Poultry breeding facing double epidemic impact on leading listed companies: trivial matters

category:Finance
 Poultry breeding facing double epidemic impact on leading listed companies: trivial matters


Small and medium-sized enterprises are greatly affected

Before and after the Spring Festival, Henan, Anhui, Hubei, Shanghai and many cities closed the live poultry trading market within their jurisdiction. In addition, the road transportation caused by the spread of the epidemic is not smooth, and poultry breeding enterprises can not transport chickens, eggs, chickens and other goods, such as feed, which has a certain impact on small and medium-sized poultry enterprises.

Securities Times u00b7 e company reporter learned that in Luohe, Henan, Shandong and other places, there are cases of live burial to deal with newly hatched poultry cubs.

There is no breeding ground, no feed, and even if there is feed, it cant afford the cost. Coupled with the difficulty of transportation, the owners of the breeding farm can only have long pain rather than short pain. A person in charge of a poultry breeding enterprise in Shandong Province told securities times u00b7 e company that the breeding conditions of chicken seedlings are harsh. If they cant be sold on time, they can only starve to death and freeze to death. However, the above-mentioned poultry breeding enterprises got the pass in time to transport the newly hatched chicks out. He later said that they would not hatch any more chicks in the near future.

Li Xia, an analyst with Zhuo Chuang information, told the securities times e company that at present, the epidemic has hit poultry breeding enterprises. But Li said there were not many extreme cases. I learned from some customers in the south that as long as the transport drivers instructions are to transport feed, it can pass, whether its a highway or an ordinary highway. The same is true for the delivery of eggs. Even in the village head, they can also be traded in the village head, without hindrance.

So, has the current epidemic affected the production and operation of large poultry listed companies?

On February 4, prebiotics Co., Ltd. disclosed the announcement that the new coronavirus pneumonia epidemic did not have a significant impact on the companys production and operation. The announcement introduced the impact of the epidemic on the company from three aspects: personnel management, production and operation management, and transportation security. In terms of personnel management, the company formulated and issued a notice on prevention and control of new coronavirus, suspended the recruitment of new employees, delayed the return time of employees, closed all fields, and prohibited personnel from entering and leaving except for special circumstances. Prebiotics Co., Ltd. provides employees with anti epidemic products such as disinfectant, alcohol and mask free of charge. At present, no confirmed or suspected cases of the new coronavirus have been found among all employees of the company and its subsidiaries.

In terms of production, operation and management, the Spring Festival holiday of Yisheng Co., Ltd. was not centralized, so there were sufficient personnel in the site; the companys feed was directly supplied by its subordinate feed factory. The companys production and operation are stable and not greatly affected by the epidemic. In terms of transportation guarantee, the companys production and chicken seedling sales and transportation are smooth, not greatly affected by the epidemic.

On February 3, Minhe said in response to questions from investors on the interactive platform of investor relations that due to the particularity of the companys business, employees of the breeding business department also stayed in the factory during the new year, and the epidemic has not had a significant impact on production and operation at present. However, due to the traffic control caused by the epidemic, the raw materials such as feed and chicken seedlings of the farmers can not enter and leave normally, which impacts the sales price of chicken seedling products and reduces the sales price.

An industry insider told securities times u00b7 e that the epidemic had a great impact on small and medium-sized poultry breeding enterprises in remote areas, while the industrial chain of large-scale poultry breeding enterprises was relatively complete and less affected. For example, Xiantan Co., Ltd. and Shengnong Development Co., Ltd. have upstream and downstream industrial chains such as broiler breeding, feed and slaughtering, which are more able to withstand changes in the industry.

Farmers are not optimistic about the future market

In terms of the capital market, in 2019, poultry breeding listed companies are profitable, and in 2019, the performance soared, so did the share price.

It is estimated that in 2019, the net profit of the company will be 2.25-2.3 billion yuan, an increase of 520.11% - 533.89% year on year. Xiantan Co., Ltd. is expected to have a net profit of RMB 950-1.05 billion in 2019, with a year-on-year growth of 136.34% - 161.22%; compared with the same period in 2018, the sales price of chicken products of the company increased significantly year-on-year, and the companys profit also increased significantly. Minhe shares is expected to achieve a net profit of 1.6-1.65 billion yuan in 2019, with a year-on-year growth of 320% - 333%. Shengnong development said that the overall price of chicken rose significantly, and the price of products sold by the company exceeded previous expectations. It is estimated that the net profit in 2019 will be 4.08 billion yuan to 4.2 billion yuan, an increase of 171.01% - 178.98% year on year.

In the near future, the price of chicken seedlings shows a downward trend. In addition to the difficulties in transportation, the farmers are not optimistic about the future market of broilers, and the number of breeders who buy chicken seedlings is decreasing, which is also the reason why the price of chicken seedlings is falling, said the relevant person in charge of the above-mentioned poultry breeding enterprises in Shandong. Accompanied by the drop in the price of eggs, wholesale prices have fallen below the cost price of enterprises.

As a substitute of pork, poultry industry has the characteristics of cyclical stocks. After the sharp rise in 2019, since 2020, the share price of Listed Companies in the poultry industry has witnessed a large downward shock.

In addition to the outbreak of new coronavirus pneumonia, there are also new outbreaks of avian influenza in Hunan Province. On February 1, a highly pathogenic H5N1 avian influenza outbreak occurred in Shaoyang City, Hunan Province. According to the announcement, a farmer in Shuangqing District raised 7850 chickens, 4500 of which died. 17828 poultry have been killed in the area. All the dead and slaughtered poultry have been treated innocuously. Bad news has brought a degree of panic to investors in poultry breeding enterprises.

Recent performance of chicken concept stocks

In order to fight against the new crown epidemic, Minhe shares and Xiantan shares have donated. Securities Times u00b7 e company learned that in order to fight against the epidemic, Minhe shares successively donated 5.5 million yuan to Hubei, Yantai, Penglai and other places. On February 1, Minhe Co., Ltd. donated 5 million yuan to Yantai Red Cross Society; on February 2, sun Xianxian, general manager of the company, donated food, plastic gloves, etc. to donglukou of national highway 228, Penglai toll station of Pengqi expressway, etc. In addition, on January 30, Minhe Co., Ltd. donated 5000 masks to the leading group (Headquarters) for the treatment of pneumonia infected by the new coronavirus in Penglai City, and on January 31, the company donated another 500000 yuan to it. Recently, Wang Shouchun, chairman of Xiantan Co., Ltd., donated 1.2 million yuan to Mouping Red Cross Society in his own name to purchase medical supplies and other materials to fight the epidemic.

Ministry of agriculture and rural areas untie poultry and feed transport

At the beginning of the epidemic, many provinces not only closed the wildlife market, but also set strict conditions for the trade and circulation of live poultry. For example, Shandong Animal Husbandry Bureau issued a document to cooperate with the market supervision department to completely close all kinds of market live poultry trading areas and slaughtering points, and suspend the quarantine of live poultry trading and slaughtering in all kinds of markets. Suspension of inter provincial transfer of live poultry. In order to ensure effective market supply and orderly production, if trans provincial transportation is really necessary, on the basis of strict monitoring and application of enterprises, point-to-point transportation from farms to slaughterhouses and farms to farms shall be carried out. If a general transfer of live poultry is found at an inter provincial road inspection station, it shall be advised to return.

But the government is concerned about the impact of the outbreak on poultry farming enterprises. On April 4, the general office of the Ministry of agriculture and rural areas issued the emergency notice on maintaining the normal production and marketing order of animal husbandry and ensuring the market supply of meat, egg and milk, which mainly includes the following six articles:

1u3001 It is not allowed to intercept transport vehicles of young livestock and breeding livestock and poultry. It is necessary to unblock the transportation channels for young animals and breeding animals and poultry, meet the production needs of stockbreeding farms, maintain normal production and operation activities, and consolidate the basic production capacity of animal husbandry.

2u3001 Do not intercept feed transport vehicles. The transportation channels of feed materials such as feed and corn should be unblocked, and point-to-point production and distribution should be encouraged to meet the feed demand of livestock and poultry breeding, so as to avoid the grain shortage of livestock and poultry affecting production and supply.

3u3001 Do not intercept livestock products transport vehicles. We need to promote the inclusion of transport vehicles such as commercial livestock and poultry, eggs and fresh milk into the green channel for the supply of important materials, coordinate the handling of traffic passes, solve the problems existing in the transport process, ensure that livestock products are transported to the production line and the consumption line, and prevent the occurrence of selling difficulties and supply cut-off.

4u3001 Do not close slaughterhouses. We should ensure the normal operation of slaughterhouses, encourage the establishment of point-to-point transportation system, strengthen the connection between production and marketing, strictly implement the requirements of slaughtering quarantine, and ensure the market supply and product quality and safety.

5u3001 Do not close the village. We should strictly implement the requirements of one break and three continuity, immediately check the traffic conditions of rural roads, forbid the acts of setting up cards to intercept without the approval of the local peoples government at or above the county level, opening and blocking the roads at will, unblock the transportation obstruction, and ensure the smooth access to key places such as livestock farms, slaughtering and processing of livestock products, and trading markets. 6u3001 Support enterprises to return to work as soon as possible. At the same time of effective prevention and control of the epidemic situation, all localities should arrange as soon as possible the resumption of production and processing enterprises such as feed, slaughtering, breeding livestock and poultry, processing and packaging materials for animal products, increase market supply, and ensure the normal operation of breeding enterprises and animal product processing enterprises. Before that, on January 30, the relevant departments of the State Council had noticed the difficulties faced by poultry breeding enterprises and issued targeted documents. The general office of the Ministry of agriculture and rural areas, the general office of the Ministry of transport and the general office of the Ministry of Public Security issued a notice to ensure the smooth transportation of fresh agricultural products. Feed production and slaughtering enterprises should speed up the recovery of production, meet the feed demand of livestock and poultry breeding and increase the effective supply of livestock and poultry products on the basis of doing a good job in the prevention and control of pneumonia caused by new coronavirus infection. Source: e company editor in charge: Yang bin_nf4368

5u3001 Do not close the village. We should strictly implement the requirements of one break and three continuity, immediately check the traffic conditions of rural roads, forbid the acts of setting up cards to intercept without the approval of the local peoples government at or above the county level, opening and blocking the roads at will, unblock the transportation obstruction, and ensure the smooth access to key places such as livestock farms, slaughtering and processing of livestock products, and trading markets.

6u3001 Support enterprises to return to work as soon as possible. At the same time of effective prevention and control of the epidemic situation, all localities should arrange as soon as possible the resumption of production and processing enterprises such as feed, slaughtering, breeding livestock and poultry, processing and packaging materials for animal products, increase market supply, and ensure the normal operation of breeding enterprises and animal product processing enterprises.

Before that, on January 30, the relevant departments of the State Council had noticed the difficulties faced by poultry breeding enterprises and issued targeted documents. The general office of the Ministry of agriculture and rural areas, the general office of the Ministry of transport and the general office of the Ministry of Public Security issued a notice to ensure the smooth transportation of fresh agricultural products. Feed production and slaughtering enterprises should speed up the recovery of production, meet the feed demand of livestock and poultry breeding and increase the effective supply of livestock and poultry products on the basis of doing a good job in the prevention and control of pneumonia caused by new coronavirus infection.