New hope related person in charge said that when the company plans building pig breeding project, the cost is the biggest consideration. If the local pig price is high, it doesnt matter if the fixed asset investment is increased. You can plan to raise pigs in buildings.
During the disclosure period of the interim report, the performance of the head pig enterprises was brilliant. Muyuan shares, xinwufeng, Dabei agriculture and other three companies are expected to increase their net profit by more than 10 times in the first half of this year. In addition, several pork concept stocks such as Zhengbang technology, Tiankang biology, Tang Renshen and tianbang shares are expected to have a year-on-year increase of more than 100% in the first half of this year. Aonong biological report showed that the net profit of returning to the mother increased more than 15 times.
Tang Renshen, who just released the 2020 semi annual report last night, said that the companys net profit in the first half of the year increased by 859.06%, mainly due to the continuous rise in pig prices in 2020.
Today, CICC issued an article saying that the number of live pigs sold in China in the first quarter of 2020 was 131 million, falling to the lowest level in nearly 10 years. Pork prices remain high in the context of tight supply.
It predicted that in 2020, the number of live pigs will drop by 22% year-on-year, and the pork production will drop by 11%. From the demand side, if the consumption demand in the second half of the year returns to the same period in 2019, the pork supply gap in the third quarter will be large.
China Merchants Securities commented that for the most excellent industrialized and closed pig breeding enterprises, the performance rate of the next 6-8 quarters will continue to grow significantly month on month. Recently, Zhongbao is just the beginning.
At present, the cost center of pig breeding industry has increased from 13-15 yuan / kg to 18-20 yuan / kg. There is no room for a sharp drop in pig prices. A few excellent companies with low cost and rapid expansion are expected to maintain high profits in the next few years, and the profits will enter a weak cycle era. In the further data release, the dominant enterprises are expected to lead the plate out of the valuation repair market.
Certainty and a cost advantage that always leads the industry will be the main line of investment, it said. It is strongly recommended to take the lead in the stable implementation of African swine fever prevention and control, sustained high-speed growth in marketing, continuous optimization of costs, and development of settlement farming in the future, represented by muyuan shares. It is suggested that COFCO meat, a regional integration leader with substantial improvement in prevention and control, should be focused on.