\u3000\u3 China Vanke Co.Ltd(000002) 458 Shandong Yisheng Livestock & Poultry Breeding Co.Ltd(002458) )
Event:
Shandong Yisheng Livestock & Poultry Breeding Co.Ltd(002458) released the annual performance express of 2021: the total operating revenue of the company was 2.090 billion yuan, an increase of 19.35% year-on-year, and the net profit was 28 million yuan, a decrease of 69.07% year-on-year.
Key investment points:
In 2021, the sales volume of chicken seedlings was 470 million, a year-on-year decrease of 3.4%. In 2021, the company’s chicken seedling income was 1.88 billion yuan, a year-on-year increase of 30.8%. The company sells chicken seedlings on behalf of commodity and parents. Affected by the low profit of broiler breeding on behalf of commodity in 2021, the sales of chicken seedlings on behalf of commodity decreased. Due to the rise in the price of feed raw materials, the sales unit price and cost of commercial chicken seedlings increased year-on-year. In 2021, the profitability of parent generation chicken seedlings improved year-on-year.
In 2021, the company sold 2024 breeding pigs, a year-on-year decrease of 41.4%. The income from pig business in 2021 was 42.468 million yuan, a year-on-year decrease of 41.8%. The company’s income and sales of breeding pigs decreased mainly due to the poor profitability of the pig industry in 2021, which affected the demand and unit price of breeding pigs.
The independent cultivation of “prebiotic 909” chicken seedlings was recognized, and 1300 Danish purebred pigs were introduced. In 2021, the “Yisheng 909” small white feather broiler matching line independently cultivated by the company was recognized as a national new breed of livestock and poultry, becoming the first small white feather broiler variety in Shandong Province to pass the national certification, and establishing a Qilu model for “fighting a turnaround in the seed industry”. In January 2022, the sales volume of “prebiotic 909” was 5.33 million. Prebiotic 909 has high meat production rate, good meat products, strong disease resistance and high survival rate. It is suitable for flat breeding and cage breeding. It can not only kill white striped chickens, but also suitable for slaughter and segmentation. It is especially suitable to replace Sanhuang chicken for slaughter and processing after closing the live poultry market. In terms of breeding and consumption channels, it is different from large white feather broilers. Compared with 817 meat miscellaneous chicken, it can reach the same weight and be released two to three days in advance, with significant economic benefits. In the 14th five year plan, the annual sales of white feather broiler commercial chicken seedlings and prebiotic 909 chicken seedlings totaled 1 billion. In 2021, the company successfully introduced 1300 purebred pigs from Denmark, providing support for the company to expand and strengthen the breeding pig business.
Profit forecast and investment rating we predict that the net profit attributable to the parent company from 2022 to 2024 will be RMB 0.37/6.29/915 million respectively, and the corresponding PE will be 253.26/15.08/10.36 times respectively, maintaining the “overweight” rating
The risk suggests that the price of feed raw materials remains rising; The demand for chicken seedlings continued to be low; The recurrence of non plague affects the slaughter of breeding pigs; The demand for breeding pigs remained low; The risk that the company’s performance does not meet expectations, etc.
