Evaporated 800 billion! The market value of 20 listed pig enterprises has shrunk by more than 40 percent, and only Muyuan, Wen's, and Tongwei remain in 100 billion agricultural and animal husbandry enterprises
Listing is like "carp jumping over the dragon gate", jumping over, the company ushered in a new stage of development. Up to now, there are a total of 60 listed animal husbandry enterprises in mainland China, of which the number of the main boards of the Shenzhen Stock Exchange and the Shanghai Stock Exchange is the highest, accounting for 77%, and the number of breeding enterprises in the main business type accounts for the highest proportion of 46.
With Dawnrays, Shennong Group, and Dekang Agriculture and Animal Husbandry successively landing in the capital market from 2020 to 2023, there are more than 20 listed pig breeding companies in China. The enterprises represented by Muyuan and Wen's have maintained a market value of more than 100 billion yuan from the fanatical pursuit of capital to the rational development period.
The market value of Muyuan, Wen's and Tongwei remained 100 billion
In 2024, there will be 2 giants in the pig industry with a market value of 100 billion yuan and a market value of 100 billion yuan, and the companies with a market value of 100 billion yuan are well-known leading companies in each industry field. According to the China Association of Public Companies, by the end of 2023, there were 5,346 listed companies in the domestic stock market, of which only 101 companies with a market value of more than 100 billion yuan, accounting for less than 2%.
As of the end of the first quarter of 2024, most of the 60 listed animal husbandry companies have a market value of 100-30 billion yuan, and only three companies, Muyuan shares, Wen's shares and Tongwei shares, have a market value of more than 100 billion yuan. Shuanghui Development ranked fourth with a market value of more than 90 billion yuan, and Haid Group's market value ranked fifth.
Li Rui, chief investment officer of CCB Equity, said when describing the characteristics of enterprises with a market value of 100 billion yuan, enterprises with a market value of 100 billion yuan rely on the development model of endogenous growth, and the main business of the enterprise is very prominent and leading, and its main business has a strong ability to adsorb and empower upstream and downstream.
The three agricultural and animal husbandry enterprises of Muyuan shares, Wen's shares and Tongwei shares obviously meet this characteristic. Since its listing on the main board of the Shenzhen Stock Exchange in 2014, Muyuan has gradually become the world's largest pig breeding company, with more than 60 million pigs slaughtered in 2022, and its operating income has also exceeded 100 billion yuan in the same year. Wen's is a leading enterprise in the field of livestock and poultry breeding, and also has the vision of creating "100 billion" revenue, relying on the increase of pigs and broilers, and is expected to achieve the goal in 2024.
60 listed animal husbandry enterprises
There are a total of 46 companies on the main board of the two major exchanges, accounting for 77%, for agricultural enterprises, it is more difficult to go public, one is that agriculture depends on the sky to eat, and the performance fluctuates greatly. Second, there are not many channels for listing, taking the current five major listed sectors of A-shares as an example, the first industry that the Shenzhen Stock Exchange's GEM does not support the declaration in principle is agriculture, forestry, animal husbandry and fishery, and the Science and Technology Innovation Board of the Shanghai Stock Exchange also has high requirements for the scientific and technological innovation attributes of enterprises, so agricultural companies can only try their luck on the main board and the Beijing Stock Exchange if they want to be listed on the A-share market.
In addition, the merger of the main board and the small and medium-sized board of the Shenzhen Stock Exchange in 2021 has formed a situation in which today's agricultural listed companies are mainly on the main board. According to incomplete statistics from Xinzhupai, as of April 23, 2024, there are a total of 60 listed animal husbandry companies in mainland China (only in the fields of pigs, poultry, animal protection, and feed), of which 46 are distributed on the main boards of the Shenzhen Stock Exchange and the Shanghai Stock Exchange, accounting for 77% of the total. Since Dekang Agriculture and Animal Husbandry landed in the capital market in 2023, the number of listed companies on the main board of the Hong Kong Stock Exchange has increased to 3. The number of companies on the Science and Technology Innovation Board of the Shanghai Stock Exchange is the smallest, with only 2 companies in Shenlian Biotechnology and Keqian Biotech.
According to the statistics of the new pig pie, among the 60 listed companies, most of them are breeding enterprises, and a total of 37 listed companies are involved in breeding, accounting for 62%. followed by 11 listed companies involved in biological products. From 2020 to 2023, there are no less than 7 pig companies that try to raise funds to expand the scale of pig breeding through IPO listing, and finally Dongrui shares, Shennong Group, and Dekang agriculture and animal husbandry got their wish.
20 of the 24 listed pig companies have shrunk by more than 40% in market value
Doing a good job in management is more important than chasing the market, with A-share listed pig enterprises as the object of analysis, most companies ushered in the highest point of market value during the 2019-2021 period, and the market value of Muyuan once rose to 477.059 billion yuan. As of the end of March 2024, 20 of the 24 listed pig companies have seen their market value drop by more than 40% from the peak, and the 4 companies with a market value of 100 billion yuan in the pig industry have decreased to 2 today.
The general decline in the market value of listed pig enterprises means that the attitude of the capital market towards the pig industry has shifted from the fanatical pursuit of the past to the rationality of today. In March 2024, the People's Bank of China said that the People's Bank of China will pay more attention to improving the efficiency of capital use, guide financial institutions to scientifically assess risks, and constrain the financing supply of industries with excess capacity. Under the influence of relevant tightening policies and measures, even listed companies may be restricted in financing. Market capitalization is an important indicator to measure the overall value of a listed company. Companies with good operating performance and good quality are like high-rise buildings relying on a solid "framework and foundation" to stand tall and easy to cash in the capital market, which is also the reason why the market value of companies such as Muyuan and Wen's ranks in the upper reaches of the industry. Conversely, mediocre listed companies, although they have received a high premium in market value when the industry's bull market arrives, are difficult to sustain for a long time. Therefore, for pig enterprises, you can expect a good market, but perhaps it is more important to sink down to cultivate internal skills and do a solid job in management.
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【WeChat Editor】Meng Xuan
【Content source】Liu Weiheng
【Data Mapping】Chen Shumei
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