The Average Profit Of Listed Pig Enterprises Increased Nearly 10 Times, And The Price Of "Second Senior Brother" Rose Again, And The Performance Continued To Set A Record In The Second Half Of The Year?

Longda meat food, a non mainstream head listed pig enterprise, but the company's interim report disclosed on the evening of August 10 showed that the net profit in the first half of the year also increased by 218.24%.

As of August 11, most of the 25 listed companies included in wind pig industry have issued performance forecasts or formal semi annual reports, and their profit performance is amazing.

Taking 17 companies that have released performance forecasts as an example, except Zhenghong technology and Yisheng shares, the performance of the other 15 listed companies which are mainly engaged in and have certain pig business achieved growth in the first half of the year, with an average growth rate of 983.17%.

The above achievements also set a semi annual profit record of pig breeding industry. For example, the reported profit of muyuan shares reached 10.78 billion yuan, significantly higher than that of 6.27 billion yuan during the pig boom in the second half of 2019. This makes the company's profit scale, at present, can rank the second among the listed companies that have disclosed the semi annual report, second only to Guizhou Maotai.

The reason lies in the firm price of products. Although the domestic pig fell in stages in the second quarter, and the related enterprises' selling prices were lower, the bottom rebounded at the end of May, and the current average price of pig sales continued to maintain a high level, which became the key to the profit explosion of breeding enterprises in the first half of the year.

Half profit is net income

If the long-term tracking of the aquaculture industry, the above performance is expected to increase.

First of all, it can be determined that the relevant enterprises have a low profit base. The cost of swine fever in the first half of the year is below the line of 15 yuan / kg in May, and the price of pigs will gradually rise below the line of 15 yuan / kg in May.

In the financial report, most of the pig breeding enterprises in the first half of 2019 are in a state of loss, even if Qianru muyuan shares are no exception.

Secondly, although the price of live pigs dropped in the first half of this year, the overall average selling price was higher than that in the second half of 2019. In July and August of 2019, the price of muyuan shares was 16.01 yuan and 20.27 yuan per kilogram, but the lowest price in the first half of this year did not fall below 26.2 yuan.

Under the above background, the profitability of pig breeding enterprises has been further strengthened.

Among them, muyuan shares reported a profit growth of 7026%, xinwufeng and Dabei nongzhongbao increased by 2561.86% and 2279.39%, and the growth rate of 200% was already at a relatively low level in the industry.

Further tracking to the financial report, we can also see the specific increase in corporate profits.

In the first half of the year, the gross profit rate of muyuan's pig products was 63.27%, which was 59.93 percentage points higher than that of the same period in 2019, and the gross profit rate of Tang renshensheng pig was 63.36%, 50.14 percentage points higher than that of the same period last year.

More than half of the total profit rate of the stock market is higher than that of the original business.

Data show that the company's revenue in the first half of the year was 21.033 billion yuan, with a net profit of 10.784 billion yuan, accounting for 51.27% of the company's revenue.

In contrast, other breeding enterprises, including Tang Renshen, are far less flexible than muyuan shares due to their involvement in other businesses.

According to the data of China Daily News, the total revenue of Tang Renshen was 7.896 billion yuan, of which the income from feed business accounted for more than 85% and that of pig business accounted for only 10%.

However, driven by the super profit trend of the industry, the pig business is still enough to promote the overall profit level of listed companies, and the pig income of 825 million yuan can bring about 523 million yuan of gross profit.

It should be noted that the gross profit of the feed business of Tang Renshen, whose revenue reached 6.73 billion yuan in the first half of the year, was only 529 million yuan.

In the next half of the year, the gross pig sales rate will be higher than that in the second half of 2019.

Thanks to this, the profit scale of the whole industry in the first half of this year will also reach the best level in history.

Record setting in the second half of the year?

For the second half of the year, all institutions have strong confidence.

According to the wind consistency forecast results, as of August 11, the seller's organization expected the annual profit of muyuan shares to be 33.52 billion yuan, and the profit expectations of Wen's shares, Zhengbang technology and new hope were 28.19 billion yuan, 9.39 billion yuan and 14.27 billion yuan respectively.

Compared with the empirical data of the first half of the year, it can be seen that after completing the above expected value, the profits of the head pig enterprises in the second half of the year will increase by about 2 times.

Taking new hope as an example, the median expected profit in the first half of the year is 3.175 billion yuan. If the above expected value is followed, the profit scale in the second half of the year will need to reach 11.095 billion yuan. The situation of other enterprises is similar.

So, where is the growth momentum in the second half of the year?

First of all, the price of the product goes up. First of all, the price of live pigs has been rising since the end of May, and the average price of related enterprises is obviously higher than that of the second quarter.

Changes in sales data of some enterprises are enough to illustrate this trend. According to statistics, the average selling price of pigs of Zhengbang technology in the first quarter was 35.25 yuan / kg, which dropped to 32.27 yuan / kg in the second quarter, and rose again to 36.62 yuan / kg in July this year. The average selling price in a single month was only slightly lower than the high point of 37.02 yuan / kg in February this year.

It should be pointed out that many of the listed pig breeding enterprises also have feed business. Due to the impact of the rising prices of corn and other raw materials, the industry's prosperity began to improve in the second half of the year.

Since August, nearly 20 enterprises, such as new hope and Zhengbang technology, have issued feed price increase notices, with an average increase of 75 yuan to 100 yuan per ton. Therefore, the profit of the second half of the year will be greatly increased, which will have a considerable effect on the profit of the pig business.

Secondly, there is the potential for the increase of pig sales in the second half of the year, which is almost equivalent to a "signboard". A number of listed pig enterprises have made their voices through different channels such as regular reports and investor research, giving the annual pig marketing target and clearly indicating that the sales volume in the second half of the year will be significantly increased.

It is true that the actual sales volume trend of the head pig enterprises.

In July this year, the pig sales of muyuan shares increased by 19.24% month on month, Zhengbang technology increased by 31.37%, and new hope was slightly lower, with a month on month increase of 9.3%

However, considering the annual planned sales volume, there is still a lot of room for these enterprises to improve their sales volume in the remaining five months, which needs to be verified step by step by tracking the following monthly sales data.

Assuming that pig prices continue to remain high in the second half of the year, the number of pigs sold by relevant enterprises will increase substantially in the second half of the year, and the profit expectation given by the seller's organization mentioned above is not impossible.

Through performance prediction, we can lock in the fundamental variables of the stock price fluctuation of the above-mentioned companies. As for the secondary market variables such as plate rotation and capital preference, we can only look at them while walking. (Editor: Wu Yanling)