In front of the “falling” pig price, “Zhumao” can not escape the performance decline.
On January 18, Muyuan Foods Co.Ltd(002714) disclosed the performance forecast. It is estimated that the company’s revenue in 2021 will be 77 billion yuan to 80 billion yuan, and the net profit attributable to the parent company will be 6.5 billion yuan to 8 billion yuan, a year-on-year decrease of 70.86% to 76.32%.
According to the data, Muyuan Foods Co.Ltd(002714) realized a net profit attributable to the parent company of 8.704 billion yuan in the first three quarters of 2021, including a loss of 822 million yuan in the third quarter. According to this calculation, the loss of Muyuan Foods Co.Ltd(002714) ranged from 704 million yuan to 2.204 billion yuan in the fourth quarter of 2021.
For the decline in performance, Muyuan Foods Co.Ltd(002714) said that during the reporting period, the number of pigs sold by the company increased significantly compared with the same period of the previous year. However, due to the gradual recovery of China’s pig production capacity, the pig price decreased significantly compared with the same period of the previous year in 2021, resulting in a significant decline in the company’s operating performance in 2021.
According to the data of China pig network, the slaughter price of pigs in 2021 decreased from 36.7 yuan / kg at the beginning of the year to 10.5 yuan / kg at the beginning of October, a decrease of more than 70%. The loss of pig breeding enterprises is also much higher than that in previous years.
In 2022, under the background of the recovery of pig production capacity and the increase of breeding enterprises, pig prices continue to decline. According to the latest monitoring data of the national development and Reform Commission, from January 10 to 14, the national average pig grain price ratio was 5.75 ∶ 1, entering the three-level early warning range of excessive decline.
Muyuan Foods Co.Ltd(002714) said that the risk of changes in pig market price is a systematic risk of the whole pig production industry, which is an objective and uncontrollable external risk for any pig producer.
In addition, animal disease is the main risk faced by the development of animal husbandry industry, especially the outbreak of African swine fever since August 2018, which may have a significant impact on the company’s operating performance.
