[Epoch Times October 18, 2021]China’s pig prices continue to bottom out, and the performance of listed pig breeding companies has been greatly affected, and the entire industry has entered a state of full loss. At present, 12 pig industry companies have a total loss of more than 20 billion yuan in the third quarter, and the latest stock prices of many pig industry concept stocks have been cut from their highs.
On the evening of Friday (15th), Wen’s, a major pig farmer in A-shares, announced the performance forecast for the first three quarters of this year. The company expects a loss of 9.25 billion to 9.75 billion yuan (RMB, the same below) from January to September this year, of which the third quarter The performance is expected to lose 6.75 billion yuan to 7.25 billion yuan.
The third quarter performance forecasts of the five major pig farmers in A shares have all been disclosed, and the third quarter performance of the pig industry company is terrible.
Muyuan, which has a market value of nearly 300 billion yuan, is expected to lose 500 million to 1 billion yuan in the third quarter. The share price of Muyuan shares has fallen 40% since its high for the year on February 19 to October 14. Based on this calculation, the company’s actual controllers, Qin Yinglin and Qian Ying, together hold 53.87% of the shares, and the market value has shrunk from the highest point by more than 110 billion yuan.
In addition, New Hope has a pre-loss of 2.58 billion to 2.98 billion yuan in the third quarter; Zhengbang Technology’s pre-loss of 5.52 billion to 6.52 billion yuan in the third quarter; and Tianbang’s pre-loss of 2.05 billion to 2.25 billion yuan in the third quarter.
Judging from the 16 pig industry companies that have disclosed their performance, only Dawnrays, Pengdu Agriculture and Animal Husbandry, Longda Meat, and Delis made slight profits in the third quarter, while the other 12 companies all suffered losses. In terms of the median loss, the total loss of the predicted performance company in the third quarter exceeded 20 billion yuan.
According to data from the China Animal Husbandry Information Network, as of October 8, the national average price of live pigs fell to below 11 yuan/kg, and the industry fell into a deep state of loss. This is the first time that the price of live pigs has fallen below 11 yuan/kg since June 2018, and the price has fallen by 70% since the beginning of the year.
Official media reported that due to extremely low prices of live pigs and high feed prices, farmers would lose 500 yuan for every pig sold over 200 kilograms.
As the price of pork continues to fall, the performance of related listed companies has been sluggish, and the stock price has continued to fall. “Securities Times” reported on October 17 that since 2020, the latest stock prices of 11 pig industry concept stocks including New Hope, Zhengbang Technology, Tianbang and Jinxinnong have all cut from their highs.
“China Fund News” quoted Huachuang Securities analysts as saying that the price of live pigs in all pig companies has been significantly lower than the full cost of breeding, and they are in a state of deep loss. Therefore, most companies have adopted strategies to reduce their slaughter weight to reduce losses. .
Editor in charge: Li Bing#
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