Chinanews client, Beijing, July 23 (Reporter Xie Yiguan) "2019 is the year of the pig, and 2020 is the year of pig raising."
With the intensive release of the 2020 interim results announcements of listed companies, the pig breeding industry has become a "superior student", and even the half-year performance of pig breeding companies has soared by 70 times. Among the "rich" pig companies Debut".
Data map: farm. Photo by China News Agency reporter Lin Hao
Profits of pig raising companies doubled, Muyuan shares surged 70 times
The pig farming industry, which was "booming" in the quarterly report, is still "bullish" in the 2020 semi-annual report. In terms of performance announcements of listed companies, the net profits of leading pig breeding companies have doubled.
"While you are still hesitating for 40 yuan a catty of ribs, pig farming companies have already reaped tens of billions of net profits in half a year." Some netizens commented this way.
"Which one is strong in pig breeding, Nanyang, Henan finds Muyuan".
The semi-annual report of Muyuan shares shows that in the first half of the year, revenue was 21.033 billion yuan, a year-on-year increase of 193.76%, and the net profit attributable to shareholders of the parent company was 10.784 billion yuan, a year-on-year increase of 7026.08%, successfully turning losses into profits. Muyuan's net profit growth rate of 70 times is among the more than 3,000 listed companies, which can be described as the leader.
The net profit of Wen's shares and New Hope among the leading pig raising companies also increased steadily. On July 13, Wen's shares announced that the net profit attributable to shareholders of listed companies in the first half of the year was 4 billion to 4.25 billion yuan, a year-on-year increase of 189.24% to 207.32%; on the same day, New Hope announced that it expected the net profit attributable to shareholders of the parent company in the first half of the year. 3.15 billion-3.2 billion yuan, a year-on-year increase of 101.68% -104.88%.
However, in terms of profit return, Wen's shares, which implement the "company + farmer" model, and Muyuan shares, which insist on "self-reproduction and self-support", are widening the gap.
"In 2019, the cost of each pig in Wen's stock is 178 yuan, and Muyuan is 120 yuan." China Merchants Securities pointed out that the two companies have obtained low-cost advantages in the market with different breeding models. Wen's light-asset model leads to low depreciation and low financial costs, but the cost of raising farms is high; while Muyuan integrated breeding has heavy assets, high depreciation and financial costs, but higher labor efficiency makes its labor costs lower.
It is worth mentioning that as the industry continues to prosper, the profits of other large-scale pig breeding companies have also increased significantly, and the profit gap with leading companies has gradually narrowed.
Zhengbang Technology expects that the net profit attributable to shareholders of listed companies in the first half of the year is 2.35 billion yuan to 2.45 billion yuan, an increase of 954.79% to 991.16% year-on-year; Tiankang Bio expects that the net profit attributable to shareholders of listed companies in the first half of the year is 810 million yuan to 860 million yuan, year-on-year An increase of 912.35%-974.84%; Tang Renshen expects that the net profit attributable to shareholders of listed companies in the first half of the year will be 400 million to 450 million yuan, a year-on-year increase of 788.58%-899.66%.
Raising pigs to become huge wealth, Muyuan shares, New Hope Boss rich list soared
For the reasons for the significant increase in performance in the first half of the year, the reasons given by the pig breeding companies are roughly the same: mainly due to the continuous impact of the African swine fever epidemic, the supply situation of the pig market during the reporting period was tight, and the price of pigs continued to run at a high level, resulting in a significant increase in net profit .
“The price of pork this year is more expensive than in previous years. The most expensive at the beginning of the year was more than 30 yuan a catty. After slowly falling to more than 20 yuan, now it’s 30 yuan again.” A resident in Beijing said. . According to data from the Ministry of Agriculture and Rural Affairs, the national average price of live pigs in the first half of the year was 33.90 yuan/kg, an increase of 136.95% compared to the same period last year.
Data map: Pork sold in a vegetable market in Fengtai District, Beijing at the end of May. Photo by Xie Yiguan
The high price of pork has boosted corporate profits, and the capital market has also favored pig breeding companies.
Wind data shows that as of July 22, stocks in the stockbreeding sector averaged an annual increase of 30.36%. Among them, Muyuan shares increased by 79.88%, New Hope increased by 61.76%, Tangrenshen increased by 29.18%, Zhengbang Technology increased by 20.52%. In contrast, the real estate sector has only increased by 3.86% since the beginning of the year. Is the profit increase of real estate better than pig raising?
Compared with the performance of pig raising companies, the performance of real estate development companies is uneven. Among the 55 real estate companies that have announced their performance forecasts, only 15 have predicted an increase in performance and turned losses, and 28 have predicted a decrease in performance, first loss, and continued loss, of which 13 have suffered first loss in performance.
As of July 22, in addition to the significant "shrinking" of the market value of Wen's shares, the market value of pig-raising companies such as Zhengbang Technology, Tianbang shares, and Aonong Biotechnology have increased to a large extent. The market value of Muyuan shares, known as "Pig in Maotai", has reached 350.5 billion yuan, an increase of 158.542 billion yuan in market value since the beginning of the year; the market value of New Hope has increased by 51.267 billion yuan.
The market value has greatly increased, and the net worth of the bigwigs of pig breeding companies has continued to rise. Recently, the Hurun Research Institute released the "Special Report on Changes in Global Entrepreneurs Wealth Four Months After the Epidemic", showing that Qin Yinglin and Qian Ying of Muyuan shares rose by 6 places, ranking 50th with a wealth of 150 billion yuan; New Hope Liu Yonghao's family has risen 58 places, ranking 72nd with a fortune of 115 billion yuan.
Can pig raising continue to make big money in the second half of the year?
According to data from the Ministry of Agriculture and Rural Affairs, pork prices have continued to rise since June.
"Pork prices have changed drastically recently." On the 21st, a street vendor selling pork at a vegetable market in Fengtai District, Beijing, said, "For Qianjian, the price rose from 26 yuan to 28 yuan per catty, and then to 30 yuan until The current 32 yuan is rising step by step."
"If you came to buy it last week, you could buy pork for less than 30 yuan (per catty) when you run into an event, and now there is no meat less than 30 yuan on the stall." The vendor added.
The picture shows the pork sold in a vegetable market in Fengtai District, Beijing on July 21. Photo by Xie Yiguan
How long will this wave of pork prices last? Is it possible for pig breeding companies to maintain high profits throughout the year?
"Pork price trends in the second half of the year need to be determined according to the epidemic situation." Feng Yonghui, an analyst at China Live Pig Warning Network, told Chinanews.com. "If the epidemic continues to stabilize, pork price trends will continue to fall." "Pork prices are expected to remain in the second half of this year. The steady decline may fluctuate with seasonal and festive demand changes.” Meng Wei, a spokesman for the National Development and Reform Commission, said on June 16.
"Pig prices should generally be on a downward trend, but since the average cost of the industry has risen significantly compared to before the occurrence of African swine fever, if the price drops too fast in the short term, it will have an impact on the subsequent recovery of production capacity. "Muyuan shares said during institutional research.
According to Feng Yonghui's analysis, the average price of pork in the first half of the year was around 32 to 33 yuan, and it should be around 30 yuan in the second half. Under such circumstances, the profit growth rate of pig breeding companies in the second half of the year may be slightly lower than that of the first half. In the long run, the most decisive thing is when the industry's cyclical time turning point will appear. (Finish)