Core view
[market performance] last week, the CSI 300 index closed at 4651.24 points, up or down 1.08% in one week and – 5.85% year to date; The Shanghai Composite Index closed at 3490.76, up or down 0.80% in one week and – 4.09% year to date. Among the 31 primary industries in Shenwan, the top three rose last week were power equipment (5.53%), non-ferrous metals (5.31%), medicine and Biology (4.85%); The top three declines were non bank finance (- 3.93%), public utilities (- 1.21%) and banks (- 1.10%). The agriculture, forestry, animal husbandry and fishery sector rose or fell – 1.02% last week, ranking 27th. Since the beginning of the year, the agriculture, forestry, animal husbandry and fishery sector has increased or decreased by – 0.61%, ranking 10th.
[key information]
Recently, the State Food Safety Supervision and Control Commission issued the notice on Soliciting Opinions on the quality and safety of grain procurement and storage. First, improve the quality and safety inspection system for grain purchase, storage, delivery and other links. Second, improve the grain acceptance and inspection system. Third, improve the quality and safety management system of grain transportation. Fourth, improve the traceability system of grain quality and safety. Fifth, strengthen information construction. (source: National Development and Reform Commission)
[Key announcement]
[ Winall Hi-Tech Seed Co.Ltd(300087) ] released the performance express of 2021, and the company achieved an operating revenue of about 2.521 billion yuan, an increase of 57.38% year-on-year; The net profit attributable to the shareholders of the listed company was about 169 million yuan, a year-on-year increase of 26.93%; The basic earnings per share was 0.39 yuan, with a year-on-year increase of 21.88%. During the reporting period, the company’s seed business continued to grow, mainly promoting the market performance of hybrid rice, hybrid corn and other varieties, while the scale of order agricultural business increased.
[opinion]
The tight state of supply and demand continued, and the shock of pig price stabilized. According to pig Yitong data, on February 18, the price of live pigs was 12.45 yuan / kg, up 1.47% on a weekly basis. On the demand side, residents started school after the Lantern Festival, and the demand for low-cost frozen products increased, but the demand for fresh pig meat was light. On the supply side, there are frequent news of collection and storage in various provinces, and retail investors are reluctant to sell. However, the transaction performance on the consumer side is poor, and the overall price rise support power is insufficient. We believe that the tight state of supply and demand in the market continues, and the short-term pig price fluctuates steadily.
The policy dividend is released, and the leading seed enterprises may welcome the period of strategic opportunities. In order to speed up the innovation of seed industry, the state continued to carry out joint research on the breeding of four major grain crops of rice, wheat, corn and soybean and 11 characteristic crops. In order to support excellence and strengthen the main body of innovation, the Ministry of agriculture and rural areas selected 70 advantageous enterprises from 7000 seed enterprises for key support. Hainan explores the establishment of the country’s first “trial association center” to play an important role in establishing a highland for the protection of intellectual property rights in the seed industry. Benefiting from the policy dividend and the tightening trend of intellectual property protection, leading seed enterprises may welcome the period of strategic opportunities.
Investment advice
Pig breeding: the slaughter volume of major pig enterprises has increased significantly, but the pig price is still in a downward trend. At the same time, the cost of feed raw materials has increased, and pig enterprises may face the situation of increasing income without increasing income. It is suggested to pay attention to breeding enterprises with significant cost control advantages and stable operation.
Seed industry: in favor of the policy dividend and the tightening trend of intellectual property protection, the leading seed enterprises may welcome the period of strategic opportunities. It is suggested to pay attention to the leading seed enterprises with core breeding ability and high-quality varieties.
Risk tips
Macroeconomic fluctuations; Non plague situation; Extreme weather effects, etc.
