Core view
[market performance] last week, the CSI 300 index closed at 457342 points, up or down – 1.67% in one week and – 7.43% year to date; The Shanghai Composite Index closed at 345141, up or down – 1.13% in one week and – 5.18% year to date. Among the 31 primary industries in Shenwan, the top three rose last week were power equipment (+ 4.25%), national defense and military industry (+ 3.05%) and electronics (+ 2.45%); The top three declines were architectural decoration (- 6.53%), building materials (- 6.50%) and media (- 4.26%). The agriculture, forestry, animal husbandry and fishery sector rose or fell – 3.27% last week, ranking 24th. Since the beginning of the year, the agriculture, forestry, animal husbandry and fishery sector has increased or decreased by – 3.86%, ranking 13th.
[key information]
[the CPC Central Committee and the State Council: do a good job in the work of “agriculture, rural areas and farmers” and continue to comprehensively promote rural revitalization] on February 22, the CPC Central Committee and the State Council issued the opinions on comprehensively promoting the key work of rural revitalization, which is the 19th document issued by the Central Committee with the main theme of “agriculture, rural areas and farmers” since the new century. The document proposes that to promote the steady and healthy development of economy and society, we must focus on the major strategic needs of the country, stabilize the basic situation of agriculture, do a good job in the work of “agriculture, rural areas and farmers”, continue to comprehensively promote the revitalization of rural areas, and ensure the stable production and increase of agricultural output, the steady increase of farmers’ income and the stability and tranquility of rural areas. (source: Official Website of the State Council)
[Key announcement]
[ Wens Foodstuff Group Co.Ltd(300498) ] 2021 annual performance express: during the reporting period, the company realized an operating revenue of 64962586700 yuan, a decrease of 13.31% over the same period last year; The net profit attributable to the shareholders of the listed company was -13337251800 yuan, a decrease of 279.61% over the same period of the previous year; The basic earnings per share was -2.0998 yuan, a decrease of 278.68% over the same period last year.
[opinion]
Supply and demand play a long and short game, feed prices rise, and production capacity is accelerated. According to pig Yitong data, on February 25, the price of live pigs was 12.48 yuan / kg, up 0.2% on a weekly basis. The recent slight rise in pig prices is mainly affected by the policy side, with frequent news of purchase and storage in many places. Recently, the price of soybean meal has continued to rise, driving the synchronous rise of the price of pig feed raw materials. The losses of breeding enterprises may intensify again, so it is imperative to reduce production capacity. The short-term market supply and demand game is deadlocked, and the pig price continues to fluctuate at the bottom.
Promote the core technology of seed industry and the application of transgenic technology is expected to be accelerated. The No. 1 central document issued the plan to implement the seed industry revitalization plan, focusing on accelerating the implementation of core technology and strengthening the protection of intellectual property rights in seed industry, and launching major projects in agricultural biological breeding. We believe that the seed industry is currently facing cyclical opportunities of increasing demand and improving the market environment, which are superimposed with the growth opportunities brought by the core technology represented by the base transfer.
Investment advice
Pig breeding: Recently, the price of soybean meal has continued to rise, driving the synchronous rise of the price of pig feed raw materials. The price of pigs has continued to fluctuate at the bottom, and the losses of breeding enterprises may increase again. Therefore, it is imperative to reduce production capacity. It is suggested to pay attention to breeding enterprises with significant cost control advantages and stable operation.
Seed industry: with the increase of the penetration rate and price of high-quality varieties, the industry space is expected to expand, and the market is expected to concentrate on the leading enterprises with prominent R & D competitive advantages. It is suggested to pay attention to the leading seed industry with obvious advantages in the field of transgenic.
Risk tips
Macroeconomic fluctuations; Non plague situation; Extreme weather effects, etc.
