\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 98 Wens Foodstuff Group Co.Ltd(300498) )
Core view:
The event company released the annual report of 2021.
The broiler business made a profit and the pig breeding suffered a deep loss. In 2021, the company achieved a revenue of 64.965 billion yuan, a year-on-year increase of – 13.31%, of which broiler breeding and pork breeding contributed 30.328 billion yuan and 29.494 billion yuan respectively, a year-on-year increase of + 24.84% and – 36.36%. The net profit attributable to the parent company was -13.404 billion yuan, a year-on-year increase of -280.51%; The net profit attributable to the parent company after deducting non-profit was -14.666 billion yuan, a year-on-year increase of -329.82%. The expense rate during the period was 11.3%, with a year-on-year increase of + 1.27pct; The comprehensive gross profit margin is -8.23%. 21q4’s revenue was 18.388 billion yuan, a year-on-year increase of – 5.62%; The net profit attributable to the parent company was -3.703 billion yuan, a year-on-year increase of -354.02%; The expense rate during the period was 11.5%, with a year-on-year increase of -0.6pct; The comprehensive gross profit margin is -8.27%. Due to the continuous downward impact of pig prices and high breeding costs, the company’s pig breeding business suffered a deep loss. In addition, the company amortized 495 million yuan of equity incentive expenses in 21 years; The provision for impairment of consumable biological assets and productive biological assets on hand is about 2 billion yuan, of which the impairment of breeding pigs is 1.907 billion yuan.
In the 21st year, the company’s pigs accounted for about 2% of the market, with a target of 18 million pigs in the 22nd year. In the 21st year, the company sold 132174 million pigs, with a year-on-year increase of + 38.5%, accounting for about 2% of the national pigs. The average selling price of the company’s pigs was about 17.39 yuan / kg, a year-on-year increase of – 48.18%; The estimated average weight of the column is about 118.09kg, a year-on-year increase of – 4.17%. The average selling price of pigs of 21q4 company was 15.06 yuan / kg, up 9.37% from Q3; The average weight was 116.22kg, down 0.59% from Q3. By the end of the 21st century, the company’s fixed assets were 35.404 billion yuan, a year-on-year increase of + 24.19%; Construction in progress was 4.752 billion yuan, a year-on-year increase of – 44.63%; Productive biological assets were 4.764 billion yuan, a year-on-year increase of – 48.36%. In order to ensure the safety of the company’s cash flow, the company suspended the production capacity of new pig farms and actively expanded financing channels. In the year of 22, the sales target of the company is about 18 million pigs, and the comprehensive cost target is controlled at 16-17 yuan / kg.
The company’s broiler sales accounted for 11% of the market, maintained a growth rate of 5% in 22 years, and sold 1.101 billion broilers in 21 years, a year-on-year increase of + 4.8%, accounting for about 11% of the total sales of yellow feather chickens and white feather chickens in China. The average selling price of broilers of the company was 13.2 yuan / kg, a year-on-year increase of + 13.5%; The gross profit margin of sales was 9%, with a year-on-year increase of + 8.62pct. The company’s broiler sales target in 22 years is about + 5% year-on-year. Affected by the rising price of feed raw materials, the company’s broiler breeding cost has increased; However, benefiting from the fact that the sales price has maintained a historically high level for many consecutive months, the performance of broilers is acceptable. From the industry level, the stock of yellow feather chicken grandparents and parents showed a downward trend. At the end of 21 years, the total stock was 2.5586 million units and 229726 million units respectively, with a year-on-year increase of – 1.47% and – 6.3%. In the process of continuous capacity reduction, the price of yellow feather chicken may have a better performance in 22h2.
It is suggested that the company take pig and broiler breeding as the core dual main business. With the arrival of the upward cycle, the superimposed listing continues to grow, and the company’s performance may be expected. Considering that the 22-year pig cycle may usher in the upward stage, the profitability will improve, and the yellow chicken price fluctuates at a high level to maintain good profitability, we expect the company’s performance to turn loss into profit in 22 years. It is estimated that the EPS from 2022 to 2023 will be 0.14 yuan and 2.66 yuan respectively, maintaining the “recommended” rating.
Risk tips
1. Risks of animal diseases and natural disasters;
2. Risk of raw material supply and price fluctuation;
3. Risk of pig price fluctuation;
4. Risks of policy changes, etc.
