\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 98 Wens Foodstuff Group Co.Ltd(300498) )
The company’s goal of reducing the cost of pig breeding is clear, and the market of pigs and chickens resonates slowly, with a “buy” rating
Wens Foodstuff Group Co.Ltd(300498) released the first quarterly report of 2022. In 2022q1, the company achieved a revenue of 14.586 billion yuan (- 13.26%), and a net profit attributable to the parent company of -3.763 billion yuan (- 792.39%). In 2022q1, the company has accrued 1.2 billion yuan of assets (commercial pigs) falling price reserves; The total loss of investment income and income from changes in fair value was 292 million yuan. After deduction, the net profit loss of the company’s main business was about 2.3 billion yuan, which was in line with expectations. According to the profit forecast before maintenance, the net profit attributable to the parent company from 2022 to 2024 is expected to be RMB 588 / 177.09/16.523 billion respectively, the corresponding EPS is RMB 0.09/2.79/2.60 respectively, and the current share price is 231.7/7.7/8.2 times that of PE. As the price of live pigs bottomed out and rose, the market of pigs and chickens resonated slowly. The company will gradually turn to the performance cashing stage and maintain the “buy” rating.
The company’s pig breeding cost still achieves good cost control under the disturbance of winter
Pig breeding sector: the company sold 4.0235 million pigs (+ 91.85%) in 2022q1, the average sales price was 12.98 yuan / kg, the average weight of commercial pigs was 117.79 kg / head, and the average loss was about 570590 yuan / head. The comprehensive breeding cost of the company in March was slightly lower than 18 yuan / kg, showing a steady downward trend compared with 2021q4. In terms of key production indicators, the company’s piglet cost in March was about 430 yuan / head, the feed meat ratio was about 2.8, and the psy was about 20. The company’s comprehensive cost of pigs still has a large space to reduce. It is expected that in 2022q2, with the weakening of the impact of the epidemic, the reduction of dead Amoy amortization and the adjustment of feed formula structure, the company’s comprehensive cost of pigs will further decrease month on month. The company expects the comprehensive cost of commercial pigs to be reduced to less than 17 yuan / kg in 2022.
2022q1 company controlled the quantity and price of meat and poultry, and the resonance market of pigs and chickens came slowly
Meat and poultry breeding sector: under the background of high supply of pigs and pre judgment of price suppression, Q1 poultry breeding sector of the company adopts the strategy of controlling quantity and stabilizing price. 2022q1 company sold 227 million yellow feather broilers (+ 0.14%), and the average sales price was 13.95 yuan / kg. Affected by the rise of feed price cost, the company’s Q1 yellow feather broiler full cost increased by 0.4 yuan / kg to about 13.4 yuan / kg month on month compared with 2021, and the breeding profit was about 1 yuan / piece. It is expected that with the opening of the upward cycle of pig price and the upward pressure of broiler price, the breeding profit in the second half of 2022 is expected to be improved compared with the first half of the year. In addition, the company actively promoted downstream poultry slaughtering and cooked food processing. Prefabricated vegetable products have accumulated a lot. Under the background of repeated outbreaks, the company gradually accelerated the docking of downstream channels and customer groups, and the high growth rate and sales proportion can be expected to increase.
Risk tips: rising prices of feed raw materials, breeding epidemic risk, etc
