Recently, the trend of the agricultural sector has become stronger and stronger, causing heated discussion among public offering institutions. On December 27, in the agricultural sector, many sub sectors such as ecological agriculture, pesticides and veterinary drugs, chicken concept, pork concept, agriculture, animal husbandry, feeding and fishing showed good performance. Last week, the agriculture, forestry, animal husbandry and fishery sector increased by more than 6% in five trading days, ranking in the forefront of CITIC’s primary industry. Some institutions believe that the agricultural sector will continue to improve and can tap investment opportunities.
the agricultural sector is warm
China International Capital Corporation Limited(601995) pointed out that under the policy direction of stabilizing production and ensuring supply, China’s ration collection and storage system will continue and the collection and storage price will be in the upward range, and the measures to increase the yield of forage grain, especially soybean, are expected to continue to increase. Food security lies not only in ensuring food supply, but also in improving the overall competitiveness of the agricultural industrial chain. Relevant policies aim to improve the overall competitiveness of the industrial chain through various links. Intensive management and scientific and technological innovation will become the driving force.
Tianfeng Securities Co.Ltd(601162) pointed out that only through “institutional change” and “technological change” can the scattered seed industry accelerate its development and benefit the leading enterprises, so as to maintain the R & D power and improve the breeding level. Seed industry approval standards, approval methods and judicial procedures can be carried out under the tone of “protecting seed industry innovation”. Companies that attach importance to R & D investment and have strong innovation ability are expected to obtain greater market share.
investment through professional products
Recently, listed companies related to the agricultural sector have attracted the attention of institutions. Taking Beijing Dabeinong Technology Group Co.Ltd(002385) as an example, the research activity of the company on December 21 attracted the group participation of Bodao fund, BlackRock, RONGTONG fund, Shanghai Investment Morgan fund, huitianfu fund and other institutions.
How should investors grasp the market of the agricultural sector?
Facing the all inclusive agricultural sector, the fund focused on some core areas. For example, for the aquaculture sector, Cathay Pacific Fund pointed out that the aquaculture sector has opened the road of rebound since the end of August. After peaking in mid November, it has made a correction again recently and exceeded the high point in November. Although the sector performed well, the pig cycle is still rebounding rather than reversing.
“According to the data of the Ministry of agriculture and rural areas, the number of 5-month-old fattening pigs in October and November increased by 34% and 26% year-on-year, corresponding to the number of pigs sold during the new year’s day and Spring Festival two months later. The supply of pigs is still fully guaranteed when the holiday consumption season comes. At the same time, the slaughter volume of slaughtering enterprises above Designated Size in November was 26.49 million, a significant increase of 63% year-on-year, which also shows the supply of pigs in the short term The stress level is still high. Due to the booming supply and demand of pork at the end of the year and the beginning of the year, it is less likely that the short-term pig price will rise or fall sharply; In the medium and long term, there is still the possibility of a double bottom in pig prices, but with the continuation of the trend of de production capacity in the industry, the boom of the breeding industry is expected to reverse next year. ” Cathay Pacific Fund said.
“There are many subdivided fields within the agricultural sector, and the investment logic of each subdivided field is different. Specific to a single stock, its fundamental information varies greatly. It is recommended that investors choose fund products as the way of investment. Investors can choose tool products, such as subdivided track ETF, for theme investment; they can also choose the initiative with timing and stock selection ability in the agricultural sector Layout of equity investment products. ” There are suggestions from fund managers.
(China Securities Journal)
