Pig prices were low in 2021, and Guangdong Haid Group Co.Limited(002311) still exploring pig breeding business was also affected.
On the afternoon of February 25, Guangdong Haid Group Co.Limited(002311) ( Guangdong Haid Group Co.Limited(002311) , SZ; previous closing price of 65.7 yuan) released the performance express of 2021. It is estimated that the operating revenue of the company in 2021 will be 86.740 billion yuan, a year-on-year increase of 43.79%; The net profit was 1.601 billion yuan, a year-on-year decrease of 36.54%; The basic earnings per share was 0.97 yuan, a year-on-year decrease of 39.38%.
The reporter of daily economic news found that Guangdong Haid Group Co.Limited(002311) analysis showed that there were two reasons for the fluctuation of net profit in 2021, one was the loss of poultry and pig breeding, and the other was the higher rise of staff costs and financial expenses. Of which, Guangdong Haid Group Co.Limited(002311) sold 2 million pigs last year, with a loss of 900 million to 1 billion yuan; More than 7000 new employees were added throughout the year, and employee compensation and other expenses increased by more than 40% year-on-year; At the same time, financial expenses increased by about 70%.
At the shareholders’ exchange meeting in May last year, Xue Hua, chairman of Guangdong Haid Group Co.Limited(002311) board of directors, said that in the future, the company’s feed business is the core, followed by seedlings and animal protection. The breeding business belongs to the “seed business”, which will be determined to do, but will not take risks.
net profit decreased for the first time in 7 years
Under the background of maintaining seven-year continuous net profit growth, in 2021, Guangdong Haid Group Co.Limited(002311) suffered from the drag of pig breeding business, and the operating profit, net profit attributable to parents and other indicators declined. Among them, the net profit deducted from non attributable to parents was 1.523 billion yuan, a decline of 38.09% compared with 2.46 billion yuan in 2020; The net profit attributable to the parent company was 1.601 billion yuan, down 36.54%; Both fell back to 2019 levels.
The pig breeding business had a great impact on last year’s Guangdong Haid Group Co.Limited(002311) net profit Guangdong Haid Group Co.Limited(002311) disclosed in the performance express that in 2021, the company sold about 2 million pigs, including about 1.3 million purchased piglets, accounting for more than 60% of the total. At the same time, due to the high price of purchased piglets at the beginning of the year, the marketing price of fat pigs in the second half of the year was low and the loss was large. The net profit loss of pig breeding operation in the whole year attributable to the parent company was between 900 million yuan and 1 billion yuan, which had a great impact on the overall operating performance of the company.
Guangdong Haid Group Co.Limited(002311) 2010 entered the pig breeding sector, but the development has been cautious. In recent years, the scale of its pig breeding sector has increased greatly. Among them, the sales revenue of pig business in 2019 was 1.371 billion yuan, a year-on-year increase of 53.36%; In 2020, the income of pig breeding business was 3.794 billion yuan, with a year-on-year increase of 175.46%. In that year, the number of pigs sold was nearly 1 million. From the data of 2021, the number of columns doubled.
However, as the leader in the feed field, Guangdong Haid Group Co.Limited(002311) 2021 saw an external sales volume of about 18.77 million tons of feed (excluding 860000 tons of internal breeding consumption), an increase of 28% year-on-year; At the same time, the annual operating revenue reached 86.740 billion yuan, a year-on-year increase of 43.79%, a record high. In the performance express, Guangdong Haid Group Co.Limited(002311) said that the company’s feed sales scale and comprehensive competitiveness of products increased steadily.
In fact, for feed sales, Guangdong Haid Group Co.Limited(002311) previously set the goal of achieving 40 million tons by 2025. Therefore, in 2021, Guangdong Haid Group Co.Limited(002311) employees increased by more than 7000, a year-on-year increase of 28%, and the annual employee compensation and other related expenses of the company increased by more than 40%. At the same time, due to the expansion of scale, the increase of loan amount and the rise of loan interest rate in China, the financial expenses of Guangdong Haid Group Co.Limited(002311) increased by about 70%.
explore a better breeding model
At present, Guangdong Haid Group Co.Limited(002311) has not disclosed the details of its sales in 2021. According to the disclosure of Guangdong Haid Group Co.Limited(002311) 2020 annual report, its feed sales reached 48.765 billion yuan, accounting for 80.84% Shenzhen Agricultural Products Group Co.Ltd(000061) sales amounted to 6.368 billion yuan, accounting for 10.56%, including income from seedling business, pig breeding, poultry industry chain business and aquaculture business; In addition, the sales of mobile insurance products reached 665 million yuan, accounting for 1.10%.
For the pig breeding plan in 2022, at the investor exchange meeting in July 2021, Guangdong Haid Group Co.Limited(002311) said that while developing the breeding business, the company has been thinking about how large the breeding scale is appropriate and what the breeding mode is the best, “At present, the company is also exploring and learning from a better breeding model, and later with the help of a better breeding model to realize the strategic planning of the company’s pig breeding business.”.
On May 20, 2021, after the annual general meeting of shareholders, Guangdong Haid Group Co.Limited(002311) also held a shareholders’ exchange meeting, and the reporter of daily economic news also attended as a shareholder. At that time, Xue Hua, chairman of Guangdong Haid Group Co.Limited(002311) introduced that in the next five years, the feed business of the company will be the leader and the core, followed by seedlings and animal protection.
Xue Hua said that the company’s feed business has certain advantages in the industry and has a good development momentum. The foundation of seedling and animal protection has been established. The three have formed a “Trinity” relationship, and the ultimate goal is to establish the overall advantages of the company.
On the afternoon of February 25, the reporter also contacted the Secretary of Guangdong Haid Group Co.Limited(002311) but failed to achieve further interview.
