onlineroulettebonus| Prices rebound and costs fall. Leading pig companies reach break-even point

Zhang Yifan, a reporter from the Securities Times

Pig prices are picking up, costs are falling, New Hope, Wen's shares and other head pig enterprises have achieved a monthly break-even, and the industry as a whole is returning to the breeding break-even line. Relevant business people said that the follow-up will be to ensure profitability as the primary consideration, to achieve high-quality development of the enterprise.

According to the April pig sales report released by New Hope on May 7, the average sales price of commercial pigs reached 15% in that month.Onlineroulettebonus.13 yuan / kg, an increase of 5% over the previous monthOnlineroulettebonus.51%, up 6.55% over the same period last year. Judging from the consistent trend, the average sales price of New Hope commercial pigs has achieved positive growth for four consecutive months, and the average sales price in April this year has increased by nearly 16% compared with 13.06 yuan / kg in December 2023.

"at present, the company as a whole has turned to break even in April.OnlineroulettebonusIs a very good signal, especially the company's backup sow conversion cost, there is still a rapid decline in the future. " Chen Xingyi, vice president of New Hope, said. He expects the improvement in production and operation to be fully reflected after the second quarter.

Why the break-even of a single month is a "very good signal"Onlineroulettebonus?

It should be noted that in 2023, due to the pig price for a long time lower than the industry-wide cost line, the pig farming industry is in an overall loss. According to Wind statistics, the average net profit of the 10 enterprises in Shenwan pig farming industry is 1 billion yuan, and the larger the scale of sales, the larger the scale of loss. In 2023, the shares of Muyuan and Wen of the head Pig Enterprise lost 4.26 billion yuan and 6.39 billion yuan respectively.

Although New Hope handed over a net profit of 249 million yuan in 2023, this is related to the company's investment income of more than 6.6 billion yuan from the transfer of controlling shares in industries such as white-feathered poultry and food last year. In fact, the net profit of the new hope deduction is 4.608 billion yuan, and the overall gross profit of the company's pig industry is-7.25%. In the first quarter of this year, the new hope performance turned to a loss again, and the net profit of the current period was a loss of 1.93 billion yuan, of which the pig industry lost 1.79 billion yuan.

According to Chen Xingyi, New Hope produced a total of 4.56 million live pigs in the first quarter, including 3.94 million fat pigs and 620000 piglets. The company's net profit and loss of nearly 400 million in the first quarter is due to the one-time loss and investment brought about by the frequent epidemic in the north, the long-term high cost, and the active adjustment and optimization. "the impact has been diminishing since April, and it was almost gone in May." Chen Xingyi stressed.

At the same time, in the field line of normal operation, as the influence of non-plague fades after January and February, the cost of fat pigs in the operation line of New Hope has dropped significantly. It is reported that the cost of fattening pigs in New Hope was 15.8 yuan / kg in January and has dropped to 14.7 yuan / kg in April, which is lower than the average sales price of commercial pigs in that month. Chen Xingyi estimates that by December this year, the cost of running fattening pigs on the farm line will be reduced to 14.2 yuan / kg to 14.3 yuan / kg.

In addition, New Hope has also implemented cost reduction and efficiency measures at the headquarters level, including headquarters costs and financial costs, labor compensation, equity incentives and other miscellaneous measures. Chen Xingyi expects that starting from the second quarter, there will be a drop of about 300 million in related expenses every quarter, which will support the company's current operating condition.

"in the first quarter of 2024, the company gradually walked out of the bottom. In April, at the level of 15.1 yuan / kg of pig price, the company achieved the overall monthly profit. The various costs of raising pigs are also decreasing rapidly. Judging from the current operating effect and the decline in costs, the active adjustment we have done before is very effective. " Chen Xingyi concluded.

The situation of new hope is more representative in the industry. Judging from the recent disclosure of sales briefs, under the warming of pig prices and the continuous efforts of enterprises to reduce costs, the sales prices of leading pig enterprises in April are generally above and below the break-even line.

According to the April pig sales report disclosed by Muyuan shares, the average sales price of commodity pigs in Muyuan shares in that month was 14.8 yuan / kg, up 3.9 percent from the previous month. Muyuan shares have disclosed that the company's full cost has dropped to 15.1 yuan / kg in March and hopes to drop to less than 14 yuan / kg in the third or fourth quarter of this year, with an annual average cost target of 14.5 yuan / kg. According to Muyuan shares, the cost decline comes from the improvement in production performance, the decline in feed prices and the decline in amortization during the period brought about by the increase in the volume of production.

The average selling price of Wen's shares in April was 15.18 yuan / kg, an increase of 3.1% over the previous month. The company's comprehensive pig breeding cost in March was about 14.8 yuan / kg. Wen's shares stressed that due to the good quality of the company's pigs and the distribution of production capacity in high-priced areas, the company's products are generally sold at a better price than their peers, and the company's single pig basically broke even in March. Of the 16 pig-raising regional units, 9 have made profits.

The Ministry of Agriculture and Village has not updated the information on pig products for April. In March, the price ratio of pig to grain calculated by the Ministry of Agriculture and Village was 6.04. In that month, the net profit of each free-range pig was 70 yuan, and the net profit of each pig raised on a large scale reached 66 yuan.

Pig prices are gradually picking up, costs are gradually falling, and restoring profitability is the common goal of the industry. Chen Xingyi said that in this year and for some time in the future, the main goal of the company is to restore the profitability of production and operation, reduce the asset-liability ratio and return shareholders. Wen's shares also said that for some time in the future, the pig industry may be in a state of weak balance and low profit, and the company will pay more attention to cost control and take profit as the primary consideration to achieve high-quality development.