\u3000\u3 China Vanke Co.Ltd(000002) 840 Zhejiang Huatong Meat Products Co.Ltd(002840) )
The event company issued its annual report for 2021.
The downward cycle of pig breeding affected the company’s performance. In 2021, the company achieved a revenue of 8.342 billion yuan, a year-on-year increase of – 5.59%, of which fresh pork, fresh poultry, feed and ham contributed 7.663 billion yuan, 221 million yuan, 61 million yuan and 42 million yuan respectively, a year-on-year increase of – 6.41%, – 10.86%, – 42.03% and – 10.77%. The net profit attributable to the parent company was -192 million yuan, a year-on-year increase of – 242.46%; The net profit attributable to the parent company after deducting non-profit was -238 million yuan, a year-on-year increase of -633.47%. The expense rate during the period was 3.71%, with a year-on-year increase of + 1.35pct; The comprehensive gross profit margin was 2.73%, with a year-on-year increase of -0.64pct. The decline of the company’s performance is mainly due to the continuous decline of pig prices, the significant increase of financial expenses (106 million yuan) and the provision of asset impairment loss of 201 million yuan. 21q4’s revenue was 2.097 billion yuan, a year-on-year increase of – 22.16%; The net profit attributable to the parent company was -197 million yuan, a year-on-year increase of -544.99%; The expense rate during the period was 4.05%, with a year-on-year increase of + 3.49pct; The comprehensive gross profit margin was 0.51%, with a year-on-year increase of -1.08pct.
Pig production capacity continues to expand, and the growth potential of breeding business is huge. Based on the future development of the company
Strategy, the company continues to promote pig breeding projects. The basic construction of 18 farms in Zhejiang Province has been completed, and some subsidiaries have begun to introduce pigs into production. In 2021, the company sold 137000 pigs; 22q1 company sells about 162100 pigs, increasing month by month. By the end of the 21st century, the company’s fixed assets were 3.211 billion yuan, a year-on-year increase of + 102.74%; Construction in progress was 1.635 billion yuan, a year-on-year increase of + 43.48%; Productive biological assets were 324 million yuan, a year-on-year increase of + 36.69%. In addition, at the end of the 21st year, the book value of the company’s biological assets was 614 million yuan, accounting for 8.60% of the total assets, of which 180 million yuan has been accrued for the depreciation or impairment of biological assets. In 2022, the company plans to build Lishui fattening farm and Anhui Jixi project of 250000 commercial pigs per year. It is expected that about 2.6 million commercial pigs per year can be produced after all of them are put into operation in 2023.
In the 21st year, the demand for pig slaughtering recovered and the sales volume increased rapidly. In 2021, affected by the recovery of pig production capacity in China and the decline of pig prices, the overall demand of the company’s pig slaughtering market began to recover. In 2021, the company slaughtered 3.02 million pigs, and in 2022, the company aims to slaughter 5 million pigs. The sales volume of the company’s slaughtering and meat processing business reached 418300 tons, a year-on-year increase of + 34.67%; Its revenue accounts for 95.28% of revenue. With the gradual improvement of breeding business, the business structure of the company will be gradually balanced. The gross profit margin of the company’s slaughtering business was 2.43%, with a year-on-year increase of -0.91pct. In terms of deep processing of meat products, while strengthening the research and development of new products, the company actively develops new retail formats.
The investment suggestion company is a national key leading enterprise in agricultural industrialization and a leading enterprise in large-scale livestock and poultry slaughtering in Zhejiang Province. It lays out the whole industrial chain of “feed breeding slaughtering deep processing of meat products”. The number of pigs sold and slaughtered by the company continued to grow, actively advancing to 2.6 million and 5 million respectively; The superimposed pig cycle may usher in a reversal market, and the overall performance of the company can be expected. We give a “recommended” rating.
The risk indicates the risk of animal diseases and natural disasters; Risk of pig price fluctuation; The risk of sharp fluctuations in the price of raw materials; Risks of food safety, etc. Endowment
