After Muyuan Foods Co.Ltd(002714) 2021's performance is expected to drop by 70%, another pig enterprise is expected to suffer huge losses last year.
Recently, Wens Foodstuff Group Co.Ltd(300498) disclosed the performance forecast for 2021, with an estimated loss of 13 billion yuan to 13.8 billion yuan, a year-on-year decrease of 275.06% - 285.84%, and a profit of 7.426 billion yuan last year. so far, Wens Foodstuff Group Co.Ltd(300498) has become the "loss king" of the 2021 annual report of a shares, exceeding the previous estimated loss of 11.012 billion yuan of Baiji Shenzhou.
According to the company announcement
chicken and duck profits are difficult to stop the sharp decline in pig prices
For the significant advance loss of performance in 2021, Wens Foodstuff Group Co.Ltd(300498) attributed it to the sharp decline in the price of live pigs. At the same time, due to the continuous rise in the price of feed raw materials, the fattening of some pig seedlings purchased by the company and the continuous promotion of pig breeding optimization, the profit of the company's pig breeding business decreased significantly year-on-year, resulting in a deep loss.
The performance forecast shows that during the reporting period, Wens Foodstuff Group Co.Ltd(300498) sold 13.2174 million pigs (including hairy pigs and fresh products), and the average sales price of hairy pigs was 17.39 yuan / kg, a year-on-year decrease of 48.18%.
if calculated according to the loss and sales volume disclosed by the company, the loss spread to each pig is about 1000 yuan.
In contrast, last year's Wens Foodstuff Group Co.Ltd(300498) poultry business remained profitable as a whole. The performance forecast shows that in 2021, the company sold 1.101 billion broilers, a year-on-year increase of 4.76%, and 57.9789 million ducks, a year-on-year increase of 1.85%.
The company said that the poultry market has improved, and the company's poultry production has maintained a historically high level for many consecutive months. Although the breeding cost has been raised due to the continuous rise in the price of feed raw materials, the company's poultry business is profitable as a whole.
During the reporting period, according to the relevant provisions and requirements of the accounting standards for business enterprises, the company amortized the equity incentive expenses of about 500 million yuan, and preliminarily made an impairment provision of about 2.5 billion yuan for the current consumable biological assets and productive biological assets. At the same time, the company increased financing in response to the downturn of the industry, and the financial expenses increased significantly year-on-year.
lost 7 billion in the third quarter of last year
The reporter of financial investment daily found that the company's revenue has been growing steadily in recent years, but the profit level fluctuates greatly, and it is the first time that such a huge loss has occurred.
According to the data, from 2017 to 2020, Wens Foodstuff Group Co.Ltd(300498) operating revenue was 55.657 billion yuan, 57.244 billion yuan, 73.144 billion yuan and 74.939 billion yuan respectively, and the corresponding net profit attributable to parent company was 6.751 billion yuan, 3.957 billion yuan, 13.967 billion yuan and 7.426 billion yuan respectively.
In the first three quarters of last year, Wens Foodstuff Group Co.Ltd(300498) achieved an operating revenue of 46.576 billion yuan, a year-on-year decrease of 16.01%; The net profit loss was 9.701 billion yuan, a year-on-year decrease of 217.71%, of which the loss in the third quarter was as high as 7 billion yuan. judging from the performance forecast, Wens Foodstuff Group Co.Ltd(300498) lost money in the fourth quarter of last year or narrowed month on month.
Previously, "Zhumao" Muyuan Foods Co.Ltd(002714) also disclosed the performance forecast for 2021: the operating revenue is expected to be 77-80 billion yuan, and the net profit attributable to shareholders of listed companies is expected to be 6.5-8 billion yuan, a year-on-year decrease of 70.86% - 76.32%. Muyuan Foods Co.Ltd(002714) in the first three quarters of 2021, the operating revenue was 56.28 billion yuan and the net profit was 8.704 billion yuan.
In other words, Muyuan Foods Co.Ltd(002714) the loss in the fourth quarter of last year was between 704 million yuan and 2.204 billion yuan. Based on the loss of 822 million yuan in the third quarter, the loss in the fourth quarter expanded.
Under the background that changes in pig prices have a direct impact on performance, it is particularly important to control costs. Muyuan Foods Co.Ltd(002714) said in an interview that since 2021, the company's pig breeding cost has maintained a continuous downward trend. When Wens Foodstuff Group Co.Ltd(300498) was surveyed by the organization, it also said that at present, the breeding cost of Wens Foodstuff Group Co.Ltd(300498) has decreased month by month. With the clearing of purchased pig seedlings at a high price in the early stage, the breeding cost of the company has gradually returned to normal.
institutions continue to maintain the buy rating
Dongguan Securities pointed out that considering the peak consumption season in the fourth quarter of 2021, the pig price rebounded to a certain extent, or affected the length of the pig cycle to a certain extent. in the follow-up, we need to continue to pay attention to the important data such as the stock of fertile sows and the performance of pig enterprises, and look for appropriate layout opportunities.
The Pacific Securities Co.Ltd(601099) Securities said that at present, it is in the intensive release period of performance forecast, and many listed companies in the breeding sector have issued announcements of significant performance reduction or loss advance. The performance changes of breeding listed companies are basically in line with expectations. The current focus should also focus on the judgment of the speed of capacity removal and the reversal time point of the new cycle.
In the secondary market, the share prices of many pig enterprises, including Wens Foodstuff Group Co.Ltd(300498) , Muyuan Foods Co.Ltd(002714) , Tangrenshen Group Co.Ltd(002567) , Henan Shuanghui Investment & Development Co.Ltd(000895) , have risen since the fourth quarter of last year. Take Wens Foodstuff Group Co.Ltd(300498) as an example, since the company's share price hit a record low of 12.14 yuan on July 30 last year, it rebounded sharply and reached a high of 21.65 yuan on January 5, with a cumulative increase of nearly 80%. Or there is an expectation of performance loss, Wens Foodstuff Group Co.Ltd(300498) share price slightly corrected in the short term. As of the closing on January 24, the company's share price closed at 19.28 yuan.
At the same time, the huge loss did not affect the confidence of the institution in Wens Foodstuff Group Co.Ltd(300498) . on January 24, Guolian Securities Co.Ltd(601456) released a research report that it maintained the Wens Foodstuff Group Co.Ltd(300498) buy rating with a target price of 21 yuan.
