remain high operation, and the performance of pig breeding enterprises will be highly determined.