Under the agitation, some people added positions and entered the site, while others chose to evacuate.
On December 24, the leading pork stock Muyuan Foods Co.Ltd(002714) continued to rebound, closing up 4.27%, and the total market value climbed to 275.1 billion yuan. Since the 22nd, Muyuan Foods Co.Ltd(002714) has risen sharply for three consecutive days, with a cumulative increase of nearly 13%.
After hours data show that Muyuan Foods Co.Ltd(002714) today saw a 1 billion yuan discount block transaction, 13.7% lower than the closing price, and the sellers were Citic Securities Company Limited(600030) Shenzhen Binhai Avenue Securities Business Department.
However, while Citic Securities Company Limited(600030) Shenzhen Binhai Avenue Securities Business Department made a large reduction, the institution increased its position Muyuan Foods Co.Ltd(002714) against the trend. The total purchase amount of the two institutions exceeded 700 million yuan, indicating that the institution is optimistic about Muyuan Foods Co.Ltd(002714) .
Since the second half of this year, the market has been questioning the financial problems of Muyuan Foods Co.Ltd(002714) . After the commercial ticket incident, the market began to worry about the cash flow problems of Muyuan Foods Co.Ltd(002714) . In the face of doubts from the market, Muyuan Foods Co.Ltd(002714) chairman Qin Yinglin said that it is normal to have doubts and has taken a variety of countermeasures.
Muyuan Foods Co.Ltd(002714) surprise 1 billion yuan discount block transaction
The peak consumption season of the Spring Festival is coming, and the market’s pessimism towards pork stocks has eased. Recently, pork stocks listed on A-Shares have rebounded one after another, Wens Foodstuff Group Co.Ltd(300498) , Beijing Dabeinong Technology Group Co.Ltd(002385) , Muyuan Foods Co.Ltd(002714) , New Hope Liuhe Co.Ltd(000876) and so on.
Among them, as a leading enterprise in pork stocks, Muyuan Foods Co.Ltd(002714) has risen sharply since the 22nd, rising another 4.27% today. The share price closed at 52.28 yuan / share, with a total market value of 275.1 billion yuan.
However, the after hours block trading data showed that there were three discount block transactions on Muyuan Foods Co.Ltd(002714) 24, with a total of 22.17 million shares traded, involving capital of 1 billion yuan, and the transaction price was 45.13 yuan / share, 13.7% lower than today’s closing price. The block transaction amount accounted for 27.4% of the transaction amount on that day. The sellers were Citic Securities Company Limited(600030) Shenzhen Binhai Avenue Securities Business Department, or reduced their holdings and cashed out for the same shareholder.
It is worth noting that the buyers of block transactions are mainly institutions. The two institutions buy 700 million yuan and China Securities Co.Ltd(601066) Beijing Dongcheng Branch buys 300 million yuan. In the face of such a large number of discount transactions, the institution buys with a large amount of money, which shows that the institution is more optimistic about Muyuan Foods Co.Ltd(002714) .
The reporter further combed and found that since November, Muyuan Foods Co.Ltd(002714) there have been seven block trading information in total. Most of the funds sold by the business department have been sold, but the institutions have chosen to take over the offer one after another. The recent block transaction with large amount occurred on December 13, Huatai Securities Co.Ltd(601688) the securities business department of Beijing West Third Ring International Financial Center sold 9.8 million shares Muyuan Foods Co.Ltd(002714) at that time, involving a capital of 491 million yuan. The transaction price was zero discount from the closing price of the day, and the institution received it in full.
the company responded to investor questions
Recently, “Zhumao” Muyuan Foods Co.Ltd(002714) has been at the forefront of public opinion for many times. First, 32 subsidiaries of Zhumao have overdue payments, and then suffered a downgrade of rating outlook, which has been rumored to be “Thunderbolt” for many times.
On December 22, Qin Yinglin, chairman of Muyuan Foods Co.Ltd(002714) said that it was normal to question whether it was a financial problem or a cash flow problem concerned by the market. In the face of factors such as the industry at the bottom of the cycle, it is also a reality that the company’s cash flow is relatively tight, but the financial support of major shareholders, fixed increase, suspension of project construction and other means are the necessary countermeasures retained by the enterprise in the process of rapid running.
On December 23, Muyuan Foods Co.Ltd(002714) further responded to the recent doubts of the market when accepting the survey of institutional investors. For the query of financial problems, the company said that the company’s financial data were logical, and the recently hired third-party audit institution also conducted special verification on relevant matters, and the conclusion was that there was no abnormality.
Muyuan Foods Co.Ltd(002714) said that the company has developed rapidly in recent years. At the same time, due to the influence of external environment and other factors, the tense cash flow at a certain stage is normal. While doing business in a down-to-earth manner, the company also relies on industry support policies to enable the company to develop rapidly and with high quality.
In the pig breeding industry, pigs and raw grains belong to bulk Shenzhen Agricultural Products Group Co.Ltd(000061) with strong liquidity. Muyuan Foods Co.Ltd(002714) believes that at the trough of each pig cycle, the company’s cash flow will be slightly tight, because the funds are basically used for its own development. At present, the company has a large scale and needs to be more cautious in capital planning and reserve well. At present, the company has made corresponding adjustments in engineering construction, and the construction progress has slowed down.
Muyuan Foods Co.Ltd(002714) said that the company will continue to focus on its main business, continue to reduce costs and increase efficiency, truly create value, give back to shareholders and serve the society. The company will continue to adopt an open attitude, accept more new things, constantly explore and improve the pig business.
For the question of liquidity, the company said that after the commercial ticket incident, the company took a variety of measures to quickly solve the problem, standardize business operations and improve personnel ability. At present, the company’s business with major cooperative banks is progressing smoothly, and there is no loan withdrawal and loan interruption.
At the same time, the company’s fixed increase work is also advancing. In October this year, the company issued a plan for non-public offering of shares and issued no more than 6 billion yuan of additional shares to the company’s controlling shareholder Muyuan Industrial Group Co., Ltd.
Recently, the general meeting of shareholders considered the adjustment of the loan amount applied by the company to the controlling shareholder muyuan industry to no more than 5 billion yuan. The company believes that after the relevant matters are considered and approved, it will also provide strong support for the next development of the company.
The company said that according to the existing production, operation and capital plan, the current capital reserve of the company is sufficient to resist the possible trough of the pig cycle, and the current production, operation and capital liquidity of the company are normal.
pig price is expected to stabilize gradually
Driven by peak season consumption, pork prices rebounded in the fourth quarter. However, due to the continuous high pig supply, pork prices fluctuated again near the end of the year.
The peak consumption season of the Spring Festival is coming. According to the practice of previous years, pork supply and demand are relatively strong at the end of the year and the beginning of the year. Many institutions expect that pork prices will rise or fall sharply at the end of the year.
It is worth noting that recently, the Tariff Commission of the State Council announced that the import tax rate of pork will be restored from 8% to 12% from January 1, 2022. With the increase of China’s pig supply, the import demand and actual import will continue to decrease, which is conducive to the rebound of pork prices.
China International Capital Corporation Limited(601995) the research report points out that from the perspective of cycle, the current fertile sows have peaked and depopulated, and the pig price is on the left side of the bottom inflection point. Farmers’ cash flow tightened and continued to promote the de production capacity. Pig prices are expected to bottom out and reverse as early as the second quarter of 2022. From the perspective of growth, after entering the upward stage of the cycle, the improvement of enterprise cash flow will promote the rapid growth of sales. At the same time, the current large-scale breeding enterprises have both expansion capacity and space, and have good medium and long-term growth. On the whole, the opportunities of pig breeding industry in terms of cycle and growth will be significantly improved in 2022. It is suggested to focus on this layout.
Dongxing Securities Corporation Limited(601198) the research report believes that in the downward stage of the current cycle, cash advantage and cost advantage are the most core elements to ensure the stable operation and safe passage of the current cycle. Enterprises have stopped outsourcing piglet fattening to reduce cash flow loss, gradually improve their production performance and reduce breeding costs to reduce losses. The rebound of pig price may affect the speed of capacity removal at this stage.
Dongxing Securities Corporation Limited(601198) believes that this round of pig price rebound may cause the month on month decline of fertile sows in November. However, at present, the pig price of 16 + yuan / kg has not reached above the cost line of many breeding enterprises, and the pig price may reach the bottom again after the peak demand season. The pressure of breeding enterprises to eliminate inefficient sow production capacity, increase efficiency and reduce cost is still urgent.
(Securities Times)
