This weekend, rumors about the pay cut of Muyuan Foods Co.Ltd(002714) a leading pig breeding enterprise attracted attention on the Internet.
On February 19, Muyuan Foods Co.Ltd(002714) publicly responded to the rumor of salary reduction, saying that the online rumor that “the company generally reduces salary by 10% – 40%” was untrue information. The company’s per capita salary has remained stable recently, and there is no general salary reduction. The company implements the appraisal scheme linked to results. The salary change of an employee in a certain month is affected by the individual appraisal results, the performance of his team and other factors.
Recently, the equity incentive plan disclosed by Muyuan Foods Co.Ltd(002714) has also attracted market attention. If the assessment target is completed, 6093 employees will receive half price equity incentive. At present, the per capita floating profit is 390000 yuan.
Muyuan Foods Co.Ltd(002714) : the online message “the company generally reduces salary by 10% – 40%” is false
Recently, some netizens posted that, “while equity incentive, muyuan group has reduced its salary. It is understood that except for breeding technicians, the salary reduction of muyuan has decreased in logistics and cadres to varying degrees, with a maximum decrease of 40%.”
On February 19, Muyuan Foods Co.Ltd(002714) publicly responded to the rumors of salary reduction on the interactive platform, saying that there was no general salary reduction among the company’s employees.
Muyuan Foods Co.Ltd(002714) said that the online transmission of “the company generally reduces salary by 10% – 40%” was untrue information. The company’s per capita salary has remained stable recently, and there is no general salary reduction. The company implements the appraisal scheme linked to results. The salary change of an employee in a certain month is affected by the individual appraisal results, the performance of his team and other factors.
However, in response to the above response, some netizens commented that at the moment of widespread losses in the pig breeding industry, salary reduction is a normal financial operation and can play a role in increasing revenue and reducing expenditure.
more than 20 institutions participated in Muyuan Foods Co.Ltd(002714) teleconference
It is worth noting that while replying to online rumors, Muyuan Foods Co.Ltd(002714) also publicly disclosed a record of investor relations activities.
According to the record table, Muyuan Foods Co.Ltd(002714) held a teleconference on February 17, attended by more than 20 institutions, including well-known institutions Boshi fund, Dongfang harbor, Gaoyi assets, Huaxia Fund, Nanfang fund, SDIC UBS fund, Qianhai open source fund, Xingquan fund, Tianhong fund, etc.
In the Q & a session, Muyuan Foods Co.Ltd(002714) said that the company’s current cost is about 15 yuan / kg, and the company’s goal of cost reduction in 2022 is to achieve a full cost of 13 yuan / kg in stages.
For the trend of pig price in the later stage, Muyuan Foods Co.Ltd(002714) said that it is in the off-season after the Spring Festival, and the overall pig price is low. It is expected that the pig price will improve slightly in the second half of the year. Since last year, the company has taken relevant measures to cope with the decline in pig prices, mainly adjusting the pace of project construction. At the same time, continuously optimize the internal management level to improve the breeding performance of the company.
Muyuan Foods Co.Ltd(002714) : the monthly operating expenditure is 6-6.5 billion yuan
In the teleconference, Muyuan Foods Co.Ltd(002714) said that by the end of 2021, the company had built a breeding capacity of more than 70 million pigs, and the number of sows capable of breeding was 2.831 million. It is expected that the number of sows capable of breeding in 2022 will increase slightly compared with that in 2021.
According to the current business scale of the company, the monthly operating expenditure is 6-6.5 billion yuan, mainly including procurement expenditure, salary expenditure and other expenses. At present, the company has no new investment in fixed assets, and only a few projects are under construction. If the pig price and business environment improve significantly in the future, the company will consider whether to expand production.
As for the question about the profits and future planning of the slaughtering business, Muyuan Foods Co.Ltd(002714) responded that the slaughtering sector of the company did not make a profit in 2021, mainly due to the high preliminary costs of the construction and operation of multiple slaughterhouses in 2021 and the losses caused by the decline of the market. At present, the slaughtered products are mainly white striped meat and split meat, of which white striped meat accounts for a relatively high proportion.
The company carries out slaughtering layout according to the idea of supporting the construction of slaughterhouses in areas with intensive breeding capacity. At present, the slaughtered pigs are self bred pigs in the pig breeding sector of the company. At present, the company has no specific profit target in the slaughtering business segment. The company will support the company’s slaughtering business to achieve profitability in 2022 by improving capacity utilization, expanding sales channels, optimizing sales structure, reducing production costs and other measures.
6093 employees received half price equity incentive, with a per capita floating profit of 390000
Recently, the disclosure of equity incentive plan has also attracted Muyuan Foods Co.Ltd(002714) market attention.
The company plans to grant 81.08 million restricted shares to 6093 incentive objects, accounting for 1.54% of the total share capital of the company. The grant price is 30.52 yuan / share, about 50% of the latest share price of the company.
In other words, if the assessment target is completed, more than 6000 employees can obtain the company’s shares at the price of 30.52 yuan / share. As of the closing on February 18, Muyuan Foods Co.Ltd(002714) share price was 59.99 yuan / share. If calculated at this price, more than 6000 incentive objects have a total floating profit of 2.389 billion yuan and a per capita floating profit of 390000 yuan.
Of course, if employees want to obtain the above shares, the premise is to complete the assessment objectives. At the company level, the annual performance assessment objectives are: Based on the pig sales in 2021, the growth rate of pig sales in 2022 shall not be less than 25%; Based on the pig sales volume in 2021, the growth rate of pig sales volume in 2023 shall not be less than 40%.
According to the data, in 2021, Muyuan Foods Co.Ltd(002714) sold 40.263 million pigs, a year-on-year increase of 122%. Among them, there are 36.887 million commercial pigs, 3.095 million piglets and 281000 breeding pigs.
With regard to the progress of the above equity incentive plan, Muyuan Foods Co.Ltd(002714) on February 17, the company said that it was making steady progress in accordance with relevant business processes, and it is expected to complete the grant and registration of the first incentive part in the near future.
recently, pig breeding enterprises suffered serious losses last year
Since the beginning of 2021, pork prices have continued to decline. According to the data of China pig breeding network, on October 6 last year, the price of live pigs (external three yuan) fell to a low of 10.63 yuan / kg, down 71% from the high of 36.94 yuan / kg in early January 2021. Subsequently, pork prices hit the bottom and rebounded for nearly two months.
Since December 2021, pork prices have entered a new round of decline. As of February 19, 2022, the price of live pigs (foreign three yuan) was 12.69 yuan / kg, down 65.6% from the high point at the beginning of last year.
In 2021, listed pig enterprises generally suffered losses. Among them, Jiangxi Zhengbang Technology Co.Ltd(002157) suffered the worst. The company is expected to lose 18.2 billion yuan to 19.7 billion yuan. From 2004 to 2020, the total annual net profit of the company was only 9.924 billion yuan.
In addition, Wens Foodstuff Group Co.Ltd(300498) is expected to lose 13 billion yuan to 13.8 billion yuan, New Hope Liuhe Co.Ltd(000876) is expected to lose 8.6 billion yuan to 9.6 billion yuan, and Tech-Bank Food Co.Ltd(002124) is expected to lose 3.5 billion yuan to 4 billion yuan.
However, the leader Muyuan Foods Co.Ltd(002714) remains profitable. The company expects a net profit of 6.5 billion yuan to 8 billion yuan in 2021, a year-on-year decrease of 70.86% – 76.32%.
farmers lost 300 yuan
According to the data released by the Ministry of agriculture and rural areas on February 17, the number of pigs sold nationwide increased significantly month on month and year-on-year in January, and the price of pigs decreased continuously.
According to the financial report of China Central Television, the data show that the number of pigs sold nationwide in January increased by 9.4% month on month and 23.6% year-on-year. On the one hand, farmers are generally bearish on the future market, reducing their weight and actively listing. On the other hand, the national pig production capacity is in phased excess.
Wang Zuli, chief expert of pig industry monitoring and early warning of the Ministry of agriculture and rural areas, said in an interview that pig production capacity gradually recovered last year and the high price fell. Although it rebounded briefly in the middle, it has declined continuously since December last year. Even in the traditional peak sales season in January, the price continued to decline. In January, the national pig price fell for four weeks, with a year-on-year decrease of more than 50%. After the Spring Festival, the consumption off-season entered, and the pig price accelerated its decline.
Wang Zuli pointed out that according to the latest data, pigs are 12.5 yuan per kilogram, and the pig breeding cost line we monitored is about 15.4 yuan per kilogram. Obviously, the price has fallen below the cost line. Recently, every commercial pig sold by farmers in the farm will lose more than 300 yuan.
Research Institution: at present, it is a good time to layout the pig sector
After falling prices, the pig breeding industry has received two pieces of good news recently: first, the state will start the collection and storage of pork reserves as appropriate; Second, the State Council issued the “14th five year plan for promoting agricultural and rural modernization”, which proposed to improve the long-term mechanism for the stable and orderly development of the pig industry, promote standardized large-scale breeding, stabilize the pork production capacity at about 55 million tons, and prevent the ups and downs of production.
Some research institutions pointed out that since 2009, the central government has collected and stored about 18 times during the downward period of pork prices. To some extent, the purchase and storage has an emotional short-term boost to pork prices. In the week of storage, the average decline of pork was – 0.8%, the average increase in one week after storage was 0.8%, the average increase in two weeks after storage was 0.8%, and the average increase in four weeks after storage was 2.6%. However, in the medium and long term, pork prices still depend on the overall supply and demand pattern.
Many research institutions believe that the current is the best time point for the layout of the pig sector. Galaxy Securities said that at the end of January, the price of live pigs fell to 13.97 yuan / kg, significantly lower than the average breeding cost of the industry. The intensification of losses will further drive the industry to reduce production capacity, and the cumulative decline of fertile sows will gradually increase. At present, the pig price has bottomed out and the pace of capacity removal has been accelerated. At present, the investment risk of the sector is low and the safety margin is high. The market shows positive expectations. At present, it is the best time to allocate the pig breeding sector.
Guotai Junan Securities Co.Ltd(601211) also believes that the first quarter is the golden allocation period for pig breeding enterprises. The core reason is that short-term pigs are at a loss, the elimination of fertile sows will accelerate, and the stock price will form positive feedback in the process of acceleration.
Citic Securities Company Limited(600030) pointed out that at present, the overall pig supply is still in the stage of surplus. It is expected that there will still be downward pressure on pig prices in the future, and the second wave of de capacity has been gradually opened. The national development and Reform Commission announced that it would start the collection and storage of pork according to the situation, and it is expected that the pig price may stabilize at the bottom. At the level of listed companies, the worst performance of Chinese listed companies has passed, and breeding stocks are facing emotional and performance repair. It is recommended to continue to pay attention to the pig breeding sector.
