Zhongxin Finance, March 11 (Reporter Xie Yiguan) Listed companies have released their 2021 results intensively. To say which industry is the most "heartbroken", it may be the pig breeding industry.
"First loss" and "pre-reduction" shrouded the industry, and even the stock price fell rapidly.
Data map.
Photo courtesy of Changchun Customs
The performance of pig breeding enterprises is "dismal"
Judging from the pig enterprises that have announced their performance reports, the "king of giant losses" is none other than Zhengbang Technology.
The 2021 annual performance forecast disclosed by Zhengbang Technology shows that the net profit loss attributable to shareholders of listed companies is expected to be 18.2 billion to 19.7 billion yuan, a decrease of 416.84% to 442.96% over the same period of the previous year.
The amount of loss ranked first among pig breeding enterprises.
May be affected by the sharp drop in performance, from February 7th to 8th, Zhengbang Technology fell by the limit for two consecutive days.
Recently, there has also been a rumor in the market that "Zhengbang applied for bankruptcy and Jiangxi Province Grain and Oil took over", which was later refuted by Zhengbang Technology.
However, on March 4, Zhengbang Technology received a letter of concern from the Shenzhen Stock Exchange because it planned to sell the equity of several holding subsidiaries to Beijing Dabeinong Technology Group Co., Ltd.
Not only Zhengbang Technology, but also Wen's shares and New Hope, the leading pig breeding companies, also performed poorly, with both revenue and net profit declining.
Among them, Wen's shares' net profit loss attributable to shareholders of listed companies in 2021 is 13.337 billion yuan, a year-on-year decrease of 279.61%; New Hope expects a net profit loss of 8.6 billion to 9.6 billion yuan attributable to shareholders of listed companies in 2021, a year-on-year decrease of 273.94% -294.17%.
In addition, pig breeding companies such as Tianbang Co., Ltd., Aonong Bio, and Tangrenshen also suffered losses.
Even the "pigmao" Muyuan shares could not escape the pre-reduction in performance. The company expects that the net profit attributable to shareholders of listed companies in 2021 will be 6.5 billion to 8 billion yuan, a year-on-year decrease of 70.86%-76.32%.
Data map.
Photo by Chen Yongnuo
The price has plummeted, and the purchase price of live pigs is only 5 or 6 yuan per catty
When talking about the reasons for the loss of performance in 2021, many pig breeding companies mentioned that the price of pigs in 2021 will drop significantly compared with the same period of the previous year.
"At the beginning of 2021, the purchase price of wool pigs was 30 yuan/kg, which was still at a relatively high level. Yuan/kg, a big drop. So from the fourth quarter of 2021 to January 2022, almost all pig farmers are losing money." said Liu Yonghao, chairman of New Hope Group.
According to the market dynamics of domestic and foreign agricultural products released by the Department of Market and Information Technology of the Ministry of Agriculture and Rural Affairs, at the end of 2021, the weekly average price of pork in the wholesale market was 23.36 yuan per kilogram, compared with 46.28 yuan per kilogram at the beginning of the year, a cumulative decline of 49.5%.
In addition to the sharp drop in the price of live pigs, the rise in feed prices has also caused the cost of live pig breeding to rise sharply.
New Hope mentioned in the performance forecast that due to factors such as the continuous rise in the price of feed raw materials (the price of domestic corn hit a record high and the spot price of soybean meal also rose sharply), the cost of pig breeding increased significantly year-on-year.
According to data from the Ministry of Agriculture and Rural Affairs, in the fifth week of December 2021, the national average price of corn was 2.89 yuan/kg, up 9.5% year-on-year; the national average price of soybean meal was 3.78 yuan/kg, up 8.9% year-on-year; the average price of compound feed for fattening pigs was 3.64 yuan /kg, up 6.7% year-on-year.
Will the performance of pig farming enterprises remain bleak this year?
According to the monitoring of the Ministry of Agriculture and Rural Affairs, in the eighth week of 2022, the average weekly price of pork in the wholesale market was 19.04 yuan per kilogram, down 3.8% month-on-month and 51.7% lower year-on-year.
This also means that the wholesale price of pork has fallen below 10 yuan again.
A reporter from Zhongxin Finance recently visited a supermarket in Beijing and found that the price of the front buttocks and the rear buttocks is 12.9 yuan per catty, and the price of pork belly is 16.8 yuan per catty. Compared with two months ago, each catty has dropped by about two yuan.
Data map: Pork sold in a supermarket in Xicheng District, Beijing.
Photo by Chinanews reporter Xie Yiguan
"On February 25th, the profit loss of outsourced piglet breeding was 153.33 yuan/head, and the loss of self-propagation and self-raising was 481.8 yuan/head. The self-propagation and self-raising suffered losses for 11 consecutive weeks and the range was large. The prices of main feed materials such as soybean meal were high, and pig food The price comparison continued to be stable and down in the week." Guosheng Securities analyst Meng Xin pointed out.
In Meng Xin's view, the central government officially launched the purchase and storage of 40,000 tons on February 28. From the performance of pig prices, the role of price support is limited.
It is expected that in the first half of 2022, there will still be a peak of slaughtering that can be brought about by inertia, the probability of pig prices rising is small, and the deep loss of breeding will continue.
Wen Bin, chief researcher of China Minsheng Bank, said that after June 2021, the number of fertile sows will show a month-on-month downward trend. According to historical laws, it reflects that the impact on slaughter of live pigs is roughly 10 months behind, which is the second half of this year. Pork prices may enter a new round of increases.
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