Hunans first pig production company in the first half of the year

 Hunans first pig production company in the first half of the year

Continuous recovery of pig production capacity

According to the data of the National Bureau of statistics, at the end of the second quarter, the number of live pigs and reproducing sows in Hunan were 29.859 million and 2.989 million, respectively, up 5.1% and 4.5% compared with the end of the first quarter, and 10.7% and 20.5% higher than that at the end of the previous quarter, which has returned to 75.2% of the normal year at the end of 2017.

In June, the market price of live pigs was 31.2 yuan / kg, and the ratio of pig to grain was 16.6:1. Pig breeding continued to be in a high profit range. The enthusiasm of farmers to expand the hurdle was improved, the stock capacity increased steadily, and the new production capacity projects were accelerated. In particular, the recovery of reproducible sows laid a good foundation for the comprehensive recovery of pig production.

Yang Fu also believes that under the general tone of the government to protect peoples livelihood, it is difficult to see a sharp rise in pork prices. However, considering the current pig supply gap is large, consumer demand is expected to continue to improve in the third quarter, and pork prices are expected to remain high.

Performance of listed pig breeding companies increased

According to the first quarter report, new Wufeng achieved a net profit of 100 million yuan during the reporting period, turning losses into profits on a year-on-year basis. At the same time, the company expects the net profit in the first half of the year to be about 160 million yuan to 240 million yuan, which means that compared with the net profit of 6.01 million yuan in the same period of last year, the minimum growth rate of the company will be as high as 25.6 times, and the highest is expected to reach 38.9 times.

It is worth noting that new Wufeng plans to invest and increase capital in cash in another small and medium-sized pig enterprise, Guangzhou Zhuangzhuang Technology Development Co., Ltd. (hereinafter referred to as Zhuangzhuang Technology), and holds 90% of the shares of the latter, which will further expand the production capacity of pork. It is understood that after the acquisition and capital increase, Zhuangzhuang technology, a holding subsidiary of new Wufeng, will expand the production capacity of pork in Conghua, Guangzhou, including a breeding base for 26500 breeding sows, a breeding base for 4800 breeding sows, and a new boar station with 100 boars.

According to the forecast, the project will provide 64000 high-quality Sanyuan piglets of 7.0kg per year, 60000 high-quality commercial fattening pigs annually, the normal annual sales revenue is expected to be 136 million yuan, and the total annual profit is 23.99 million yuan.

As for the impact of the flood season that investors are concerned about, xinwufeng replied on the investor relations platform: the site selection and layout of the companys pig farms are reasonable, pay attention to the prevention and control of daily production, and formulate a more comprehensive response plan and measures. At present, the companys production and operation are normal and stable.

The performance of Tang Renshen Zhongbao, which is also a listed pig breeding company in Hunan Province, also performed well. According to the performance forecast, the companys net profit attributable to shareholders of Listed Companies in the first half of the year was about 400 million yuan to 450 million yuan, with a year-on-year increase of 788.58% - 899.66%.

Sun Shuangsheng, Director Secretary of Tang Renshen, told the Securities Daily: in the first half of the year, the company made a profit of 400 million yuan to 450 million yuan, with an average profit of about 1500 yuan. It is estimated that the company will sell 1.3 million to 1.5 million yuan this year, with a significant increase in the second half year compared with the first half year.