【Pig Cycle Stocks: Structural Opportunities in Animal Husbandry Makihara Shares】
In the first half of the year, in the context of high global inflation, China's inflation situation was relatively moderate, and the CPI rose to 2.7% year-on-year in July, up 0.2% month-on-month, and the food pull was obvious. In the second half of the year, the inflation situation can be summarized as follows: imported inflation weakens and structural inflation rises
[Breeze] International: Commodity prices have fallen, domestic PPI is expected to maintain a downward trend, the pressure on the corporate side has been reduced, and profits are expected to increase.
[Breeze] Domestic: A new round of pig cycle started, pig prices have risen by nearly 50% compared with the market low in March, and the CPI pork sub-price in July has changed by +20.2% compared with June-6%.
Investment opportunities: the overall weakness of large consumption, animal husbandry is expected to usher in a wave of structural market, taking the pig breeding leader Makihara shares as an example:
According to the 2022 semi-annual report released by the company, the company achieved operating income of 44.268 billion yuan in 2022H1, an increase of 6.57% over the previous year, and a net profit attributable to the owners of the parent company of -6.684 billion yuan, a decrease of 170.16% over the previous year.
[Breeze] But everyone should pay attention to the benefit of the pig price since the second quarter of the boom, Q2 profit significantly improved, the second quarter performance loss significantly narrowed to a loss of 1.503 billion yuan.
At the same time, Makihara to the downstream slaughter expansion, the integration of the industrial chain momentum is very strong, has been put into production of slaughtering capacity of 22 million heads / year, from the perspective of production capacity has become China's second largest slaughtering enterprises, the future with the company's slaughterhouse self-slaughter volume rise and the opening of downstream channels, capacity utilization rate is expected to gradually increase.
The above is for communication purposes only and does not constitute any investment advice
