Muyuan said that due to the continuous impact of the African swine fever epidemic, the pig market supply situation was tight last year, the overall sales price was significantly higher than the same period last year, and the companys main business profitability was significantly higher than the same period last year, which was the main reason for the significant increase in performance. Specific to four quarters:
In the first quarter, the whole industry was affected by the outbreak of African swine fever, and the sales price of pigs was extremely low;
Since the second quarter, the market supply and demand situation has changed, and the price of pigs has started to recover;
In the third quarter, the gap between supply and demand was further widened, and pig prices accelerated to rise;
In the fourth quarter, pig prices fell after hitting a record high, but remained at a high level.
Specifically, in terms of the companys operating performance, the net profit for the four quarters of the year was - 557 million yuan, 407 million yuan, 1604 million yuan and 4882 million yuan respectively.
As a leading domestic integrated pig breeding company, muyuan Co., Ltd. sold 10.2533 million pigs in 2019, including 8.6791 million commercial pigs, 1.5471 million piglets and 27100 breeding pigs. Muyuan pointed out that between 17.5 million and 20 million pigs are planned to be sold in 2020.
Yesterdays Research Report issued by CITIC Securities also predicted that muyuan shares may have bottomed out in the third quarter of last year, and that the number of Listed Companies in 2020 is likely to double to 20 million. With the scale-up of the industry, muyuan shares may even become the largest pig enterprise in China in the future. The market share in 2024 may reach 10% - 15%, and only 1.9% in 2019.
Last year, under the influence of African swine fever and pig cycle, the supply of pork market continued to be tight, and A-share pig sector continued to rise. In the whole year of 2019, muyuan shares increased by 209%; since this year, the share price has risen by about 30%.