China News Service, November 3 (Xie Yiguan, China-News Finance and Economics reporter) The announcement of the third-quarter report of listed companies has been completed, and the third-quarter results of pig-raising companies have also "surfaced".
The price of live pigs has risen, and many pig enterprises have turned losses into profits and entered the ranks of "blue-chip students".
Data map.
Photo by Chen Yongnuo
More than half of pig companies turn losses into profits
Among the listed pig companies in the first half of the year, only Tianbang Foods did not suffer losses.
With the announcement of the third quarter report, the loss situation of the industry has been reversed.
A reporter from Zhongxin Finance and Economics found that more than half of the listed pig companies had a positive net profit in the first three quarters. Among them, the net profit of pig companies such as Tianbang Foods, Tangrenshen, Wen's Shares, and Luoniushan more than doubled year-on-year.
Among the leading pig enterprises, Muyuan achieved revenue of 80.774 billion yuan in the first three quarters, a year-on-year increase of 43.52%, and net profit attributable to shareholders of listed companies was 1.512 billion yuan.
Not only has it successfully turned losses, it also ranks first in net profit among more than a dozen listed pig companies.
Wen's shares also got rid of the loss situation. In the first three quarters, the revenue was 55.861 billion yuan, a year-on-year increase of 19.95%, and the net profit attributable to shareholders of the listed company was 686 million yuan, a year-on-year increase of 107.07%.
Although New Hope has not yet turned a profit, it has become the "revenue king" among listed pig companies with revenue of 100.419 billion yuan in the first three quarters.
If you only sort out the financial reports of listed pig companies in the third quarter, you will find that many pig companies have particularly outstanding performance in the third quarter.
For example, Muyuan achieved revenue of 36.506 billion yuan in the third quarter, a year-on-year increase of 147.60%; net profit attributable to shareholders of listed companies was 8.196 billion yuan, a year-on-year increase of 1097.41%.
However, there are also pig companies that have doubled their revenue and profits.
The former "big pig farmer" Zhengbang Technology's revenue in the first three quarters was 13.376 billion yuan, a year-on-year decrease of 66.54%, and the net profit attributable to shareholders of listed companies was 7.644 billion yuan.
Even in the third quarter, it did not get rid of the situation of performance losses.
Data map: Chongming, Shanghai, residents buy pork at the Miaozhen market.
Photo by China News Agency reporter Tian Yuhao
Rising hog prices boost performance
For more than half of the listed pig companies to turn losses into profits, Li Guoxiang, a researcher at the Rural Development Institute of the Chinese Academy of Social Sciences, told Zhongxin Finance and Economics that the rise in live pig prices was the main factor.
In the first quarter of this year, due to the seasonal consumption slack season and high supply, the price of live pigs was sluggish.
In the second quarter, the supply of live pigs tightened, and pig prices began to rise.
From late June to early July, there was a rapid rise in pig prices, and after mid-July, it entered a plateau period of stable and slightly rising.
A reporter from Zhongxin Finance reviewed the data from the Ministry of Agriculture and Rural Affairs and found that as of the end of the third quarter of this year, the average price of pork in the national agricultural wholesale market has increased by 38.65%, of which the increase in the third quarter alone has reached 32.78%.
The rise in live pig prices, coupled with the reduction of costs and efficiency gains by pig companies, has also driven the profitability of pig farming.
According to Meng Weixiao, an analyst at Zheshang Securities, based on monthly sales reports and performance estimates, the average profit of Muyuan's commodity pig heads in the third quarter was about 660 yuan, a significant improvement compared to the second quarter's profit.
"According to estimates, the average profit of a live pig in the first 8 months is 77 yuan. If the current price level is maintained, it is expected that the average annual profit will return to the normal profit range of about 200 yuan." The head of the Animal Husbandry and Veterinary Bureau of the Ministry of Agriculture and Rural Affairs previously express.
Data map.
Photo courtesy of Changchun Customs
Profits of pig companies may rise further in the fourth quarter
Entering the fourth quarter, pork prices remained stable and rising.
According to the Ministry of Agriculture and Rural Affairs' Department of Marketing and Information Technology, in the 42nd week of 2022 (October 17-23), the average weekly price of pork in the wholesale market was 35.36 yuan per kilogram, a month-on-month increase of 3.8%, a slight increase for 9 consecutive weeks and a year-on-year increase. rose 75.0%.
A reporter from Zhongxin Finance recently noticed in a supermarket in Xicheng District, Beijing that the price of front and rear tips was 21.8 yuan per kilogram, an increase of two yuan per kilogram compared to the previous period.
Meng Weixiao believes that in November, the industry will usher in the first climax of the second fattening sell-off, and the spot price of live pigs may be significantly corrected.
After December, the consumption demand for traditional pork such as cured meat and sausage has become increasingly strong. Historical data from the Ministry of Agriculture and Rural Affairs shows that the operating rate of slaughtering enterprises will increase significantly in December, and pig prices are expected to start rising again.
"As the peak of pickled wax begins, the price of live pigs may usher in strong support." Wang Qi, an analyst at China Post Securities, said that the three quarterly reports of listed live pig breeding companies have been released one after another, and major companies have exceeded expectations.
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