Core view
[market performance] last week, the CSI 300 index closed at 4940.37, up or down + 0.39% in one week and – 5.20% year to date; The Shanghai Composite Index closed at 3639.78, up or down + 0.60% in one week and + 4.80% year to date. Among the 28 primary industries in Shenwan, the top three rose last week were leisure services (4.88%), national defense and military industry (+ 4.53%) and comprehensive (+ 4.44%); The top three declines were food and beverage (- 4.65%), public utilities (- 1.27%) and automobiles (- 1.05%). Among them, the agriculture, forestry, animal husbandry and fishery sector rose or decreased by + 0.04% last week, ranking 23rd. Since the beginning of the year, the agriculture, forestry, animal husbandry and fishery sector has increased or decreased by – 4.93%, ranking 25th.
[key information] recently, the Ministry of agriculture and rural areas, together with the national development and Reform Commission, the Ministry of Commerce, the people’s Bank of China, the State Administration of Taxation, the China Securities Regulatory Commission and the all China Federation of supply and marketing cooperatives, organized the identification of the Seventh Batch of national key leading enterprises in agricultural industrialization. After selection and recommendation by all provinces (regions and cities), expert review organized by the Ministry of agriculture and rural areas, deliberation and publicity at the National Joint Conference on agricultural industrialization, it is decided to identify 412 enterprises such as Beijing Zhenweifang Food Co., Ltd. as national key leading enterprises in agricultural industrialization, which is valid until the release of the monitoring results in 2024. (source: Ministry of agriculture and rural areas)
[Key announcement]
[ Tech-Bank Food Co.Ltd(002124) ] announcement on participating in the establishment of Agricultural Bank of China investment Nanjing hanshiwei structured debt to equity investment plan and completing the initial registration: the company held the 47th meeting of the seventh board of directors on December 7, 2021, and considered and approved the proposal of the company participating in the establishment of agricultural Bank of China investment Nanjing hanshiwei structured debt to equity investment plan (hereinafter referred to as the “investment plan”). Agricultural Bank of China Financial Assets Investment Co., Ltd. (hereinafter referred to as “Agricultural Bank of China investment”) plans to establish an investment plan, which is jointly invested by the company and Agricultural Bank of China investment to subscribe for the share of the investment plan, with a total investment amount of 400 million yuan, of which the company subscribes 200 million yuan, accounting for 50%.
[Topic: Pig cycle – cyclical fluctuations dominated by supply and demand]
Pig cycle refers to the phenomenon that pork prices fluctuate periodically in a certain time range affected by the relationship between supply and demand. Affected by external factors, the duration of each pig cycle and price fluctuation vary greatly, which is not a simple repetition of the previous cycle. Since 2006, China’s pig breeding market has experienced three complete cycles. This round of pig cycle began in 2018. The influencing factors are complex. The speed and amplitude of rise and fall are much faster than before, which can be called “super pig cycle”. The pig cycle has experienced a rise in pig prices, a high shock range, a rapid decline, and is currently at the bottom stage.
Investment advice
Pig breeding: there is still a mismatch between supply and demand in the current market, and the inflection point of the pig cycle has not yet arrived. It is suggested to pay attention to self breeding and autotrophic leaders with cost advantages and second-line pig enterprises with sufficient reserves of sows.
Seed industry: Policy dividends are continuously released to ensure China’s food security. The pattern of grain supply and demand has changed, the commercialization of GM has entered the fast lane, and the high prosperity of the seed industry continues. It is suggested to pay attention to the leading enterprises with strong R & D strength and rich GM reserves.
Risk statement
Macroeconomic fluctuations; Non plague situation; Extreme weather effects, etc.
