At the last node of the periodic report disclosure, listed companies in the pig breeding industry successively handed over their transcripts under the industry background at the bottom of the cycle. Pig giant Muyuan Foods Co.Ltd(002714) also suffered performance losses in the first quarter when pig prices continued to decline and feed costs were high.
The first quarterly report of 2022 disclosed by Muyuan Foods Co.Ltd(002714) on the evening of April 29 shows that the company achieved an operating revenue of 18.278 billion yuan in the first quarter of this year, a year-on-year decrease of 9.3%; Net profit loss of 5.18 billion yuan, down 174.4%.
On that night, New Hope Liuhe Co.Ltd(000876) also released the first quarterly report of 2022, which showed that the operating revenue during the period was 29.506 billion yuan, a year-on-year increase of 0.91%; The net profit loss was 2.879 billion yuan, a sharp year-on-year decrease of 2204.5%.
Earlier, Wens Foodstuff Group Co.Ltd(300498) disclosed that the first quarterly report of 2022 showed that during the period, the company realized an operating revenue of 14.586 billion yuan, a year-on-year decrease of 13.26%; The net profit loss was 3.763 billion yuan, down 792.39% year-on-year.
In the first quarter, the overall price of pigs in China fell again. According to the data of the Ministry of agriculture and rural areas, as of the third week of March, the average price of pigs in China had fallen for 15 consecutive weeks.
At the same time, the cost pressure of listed pig breeding companies is prominent. Under geographical factors, the price of soybean meal in China soared. Before the Spring Festival, the price of soybean meal can still be maintained at about 3600 ~ 3700 yuan / ton. After the festival, affected by the situation of the Russian Ukrainian war, the price of soybean meal soared to 5500 yuan / ton in the first quarter.
In 2021, enterprises in the pig breeding industry generally suffered losses.
Wens Foodstuff Group Co.Ltd(300498) 2021 achieved an operating revenue of 64.964 billion yuan, a year-on-year decrease of 13.31%; The net profit loss was 13.404 billion yuan, a year-on-year decrease of 280.51% New Hope Liuhe Co.Ltd(000876) also lost 9.591 billion yuan in 2021, a year-on-year decrease of 293.98%
However, in 2021, Muyuan Foods Co.Ltd(002714) still maintained its profitability by virtue of its cost advantage.
On April 29, the 2021 annual report disclosed by Muyuan Foods Co.Ltd(002714) at the same time showed that during the reporting period, the company achieved an operating revenue of 78.89 billion yuan, a year-on-year increase of 40.18%; The company plans to pay a net dividend of RMB 1.085 billion per share, including a year-on-year decrease of RMB 1.085 billion.
Since April, the national pig market price has rebounded. According to Zhuo Chuang data, as of April 28, the average selling price of Sanyuan pigs across the country was 13.45 yuan / kg, up 10.82% month on month. Recently, 2209, the main contract of China’s pig futures, also showed obvious signs of rebound. The highest intraday offset was 18700 yuan / ton on April 29, up more than 16% from 16080 yuan / ton on March 17.
Based on this, the view that the pig market has bottomed out and the industry is expected to usher in an inflection point has attracted attention again.
New Hope Liuhe Co.Ltd(000876) said that although the number of fertile sows is still at a relatively high level, it has passed the highest point and began to decline gradually. At the end of March 2022, the number of fertile sows in China was 41.85 million, down 8% from 45.64 million at the end of June 2021. It may continue to decline in the future, pushing the pig cycle gradually into the upward range.
Feng Yonghui, an analyst at sozhu.com, believes that the most depressed stage of the pig market may end soon. Since entering the loss in June last year, the market has accumulated losses for nearly 11 months, and the depth of losses is very obvious. After the sharp rebound in pig prices, the situation of the pig market out of loss is also gradually increasing.
Or based on the recognition of the cycle reversal logic, in the first quarter of 2022, northward capital concentrated on increasing the positions of pig breeding stocks.
In the first quarter, Hong Kong Central Clearing Co., Ltd. increased its shareholding in Wens Foodstuff Group Co.Ltd(300498) by 12231300 shares, and the shareholding ratio increased from 2.36% at the end of 2021 to 2.55%. At the same time, Hong Kong Central Clearing also increased its positions in Muyuan Foods Co.Ltd(002714) and New Hope Liuhe Co.Ltd(000876) in the first quarter, with an increase of 54372000 shares and 812600 shares respectively during the period.
In addition, two natural person shareholders were added to the list of Muyuan Foods Co.Ltd(002714) top ten shareholders in the first quarter, and Cathay Pacific CSI animal husbandry ETF also became the tenth largest shareholder of New Hope Liuhe Co.Ltd(000876) during the period.
