The performance impact of "pig cycle" on breeding listed companies is being presented in an intuitive way. According to the data, as of February 6, a total of 64 listed companies in agriculture, forestry, animal husbandry and fishery in Shanghai and Shenzhen issued performance forecasts. From the ranking of the lower limit of predicted net profit, it can be seen that the top four companies with the highest amount of advance loss are all pig breeding enterprises.
"The overall supply of pigs is still sufficient. It is expected that the pig price will remain at a low level in the first half of 2022, and the losses of relevant companies will continue." Zhuo Chuang information analyst Li Sujie said in an interview with Securities Daily.
According to the data, the performance of many listed companies mainly engaged in pig breeding business, including Jiangxi Zhengbang Technology Co.Ltd(002157) , Wens Foodstuff Group Co.Ltd(300498) , New Hope Liuhe Co.Ltd(000876) , Tech-Bank Food Co.Ltd(002124) , was affected by the fluctuation of pig price in 2021.
"During the reporting period, the sharp decline in pig prices, the continuous rise in feed prices, the outsourcing of some pig seedlings for fattening and the continuous promotion of pig breeding optimization all pushed up the enterprise's pig raising costs, resulting in a sharp year-on-year decline in the company's profit of pig breeding business in 2021 and deep losses." A number of listed companies mainly engaged in pig breeding business said in the announcement that the company will continue to promote the work of consolidating the foundation of pig breeding business, improve the biosafety prevention and control system, continuously improve the quality of sows on hand, improve the listing rate of pigs and reduce the cost of pig breeding.
It is worth noting that the performance pressure of these listed companies will be difficult to ease temporarily in the first half of 2022. On the supply side, pig breeding practitioners are unanimously bearish on the future market, and have adopted the strategy of reducing weight and listing pigs in advance. There are abundant pig sources below 120 kg in the market, and slaughtering enterprises reduce the acquisition of large pig sources, and some slaughtering enterprises tend to acquire small pig sources, resulting in the decline of pig trading market.
In an interview with Securities Daily, Li Sujie said that at present, the weight of pigs has decreased and the number of pigs has increased, but the overall supply is still in a sufficient state.
Some listed companies said in the announcement that a series of measures were taken in the second half of last year for the long-term development of the pig industry. For example, measures such as accelerating the elimination and renewal of inefficient sows and weak pigs have increased the current loss to a certain extent; In terms of the integration of breeding and ventilation, it has not accelerated the transformation of pig farms in the current period, but it has not yet produced the advantages of precision breeding and deep deodorization.
In the short term, it is more difficult for pig enterprises to turn around their losses in the first half of this year. Zhuo Chuang information believes that at present, there are sufficient pig sources in the market, and the phenomenon of weight loss at the supply side is released in advance reflects the mentality of practitioners who are bearish about the future market. From the demand side, although the effect of the Spring Festival holiday has a significant boost to the pig price, under the abundant pig supply, the market digestion capacity is limited, resulting in the weak rise of the pig price as a whole.
"As of January 29, the national self breeding pigs monitored by Zhuo Chuang information have lost 135.33 yuan per head. It is expected that the pig price will remain at a low level in the first half of 2022, and the losses of relevant enterprises may continue." Li Sujie told the reporter of Securities Daily.
