China News Service, August 17th (Xie Yiguan, a reporter from China-News Finance and Economics) In the first half of this year, the price of pork "first decreased and then increased". What is the performance of pig companies?

　　As of August 16, more than a dozen listed pig companies have announced their performance forecasts or performance reports for the first half of the year. Judging from the financial reports, the vast majority of listed pig companies are still facing losses.

Data map.

Photo courtesy of Changchun Customs

Pig companies' performance in the first half of the year is "dismal"

　　Recently, Muyuan shares disclosed the semi-annual performance forecast. It is estimated that the net profit loss attributable to shareholders of the listed company during the reporting period is 6.3 billion to 6.9 billion yuan, a decrease of 166.13% to 172.43% over the same period of the previous year.

　　"Pigma" fell into a pre-loss, and other listed pig companies had a difficult time.

　　Zhengbang Technology's performance forecast predicts that the net profit attributable to shareholders of listed companies will be 3.8 billion to 4.6 billion yuan, a decrease of 165.72% to 221.66% over the same period of the previous year.

　　In the first half of this year, Zhengbang Technology, a "big pig farmer", has been in constant turmoil.

In addition to the rumors of "applying for bankruptcy", letters of concern have also been received due to the proposed sale of equity in several holding subsidiaries and cross-border "new energy". Having attention.

　　Although some rumors have been refuted, the share price of Zhengbang Technology has fallen frequently, and the share price has been "waist down" compared to the beginning of the year.

Zhengbang Technology's stock price chart.

　　"Leading pig enterprises" Wen's shares and New Hope also suffered huge losses in the first half of the year.

Among them, Wen's shares are expected to have a net profit loss of 3.517 billion yuan attributable to shareholders of listed companies, a year-on-year decrease of 40.8%; New Hope's expected net profit loss attributable to shareholders of listed companies is 3.9 billion to 4.2 billion yuan, a year-on-year increase of 4.2 billion yuan. Down 14.20% to 22.98%.

　　On July 15, Liu Yonghao, chairman of New Hope Group, said to the public that in the past two years, the breeding industry has experienced great pressure and uncertainty, the industry has endured huge challenges, and enterprises are facing various difficulties. Liuhe has also experienced a loss that has never been seen in history.

　　Judging from the current announcements of listed pig companies, only Tianbang Foods has not suffered losses.

However, Tianbang Food explained that the company's net profit attributable to shareholders of listed companies in the first half of 2022 turned losses into profits, mainly contributed by the investment income of 1.394 billion yuan from the transfer of 51% equity of the subsidiary, and the net profit after deducting non-recurring gains and losses. still negative.

　　However, benefiting from the increase in live pig prices in the

second quarter, the performance of listed pig companies

in the second quarter has improved .

　　For example, Tianbang Foods said that from a trend point of view, with the gradual recovery of pig prices in the second quarter and the stabilization and recovery of the company’s live pig production capacity, the efficiency has improved, and the loss in the second quarter has narrowed significantly compared with the first quarter.

Data map.

Photo by Chen Yongnuo

The price of live pigs fell into a "trough" in the first half of the year

　　"The number of live pigs sold has increased significantly year-on-year, while the price of live pigs has dropped significantly year-on-year, resulting in a significant decline in the company's operating performance in the first half of 2022 compared with the same period last year." Muyuan shares explained the pre-loss in the first half of the year.

　　This is also the main reason for the loss of net profit of most pig companies in the first half of the year.

　　According to Wang Guirong, director of the Rural Social and Economic Survey Department of the National Bureau of Statistics, in the first half of the year, 365.87 million live pigs were sold across the country, an increase of 28.45 million or 8.4% over the same period last year.

　　In terms of prices, in March, the price of pork fell below 10 yuan per catty, a year-on-year drop of more than 50%.

Since the end of March, although pork prices have continued to rise, pork prices in the second quarter have not yet reached the high point of the same period last year.

　　"In June, the monthly average wholesale price of pork was 21.57 yuan per kilogram, a month-on-month increase of 4.3% and a year-on-year decrease of 8.2%." According to data from the Ministry of Agriculture and Rural Affairs.

　　"From the perspective of breeding efficiency, the price of pigs in the first half of this year was generally sluggish, and most farms (households) suffered losses." Chen Guanghua, head of the Animal Husbandry and Veterinary Bureau of the Ministry of Agriculture and Rural Affairs, pointed out on July 20 that according to our monitoring, except for January and In addition to the slight profit in pig raising in June, it was in losses from February to May. In the first half of the year, a fat pig sold for slaughter lost an average of 98 yuan. The real turnaround is more than half a month.

　　In addition, some listed pig companies mentioned that the price of feed was high in the first half of the year, which brought pressure to the company's main business, pig breeding.

　　"From the perspective of breeding costs, the prices of corn and soybean meal have continued to rise, and the cost of one kilogram of fat pigs has increased by about 1 yuan compared with the same period last year." Chen Guanghua said.

Data map.

Photo by China News Agency reporter Tian Yuhao

Pig prices rise and fall, leading pig companies may turn losses in an all-round way

　　The rise in pork prices in recent months is also considered by some institutions as a new round of "pig cycle" has started.

　　Everbright Securities pointed out that a new round of pig cycle started in April this year. From the second half of this year to the beginning of next year, pig prices are expected to be in an upward channel.

The price of pigs will fluctuate at a high level in the third quarter, and the peak demand season will be ushered in the fourth quarter, and there is a possibility that the price of pigs will rise further.

　　Zhuo Chuang Information analyst Wang Yanan said that as the pig market entered an upward cycle, the price of pigs exceeded the cost line, and the profitability of breeding improved.

　　"According to the monitoring of Zhuochuang Information, after entering June, the price of live pigs continued to rise. As of August 3, the average price of live pig transactions at this stage was 19.70 yuan/kg. For breeding units, in the case of the overall increase in pig prices , the profit of pig breeding is relatively considerable." Wang Yanan said.

　　The July live pig sales briefing disclosed by Muyuan shares showed that the average sales price of commercial pigs was 21.33 yuan/kg, up 29.04% from June.

　　Western Securities believes that the current total cost of live pig breeding for listed pig companies is 16-18 yuan/kg. The current average price of live pigs can cover the full cost, and the operating cash flow of leading companies is expected to quickly turn positive.

If the price of pigs remains at a high level, the top pig companies will turn losses in an all-round way, which will benefit the annual performance.

(Finish)