The pig is flying! 200 billion pig farmers make profits, 10 billion net profit hits best after listing
The strong pork market is coming again in 2020, and the concept stock of the Second Brother has quietly risen recently. Yesterday, pork stocks were active and strong again, and the pig industry index rose 3.08%. Among them, Wen's shares soared 6.75%, Muyuan , Xinwufeng and Shuanghui Development followed suit, rising nearly 4%.
The profit of Wen's shares in 2019 has turned over. From December 27, 2019 to January 7, this year, the share price of Wen's shares rose from 32.4 yuan to 38.25 yuan. In just seven trading days, the range rose by more than 18%.
The surge in Wen's shares is inseparable from its performance expectations. On the evening of January 6, Wen's shares disclosed the 2019 annual performance forecast. The company expects net profit for 2019 to be 13.85 billion yuan to 14.3 billion yuan, an increase of 249.97% to 261.35% over the same period last year.
The annual net profit of Wen ’s shares last exceeded 10 billion yuan in 2016. At that time, Wen ’s net profit reached 11.79 billion yuan, an increase of 89.99% year-on-year. Therefore, 2019 may be the year with the best performance since its listing.
It is reported that during the reporting period, Wen's shares sold 18.5166 million hogs, a year-on-year decrease of 16.95%, but the sales price increased by 46.57% year-on-year; 925 million broilers were sold, an increase of 23.58% year-on-year, and the average sales price increased by 9.93% year-on-year.
Regarding the reason for the substantial increase in net profit, Wen's shares stated that during the reporting period, the market for meat and poultry was good, and the company actively developed poultry business and implemented measures such as increasing investment in seedlings to achieve incremental production and increase efficiency. The company sold 925 million broilers (including chickens, fresh products and cooked foods), an increase of 23.58% year-on-year, and the average sales price rose 9.93% year-on-year. The company's chicken breeding income and profit rose year-on-year.
Wen's shares also said that the current domestic swine fever epidemic situation in China is still severe. The company will continue to strengthen the epidemic prevention and control, pay close attention to biological safety, and fully promote the stable production and supply of pigs.
Second brother concept stocks continue to take off?
Due to factors such as African swine fever, domestic fertile sows have fallen sharply, and the number of live pigs on the market has decreased sharply, resulting in tight supply and demand in the market. Since 2019, the price of live pigs has risen all the way, and the total market value of pork concept stocks has risen by more than 340 billion yuan. As the state continues to regulate the price of meat, the increase in imported meat, and the release of stocked meat, the loose price has caused pork stocks to generally callback since November. However, from December 2019 to March 2020, the Spring Festival factors and low base period factors may cause pork prices to be in a high-priced platform stage, which has caused pork stocks to recently show a "turning red" scene.
Securities Times · Databao statistics show that as of January 7, since 2019, the average increase in pork stocks has reached 87.42%, and there have been 7 stocks with an increase of more than 100%. Among them, the largest increase is Yisheng shares , which has reached 283.54%. .
Makihara's stock increased by 226.53%, ranking second, with a total market value of 202.8 billion yuan. The market value of pork stocks is second only to Wen's . Makihara disclosed on January 6 that the company sold 827,200 pigs in December, with a sales income of 2.816 billion yuan; the average sales price of the company's commercial pigs was 30.52 yuan / kg, an increase of 0.73% over November 2019; the overall price of commercial pigs showed an upward trend . For the whole year of 2019, the company sold a total of 10.23533 pigs, including 8.691 million commercial pigs, 15.471 million piglets, and 27,100 breeding pigs. The sales revenue was 19.661 billion yuan, a year-on-year increase of 48%.
From the perspective of total market value, there are three pork stocks with more than 100 billion, namely Wen's shares , Makihara shares and Shuanghui Development .
Will the surge in pork stocks in 2019 continue in 2020? Zhongtai Securities believes that the rising hog price boom is still on the way, and that the new high prices in the fourth quarter of 2019 to 2020 are relatively certain. The hog breeding stock market has entered a period from "new highs" to "realizing profits."