Annual check of 29 pork companies: high price makes pigs fly

category:Finance
 Annual check of 29 pork companies: high price makes pigs fly


According to incomplete statistics from the reporter of Beijing News, in 2019, the performance of 29 pork concept stock companies mostly improved. In terms of revenue, 15 enterprises have revenue of more than 10 billion yuan, new hope, Wynns shares and Shuanghui development rank in the top three; in terms of net profit, except for the narrowing of Yurun Foods loss, other enterprises are in a profit state, and 10 enterprises have a net profit of more than 1 billion yuan. Among them, Wynn shares rely on one hundred and thirty-nine point six seven Billion yuan of net profit ranks first, becoming the only enterprise with a profit of more than 10 billion yuan.

In terms of performance, although in the first half of 2019, nearly half of the pork stock companies had a weak performance. However, due to the recovery of meat price in the second half of the year, by the end of 2019, only four enterprises had a decline in net profit, the largest decline was LUONIUSHAN, down 92.27% year on year. With a year-on-year growth of 1075.37%, muyuan shares has become the pork stock enterprise with the fastest net profit growth.

In the annual report, the breeding enterprises mentioned in succession that the high price of pigs promoted the increase of their own income in the year. According to the data of the Ministry of agriculture and rural areas, on December 31, 2019, the average price of pork in the national wholesale market of agricultural products was 43.25 yuan / kg, 128.59% higher than 18.92 yuan / kg on January 2, 2019. In the 52nd week of 2019, the weekly average price of lean white pork in 16 provinces (municipalities) was 43.98 yuan / kg, up 151.17% from 17.51 yuan / kg in the first week of 2019.

Behind the rise of pig price is the tight supply of pork market. In 2019, affected by African swine fever, Chinas pig production declined. According to the data of the National Bureau of statistics, in 2019, Chinas pork output will be 42.55 million tons, down 21.3% year on year; the number of pigs on hand will be 310 million, down 27.5% year on year; the number of pigs on hand will be 544 million, down 21.6% year on year.

Pork air outlet take off

Lei Jun, founder and CEO of Xiaomi, once described the need for entrepreneurship as standing on the tuyere, pigs can fly. Maybe Lei Jun didnt think that in 2019, the pig really flew. The pork price keeps rising in the year, which makes the pork stock attract more and more attention in the secondary market. According to Dongfang wealth choice data, from January 2, 2019 to December 31, 2019, the index of pork sector is from eight hundred and seventeen point four seven Soar to one thousand three hundred and fifty-nine point three two , up to 66.28% u3002

According to the calculation of the Beijing News, in 2019, the share prices of four representative enterprises, muyuan, Wenshi, Zhengbang technology and tianbang, rose by 206.07%, 28.49%, 203.94% and 79.79% respectively. Among them, the highest share prices of Wynn, Zhengbang technology and tianbang in the year are from March to April 2019. As of December 31, 2019, the total market value of muyuan shares and Wenshi shares exceeded 170 billion yuan, reaching 195781 million yuan and 178.483 billion yuan.

Wu Li, Wei Zhenya and Chen Xiao, analysts of Tianfeng securities, pointed out in the research report that the pig industry in 2019 has a strong allocation value. In the next 2-3 years, it will be a period of rapid expansion of the profit boom cycle of the pig industry plus that of the top listed companies, which is a wave of long-term volume rise.

Ma Li, Chen tengxi and Jin Han, analysts of Soochow securities, also said in the research report that in this round of pig cycle, the production capacity will be further reduced, and leading enterprises will realize rapid expansion with multiple advantages such as epidemic prevention, cost, capital, land and talent reserve. After this round of accelerated industrial integration, the long-term market share of leading enterprises is expected to reach the mature steady-state level in the United States, with abundant growth momentum.

Multi field companies focus on pig development

Or see the huge profits brought by pork, many of its pork concept companies involved in multiple fields at the same time have chosen to increase investment in pig breeding.

In March 2020, LUONIUSHAN announced that it plans to divest its real estate business with 1.5 billion yuan. After the transfer, LUONIUSHAN will focus on the main livestock industry and return to the first echelon of animal husbandry. Subsequently, Luo Niushan plans to raise no more than twenty-seven point eight Billion yuan, invested in seven pig breeding projects and replenished the companys working capital.

Compared with LUONIUSHAN, more enterprises choose to pay more attention to pig breeding industry on the basis of multiple development. In November 2019, Yisheng Co., Ltd., a leading enterprise of white feather broiler, accelerated the layout of pig breeding industry, and developed pig breeding and pig breeding business by increasing capital and shares to Beijing sifanghong Technology Co., Ltd. In December of the same year, probiotics Co., Ltd. and Heilongjiang eighth five year second farm co invested 1.36 billion yuan to build Heilongjiang annual slaughter processing 2 million pigs agricultural industrialization ecological recycling project breeding end project, which reached the cooperation intention, and will build a breeding sow farm with a total stock of 81600 pigs. Yisheng said the cooperation aims to cultivate new profit growth points to enhance the companys comprehensive competitiveness, which is in line with the long-term development strategy.

New hope Liuhe, which made a lot of profits in the pig industry last year, also plans to increase investment in this field. At the 2019 performance briefing, Liu Chang, chairman of new hope Liuhe, said bluntly, pig farming business will be the most important focus of new hope Liuhe. In 2019, new hope Liuhe, the main feed business, realized a revenue of 82.051 billion yuan, an increase of 18.81% year on year. Among them, although the revenue of pig industry only accounts for 9.12%, the year-on-year growth rate of 132.16% leaves feed, poultry industry, food, commerce and other sectors far behind.

According to Deng Cheng, director and President of new hope Liuhe, new hope Liuhe has started to allocate part of its feed factories to the pig industry. In the future, new hope Liuhe will incline all its resources to the pig industry. In his view, novel coronavirus pneumonia will overlay the African swine fever epidemic and the boom cycle of pig industry will also lengthen.

Wang Siyang, reporter of Beijing News

Source: responsible editor of Beijing News: Yang bin_nf4368