In the first quarter, the loss of pig enterprises exceeded 7.7 billion [Shenlian Special Contract, Digital Pig Industry]
Recently, major listed pig companies have disclosed their reports for the first quarter of 2024, and 16 of the 23 listed pig companies have lost money. The pig market has continued to recover since the end of February, so that the profitability of most pig enterprises has improved, and more than 2/5 of the losses of pig enterprises are shrinking.
Affected by the downturn and the epidemic, *ST Zhengbang, Tianbang Food, Aonong Biotechnology, New Wufeng, Jinxinong, New Hope, Zhenghong Technology 7 listed pig companies have lost money for 3 consecutive years. Due to the uncertainty of the ability to continue operations, the shares of Tianbang and Aonong will be "ST" from May 6.
In the first quarter, 16 of the 23 listed pig companies lost money
According to the statistics of the new pig pie, in the first quarter of 2024, 16 of the 23 A-share listed pig enterprises deducted non-net profits in a state of loss, with a total loss of 7.775 billion yuan, and the remaining 7 made a profit. Compared with the first quarter of 2023, the non-net profit deduction of 23 pig enterprises is that 10 losses have narrowed, 2 have turned from losses to profits, 3 profits have risen, 2 profits have declined, and another 6 losses have expanded, of which the first three types of enterprises account for 65%, indicating that although pig prices are still relatively low, the profitability of most listed pig companies has improved this year.
This is first due to the decline in the cost of pig raising by pig enterprises, for example, the complete cost of Shennong Group, which has turned from a loss to a profit, has dropped from 16.2+ yuan/kg in the first quarter of 2023 to 14.5+ yuan/kg in the first quarter of 2024. The second is that this year's pig prices have bottomed out in late February and began to fluctuate upward, and listed pig companies increased the number of pigs slaughtered in March, such as Wen's March slaughter volume reached 2.6205 million, up 36.34% month-on-month, and its single pig has basically achieved breakeven that month.
Looking back on 2023, it will be a miserable year, only 4 of the 23 listed pig companies rely on businesses other than pig breeding to achieve profits, and the remaining 19 are all loss-making, and even Muyuan shares have suffered their first loss since their listing in 2014.
In 2021, domestic pig production capacity recovered until it was excessive, bringing a long-term low pig price, and in 2023, the epidemic will make a comeback. The double blow of the market and the epidemic, "raising pigs to get rich" is not an easy thing. *ST Zhengbang, Tianbang Food, Aonong Biotechnology, New Wufeng, Jinxinong, New Hope, Zhenghong Technology 7 listed pig enterprises, deducting non-net profit has been losing money for 3 consecutive years.
Far water is difficult to quench thirst near and near
Aonong and Tianbang stocks will be "ST" The asset-liability ratio can reflect the debt level and risk level of pig enterprises. A high debt ratio will make it more difficult for enterprises to raise funds and increase costs. When it reaches or exceeds 100%, it indicates that the company is insolvent.
According to the statistics of Xinzhupai, as of the end of the first quarter of 2024, the total liabilities of the 23 listed pig enterprises were 449.1 billion yuan, a year-on-year decrease of 4.09%, and the average asset-liability ratio was 62.15%, a year-on-year decrease of 2.47 percentage points. Compared with the same period in 2023, the majority of enterprises with increased debt ratios are still the majority, with a total of 15 companies, accounting for 65.22%. It means that the continuous loss of operation has led to a decline in the solvency of pig enterprises to a certain extent.
The debt ratio greater than 62% is regarded as high debt, and there are 12 pig enterprises that meet this condition, accounting for more than half of the total. Among them, Aonong Biotech replaced *ST Zhengbang and became the only insolvent listed pig company, and the debt ratio of Tianbang Food was also higher than 80%.
According to the announcement of the listed company, Aonong Biotechnology and Tianbang Food, two listed pig companies have entered a state of reorganization, due to the negative non-net profit in the past three years, and the uncertainty of the ability to continue operations, its shares will be subject to risk warning from May 6, 2024, and the stock abbreviation will be changed to "*ST Aonong" and "ST Tianbang" respectively. Recently, the pig market has gradually recovered, as if it is difficult to quench the thirst of distant water.
In addition, under the policy guidance of tightening financing, it is difficult for listed pig enterprises to successfully pass the fixed increase. This may be worthy of the attention of all listed pig companies, especially those with tight capital chains.
Raising pigs should be done within your means
The slaughter of the three major pig enterprises in the first quarter decreased by more than 30% In 2024, major enterprises have shifted from quantitative expansion to qualitative development stage, trying to control the amount of slaughter and high-quality development. Judging from the changes in the number of pigs slaughtered, the main focus is a "do what you can".
In the first quarter, the number of pigs slaughtered by Zhenghong Technology, Aonong Biotechnology and *ST Zhengbang fell by more than 30% year-on-year, which is the result of the shortage of capital chain they have experienced or are experiencing and actively reducing the scale. Shennong Group slaughtered 496,800 pigs in the first quarter, a year-on-year increase of more than 40%, which seems to be a radical expansion, but in fact, its slaughter volume has just exceeded one million in 2023, and the asset-liability ratio is also the lowest level among listed pig enterprises, and it is expected that the slaughter volume will reach 2.5 million in 2024.
Seven listed pig enterprises deducted non-net profits for 3 consecutive years of losses, except for the new Wufeng, the rest are once "unlimited" feed enterprises. In addition to the impact of the epidemic, it is blindness that has brought "scarring". And pig farming has always been about endurance and technology rather than scale. At present, many pig enterprises, including them, are adjusting the production capacity structure, optimizing the production area, eliminating backward production capacity, replacing the seed source, and preparing to go. Tianbang shrinks Shandong's fattening capacity, and the production capacity continues to adjust to the southern breeding region; Haid Group's pig business implements the "ramming pile change" plan to hit the full cost 7.0 target...... They all hope to have the last laugh.
· END·
【WeChat Editor】Meng Xuan
[Content source] Yao Weipeng, Liu Weiheng
【Data Mapping】Zhou Shihong
【Content Review】Li Dan scan the QR code below to join the new pig pie pig data exchange group to get more data and information
New Pig Pie Featured Reading:
Suddenly! Tianbang Food applied for pre-reorganization! The "pig building" began to collapse, who is next?
420 million copies!2023 Blue Ear Seedlings TOP10 list: Boehringer is far ahead, Youben is second, Nannong Hi-Tech is third, and the share of inactivated seedlings is increasing year by year
The country only needs 35.88 million sows that can reproduce, and the new version of the pig production capacity control plan is worth paying attention to
TOP10 slaughtered 16.52 million heads!21 groups in Guangdong to carry out the "company + farmer" pig breeding model, fattening or into a scarce resource
200 million heads! 2023 TOP20 pig enterprises slaughter ranking: 63.82 million heads of Muyuan, 13.52 million twins, superstars, Tianbang, and Tang Renshen increased by more than 60%.
In 2023, there will be 118 pig farms that can reproduce 10,000 sows, and the total number of sows will be 11.55 million heads, a decrease of 2% [with list]
