In 2021, the aquaculture sector is under pressure, and the profitability of the seed sector continues to improve
In 2021, the agricultural industry realized an operating revenue of 852.03 billion yuan, a year-on-year increase of 17.3%, and the net profit attributable to the parent company was - 30.01 billion yuan, a year-on-year decrease of 142.2%. In 2022q1, the operating revenue reached RMB 200602 billion, with a year-on-year increase of 2.9%; The net profit attributable to the parent company was -9.59 billion yuan, a year-on-year decrease of 162.9%. In 2021, the gross profit margin of industrial sales was 8.56%, with a year-on-year decrease of 12.20pct; The net profit margin on sales was - 3.16%, down 14.12pct year-on-year; The return on net assets was -1.94%, a year-on-year decrease of 6.73pct. The gross profit margin of 2022q1 industry sales was 6.51%, down 12.44pct year-on-year; The net profit margin on sales was - 5.23%, down 14.02pct year-on-year; The return on net assets was - 5.23%, down 8.66pct year-on-year. Overall, the profitability of 2021 decreased significantly year-on-year, and the profitability of 2022q1 continued to decline.
Sub industry analysis: the seed sector benefited from the boom in grain prices, and the profitability improved significantly
In 2021, the income of each sub industry of agriculture increased year-on-year; In terms of profits, except for the animal protection, seed, Shenzhen Agricultural Products Group Co.Ltd(000061) processing and forestry sectors, the profits increased by 4.77% / 68.44% / 418.45% year-on-year respectively, and the profits of other sectors decreased year-on-year, among which the fishery sector decreased the most year-on-year, with a decrease of 417.29%.
Livestock and poultry breeding: in 2021, the number of pigs sold by listed companies continued to increase, and the net profit of poultry enterprises declined
In 2021, the income of pig raising enterprises reached 386.8 billion yuan, a year-on-year increase of 12.3%, and the net profit attributable to mothers was - 39.74 billion yuan, a year-on-year decrease of 111.5%. In 2022q1, pig raising enterprises achieved a revenue of 83.7 billion yuan, a year-on-year decrease of 78.9%, and the net profit of the industry was - 14.77 billion yuan, a year-on-year decrease of 65.2%. In 2022q1, the pig price of the industry is still at a cyclical low, and the industry as a whole is still facing serious losses. Coupled with the rising feed costs, it is more difficult for breeding enterprises to reduce costs and increase efficiency.
Poultry breeding: in 2021, the income of poultry breeding enterprises reached 36.51 billion yuan, a year-on-year increase of 15.1%; The net profit attributable to the parent company was 320 million yuan, a year-on-year decrease of 89.5%. In 2022q1, broiler breeding enterprises realized an income of 8.49 billion yuan, a year-on-year increase of 1.2%; The net profit attributable to the parent company was -730 million yuan, a year-on-year decrease of 201.7%. Poultry production capacity is in the process of slowly de industrialization, and the overall performance of poultry enterprises continues to be under pressure. It is expected that 2022h2 will usher in a resonant upward market of pig and chicken prices.
Feed and seeds: in 2021, the revenue of feed enterprises increased significantly year-on-year, and the profitability of seed enterprises improved year-on-year
Feed: in 2021, feed enterprises realized a revenue of 157.08 billion yuan, a year-on-year increase of 37.0%; The net profit attributable to the parent company was 370 million yuan, a year-on-year decrease of 93.8%. The feed industry continued to recover in 2021. The 2022q1 industry benefited from the high stock of livestock and poultry, continued the growth trend, and realized an income of 35.33 billion yuan, a year-on-year increase of 72.6%; The net profit attributable to the parent company was 1.43 billion yuan, a year-on-year increase of 23.3%. The feed industry maintained a positive trend, and the income of pig feed business improved significantly year-on-year. However, due to the high price of raw materials, the profit growth was relatively under pressure.
Seed: in 2021, seed enterprises realized a revenue of 9.74 billion yuan, a year-on-year increase of 18.1%, and the net profit attributable to the parent company was 650 million yuan, a year-on-year increase of 61.0%. Grain prices rose, the planting industry rebounded, and the profitability of upstream seed enterprises improved significantly. In 2022q1, the prosperity of the industry continued, and the income of seed enterprises was 2.24 billion yuan, an increase of 11.5% year-on-year; The net profit attributable to the parent company was 190 million yuan, a year-on-year increase of 113.5%. The boom of commodity grain prices is superimposed on the commercialization of genetically modified crops. It is expected that the seed industry will continue the boom in the next 2-3 years.
Risk warning: the sharp drop in livestock and poultry and Shenzhen Agricultural Products Group Co.Ltd(000061) prices will directly affect the income and profit of enterprises; The outbreak of animal epidemic will lead to the increase of animal mortality and the decline of consumer demand, which will directly and indirectly affect the performance of enterprises.
