The market is in shock, but the agricultural sector has quietly risen recently. In early trading today, the agricultural sector led the rise sharply, and many stocks such as pork and planting rose by the limit. Since the day of A-share rebound on March 16, the agriculture, forestry, animal husbandry and fishery (CITIC) index has strengthened continuously, with a cumulative increase of 13%. Why did this relatively "unpopular" industry suddenly break out?
As of today's close, the Chinese medicine sector has continued to rise as of noon.
pork and planting sectors performed strongly
In early trading on the 25th, the trend of the agricultural sector was strong, and the concepts of pork, planting and aquatic products rose one after another. In terms of pork, Jiangxi Zhengbang Technology Co.Ltd(002157) rose by the limit, Hunan New Wellful Co.Ltd(600975) , Tianyu Eco-Environment Co.Ltd(603717) rose by more than 5%. In terms of planting, Zhongnongfa Seed Industry Group Co.Ltd(600313) , Hunan Haili Chemical Industry Co.Ltd(600731) and Jiangsu Provincial Agricultural Reclamation And Development Co.Ltd(601952) rose by more than 8%. Aquaculture, Hainan Shennong Technology Co.Ltd(300189) up more than 6%.
Since the big rebound of A-Shares on March 16, the agriculture, forestry, animal husbandry and fishery (CITIC) index has risen for five consecutive days. Although it has been adjusted in the previous two trading days, the cumulative rise has still reached 13%. Some sub sectors performed even better. For example, the livestock breeding index (CITIC) rose by more than 13% and the planting index (CITIC) rose by more than 14%.
In recent days, the Ministry of finance has made it clear that it will not provide a stable package of grain and oil production in rural areas in 2022. The Ministry of finance has not been lax in supporting the expansion of agricultural production and disaster relief. It has made it clear that the Ministry of agriculture will not be lax in supporting the development of agriculture in 2022.
what is the layout value of agricultural shares
Can the rise of the agricultural sector continue? Does agricultural stocks have the value of long-term layout? In the view of institutions, the two industrial chains in the agricultural sector have long-term development support. For the planting industry chain, the full implementation of the seed industry revitalization plan will promote the seed industry to enter a new stage of development; For the breeding industry chain, the industry generally expects that the "pig cycle" may go out of the bottom and enter the rebound cycle in the middle of the year.
Guosen Securities Co.Ltd(002736) said that thanks to the state's subsidies and policy support for agricultural production, China's agriculture can still maintain self-sufficiency. From the transgenic safety traits publicized by the Ministry of agriculture, the follow-up promotion rhythm of transgenic in China is expected to accelerate the landing. Referring to the continuous growth of soybean yield in the United States after the implementation of genetically modified seeds, China's agricultural production efficiency is expected to enter a high-speed improvement channel after the implementation of genetically modified seeds, and build an agricultural power on the basis of ensuring food security.
The agency said it was optimistic about the upward trend of grain price boom in 2022. On the one hand, it is good for the planting and seed sector. On the other hand, the rise of the cost of feed raw materials may accelerate the reversal of the pig price cycle, so it is optimistic about the investment opportunities of the pig sector.
As for when the starting point of the new round of pig cycle will appear, Everbright Securities Company Limited(601788) Gao Ruidong team said that the pig price probably bottomed out in the second quarter and the starting point of the new round of pig cycle will be confirmed. In each pig cycle, the pig breeding sector generally experiences two typical rising stages, which appear at the end of the pig cycle and after the opening of a new pig cycle. Since October last year, the pig breeding sector has risen, reflecting the market in the first stage. In the future, after the bottom of pig prices rises in the second quarter, the pig breeding sector may rise again.
traditional Chinese medicine sector continues to strengthen
Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) 8 connecting sector
Since the products of many listed traditional Chinese medicine enterprises were listed in the ninth edition of covid-19 diagnosis and treatment plan, the concept sector of traditional Chinese medicine rose strongly. In the morning trading on March 25, Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) again raised the limit, realizing eight consecutive boards.
On the news, Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) 3 said on the investor interaction platform on March 16 that the company's product "Qingwen hufei Granule" is an in-hospital preparation of traditional Chinese medicine applied and approved by Shaanxi Institute of traditional Chinese medicine for the prevention and treatment of covid-19 pneumonia, and the company has signed a strategic cooperation agreement with the Institute.
On March 17 Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) said that the company's "development of coronavirus 3CL protease inhibitor" project has been applied for the project jointly issued by Shaanxi Provincial Department of industry and information technology and the Department of finance. The 3CL protease inhibitor and protacs synthesized in the project have applied for patents from China, the United States and Japan, and preliminarily constructed the patent pool of anti covid-19 virus drugs.
According to the performance forecast of 2021 disclosed by Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) disclosure, during the reporting period Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) is expected to realize a net profit attributable to the parent company of 87 million to 97 million yuan, with a year-on-year increase of 9.97% to 22.61%; It is expected to realize the deduction of non net profit of 88 million yuan to 98 million yuan, with a year-on-year increase of 21.58% to 35.39%. For the growth of performance during the reporting period, Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) explained that it was mainly due to the increase in the sales volume of the company's self-produced products and the increase in the income of pharmaceutical circulation business.
Xiangcai Securities said that with policy support, traditional Chinese medicine still has great investment opportunities. From the demand side, the rigid demand characteristics of the pharmaceutical industry and the upgrading of pharmaceutical consumption jointly support the steady growth of the demand of the traditional Chinese medicine industry. From the perspective of policy, a series of favorable policies have been formed to promote the innovation of traditional Chinese medicine, the development of formula particles, the support of medical insurance and payment policies, and the continuous addition of traditional Chinese medicine decoction pieces can not exceed 25%, bringing policy dividends and new demand to the traditional Chinese medicine industry. From the perspective of performance, the traditional Chinese medicine industry has walked out of the low point and showed a marginal improvement trend. From the valuation side, the traditional Chinese medicine industry still has relatively obvious valuation advantages. "Policy + pharmaceutical consumption upgrading + performance improvement + valuation advantages" jointly build investment opportunities for the traditional Chinese medicine industry, and cost promotion constitutes a short-term driving factor.
