300 billion "Pigmao" big move!

Under the downward cycle of pig prices, "Pigweed" can't stand it
.

In the evening of October 18, Muyuan issued its third quarterly report.
In the first three quarters, the company’s main operating income was 56.
282 billion yuan, a year-on-year increase of 43.
71%; net profit attributable to the parent was 8.
704 billion yuan, a year-on-year decrease of 58.
53%
.

It is worth noting that, in the difficult stage of the performance turning from profit to loss and the stock price continued to decline, the company plans to raise funds not exceeding 6 billion yuan from the controlling shareholder Muyuan Group, which will all be used to supplement liquidity after deducting issuance costs
.

Loss of 822 million yuan in the third quarterWdb China Feed Industry Information Network-Based on feed, serving animal husbandry

The third quarter report released by Muyuan on the evening of the 18th showed that the company's third-quarter operating income was approximately 14.
744 billion yuan, a decrease of 18.
68% from the same period last year, and the net profit attributable to shareholders of listed companies was approximately 822 million yuan, a decrease from the same period last year.
108.
05%, the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was approximately -785 million yuan, a decrease of 107.
74% over the same period of the previous year, and the basic earnings per share was -0.
16 yuan/share, a decrease of 108.
08% over the same period of the previous yearWdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　In the first three quarters, the company achieved a total of 56.
282 billion yuan in main operating income, a year-on-year increase of 43.
71%; net profit attributable to the parent was 8.
704 billion yuan, a year-on-year decrease of 58.
53%
.

Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Behind the poor performance of Muyuan shares is the decline in profits of the entire pig industry
.

　　Pork prices have changed from bull to bear.
From the perspective of pork wholesale prices, this year’s pig price rose to a peak of 47.
64 yuan/kg in January, and then fell in a landslide fashion
.

　　As of October 15, the farming profit of purchased piglets was -716.
64 yuan/head, a year-on-year decrease of 1118.
52 yuan/head, and the profit of self-breeding and self-raising pigs was -601.
05 yuan/head, a year-on-year decrease of 2408.
37 yuan/head
.

　　Therefore, in addition to Muyuan shares, the profits of other breeding companies have also suffered a huge impact
.

　　"Compared with the same period last year, the sales price of live pigs during the reporting period dropped sharply, combined with the increase in the price of feed ingredients, and the increase in the cost of live pig breeding, which led to the loss of the pig industry
.

　　New Hope stated that in addition, in accordance with the requirements of corporate accounting standards and prudence, the company has conducted impairment tests on the current inventory of consumable biological assets according to the principle of the lower of the cost and the net realizable value, and has made provisions for inventory depreciation
.

　　Pig prices have rebounded recently.
As of last Friday, the average price of slaughtered pigs outside the country was 12.
84 yuan/kg, an increase of 21.
25% from the previous week
.

　　However, some analysts are not very optimistic
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　"After adjustments since February this year, the average market value of the pig breeding sector has dropped to a historically low level, and the allocation value has gradually become prominent
.
Considering the continued expansion of breeding losses, the stock of breeding sows has turned negative for the first time in July.
, Which means that the supply of live pigs will increase month by month until May next year, and the continued rise of pig prices lacks fundamental support,” said Zhou Sha, an analyst at West China Securities.
Therefore, the current round of pig breeding stocks’ rise is characterized as a rebound rather than a reversal
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Major shareholder 6 billion bargain-huntingWdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　At the same time that the third quarterly report of Muyuan shares was released, it also announced a fixed increase plan.
The company plans to privately issue no more than 149,216,612 shares (including the number), all of which are subscribed by the company’s controlling shareholder Muyuan Group in cash, and the total amount of funds raised shall not exceed 60.
100 million yuan
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Muyuan shares stated that this non-public issuance of shares can optimize the financial structure, reduce financial risks, strengthen the company’s strength, and meet future business development needs.
The company’s controlling shareholder Muyuan Group has fully subscribed for the company’s non-public offering of shares, which fully demonstrates the company The determination of the controlling shareholder and actual controller to support the company and the firm confidence in the company's future development are conducive to ensuring the company's sustained, stable and healthy development, and it is also conducive to sending positive signals to the market and small and medium shareholders
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　In fact, the fixed increase of Muyuan's shares is indeed multi-purpose
.
From the perspective of stock prices, with the correction of pork prices, the stock prices of pig companies have been in a downturn for many days, falling from the high of 92.
1 yuan at the beginning of the year to the latest 56.
01 yuan, a drop of nearly 40%
.
The current market value is close to 300 billion yuan
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　The fixed price increase of Muyuan Group is more attractive.
According to the fixed increase plan, the price of this fixed increase is only RMB 40.
21 per share
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　"On the whole, although the pig price will continue at the bottom for some time
.
However, the average market value of pig breeding stocks has fallen to a historically low level, and the sector has ushered in the left-side layout window period
.
" Zhou Sha said
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　From another perspective, the overall capital demand of pig raising companies is getting higher and higher.
Muyuan said in the fixed increase announcement that at the end of 2018, the end of 2019, the end of 2020 and the end of September 2021, the company’s asset-liability ratio was 54.
07%.
, 40.
04%, 46.
09% and 57.
77%.
With the continuous investment in the company's capacity expansion and the gradual increase in the scale of operations, the company's asset-liability ratio has shown a certain upward trend since 2019
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　In this context, companies with capital advantages can better survive the cold winter
.
Fan Jinsong, an analyst at Zhongtai Securities, believes that many of the leading pig companies suffered two consecutive quarters of losses at the beginning of the year due to business strategy errors or breeding capabilities, and the vast majority of listed pig companies’ losses came from the third quarter.
At the beginning, the performance report of pig companies expected in the next two weeks is equally optimistic.
From this week’s stock split has emerged, funds are priced based on the company’s viability.
There are pessimistic views that companies that are under pressure from cash may be dumped at the end of the year.

.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　In other words, companies can survive the current predicament to gain more market recognition
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Muyuan shares also stated that the funds raised through this non-public issuance of shares will be used to supplement liquidity, which will effectively improve the company's asset-liability structure, enhance financial stability, and prevent financial risks
.
At the same time, the company's net assets will be greatly improved, and the asset structure will be more stable, which will help enhance the company's ability to resist risks, improve the company's solvency and subsequent financing capabilities, and ensure the company's continuous, stable and healthy development.

.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

 　　Under the downward cycle of pig prices, "Pigweed" can't stand it
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　In the evening of October 18, Muyuan issued its third quarterly report.
In the first three quarters, the company’s main operating income was 56.
282 billion yuan, a year-on-year increase of 43.
71%; net profit attributable to the parent was 8.
704 billion yuan, a year-on-year decrease of 58.
53%
.
Among them, the main operating income in the third quarter was 14.
744 billion yuan, a year-on-year decrease of 18.
68%; the net profit attributable to the parent in a single quarter was 822 million yuan, a year-on-year decrease of 108.
05%
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　It is worth noting that, in the difficult stage of the performance turning from profit to loss and the stock price continued to decline, the company plans to raise funds not exceeding 6 billion yuan from the controlling shareholder Muyuan Group, which will all be used to supplement liquidity after deducting issuance costs
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Loss of 822 million yuan in the third quarterWdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　The third quarter report released by Muyuan on the evening of the 18th showed that the company's third-quarter operating income was approximately 14.
744 billion yuan, a decrease of 18.
68% from the same period last year, and the net profit attributable to shareholders of listed companies was approximately 822 million yuan, a decrease from the same period last year.
108.
05%, the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was approximately -785 million yuan, a decrease of 107.
74% over the same period of the previous year, and the basic earnings per share was -0.
16 yuan/share, a decrease of 108.
08% over the same period of the previous yearWdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　In the first three quarters, the company achieved a total of 56.
282 billion yuan in main operating income, a year-on-year increase of 43.
71%; net profit attributable to the parent was 8.
704 billion yuan, a year-on-year decrease of 58.
53%
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Behind the poor performance of Muyuan shares is the decline in profits of the entire pig industry
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Pork prices have changed from bull to bear.
From the perspective of pork wholesale prices, this year’s pig price rose to a peak of 47.
64 yuan/kg in January, and then fell in a landslide fashion
.
As of October 15th, the wholesale price of pork has fallen to 18.
56 yuan/kg, which has been cut from the beginning of this year
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　As of October 15, the farming profit of purchased piglets was -716.
64 yuan/head, a year-on-year decrease of 1118.
52 yuan/head, and the profit of self-breeding and self-raising pigs was -601.
05 yuan/head, a year-on-year decrease of 2408.
37 yuan/head
.
The current loss of pig breeding has reached the highest level in history
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Therefore, in addition to Muyuan shares, the profits of other breeding companies have also suffered a huge impact
.
Wen's shares are expected to lose 9.
25-9.
75 billion yuan, turning losses year-on-year; Zhengbang Technology is expected to lose 6.
95-7.
950 billion yuan, turning losses year-on-year; New Hope is expected to lose 5.
995-6.
395 billion yuan, turning losses year-on-year; Tianbang shares are expected to lose 27- 2.
9 billion yuan, a year-on-year turnaround
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　"Compared with the same period last year, the sales price of live pigs during the reporting period dropped sharply, combined with the increase in the price of feed ingredients, and the increase in the cost of live pig breeding, which led to the loss of the pig industry
.
The loss is also one of the reasons for the performance loss in this period
.
" New Hope said in the previous performance forecast
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　New Hope stated that in addition, in accordance with the requirements of corporate accounting standards and prudence, the company has conducted impairment tests on the current inventory of consumable biological assets according to the principle of the lower of the cost and the net realizable value, and has made provisions for inventory depreciation
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Pig prices have rebounded recently.
As of last Friday, the average price of slaughtered pigs outside the country was 12.
84 yuan/kg, an increase of 21.
25% from the previous week
.
The average price of three yuan piglets for slaughter was 22.
17 yuan/kg, which was 3.
40% higher than before the holiday
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　However, some analysts are not very optimistic
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　"After adjustments since February this year, the average market value of the pig breeding sector has dropped to a historically low level, and the allocation value has gradually become prominent
.
Considering the continued expansion of breeding losses, the stock of breeding sows has turned negative for the first time in July.
, Which means that the supply of live pigs will increase month by month until May next year, and the continued rise of pig prices lacks fundamental support,” said Zhou Sha, an analyst at West China Securities.
Therefore, the current round of pig breeding stocks’ rise is characterized as a rebound rather than a reversal
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Major shareholder 6 billion bargain-huntingWdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　At the same time that the third quarterly report of Muyuan shares was released, it also announced a fixed increase plan.
The company plans to privately issue no more than 149,216,612 shares (including the number), all of which are subscribed by the company’s controlling shareholder Muyuan Group in cash, and the total amount of funds raised shall not exceed 60.
100 million yuan
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Muyuan shares stated that this non-public issuance of shares can optimize the financial structure, reduce financial risks, strengthen the company’s strength, and meet future business development needs.
The company’s controlling shareholder Muyuan Group has fully subscribed for the company’s non-public offering of shares, which fully demonstrates the company The determination of the controlling shareholder and actual controller to support the company and the firm confidence in the company's future development are conducive to ensuring the company's sustained, stable and healthy development, and it is also conducive to sending positive signals to the market and small and medium shareholders
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　In fact, the fixed increase of Muyuan's shares is indeed multi-purpose
.
From the perspective of stock prices, with the correction of pork prices, the stock prices of pig companies have been in a downturn for many days, falling from the high of 92.
1 yuan at the beginning of the year to the latest 56.
01 yuan, a drop of nearly 40%
.
The current market value is close to 300 billion yuan
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　The fixed price increase of Muyuan Group is more attractive.
According to the fixed increase plan, the price of this fixed increase is only RMB 40.
21 per share
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　"On the whole, although the pig price will continue at the bottom for some time
.
However, the average market value of pig breeding stocks has fallen to a historically low level, and the sector has ushered in the left-side layout window period
.
" Zhou Sha said
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　From another perspective, the overall capital demand of pig raising companies is getting higher and higher.
Muyuan said in the fixed increase announcement that at the end of 2018, the end of 2019, the end of 2020 and the end of September 2021, the company’s asset-liability ratio was 54.
07%.
, 40.
04%, 46.
09% and 57.
77%.
With the continuous investment in the company's capacity expansion and the gradual increase in the scale of operations, the company's asset-liability ratio has shown a certain upward trend since 2019
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　In this context, companies with capital advantages can better survive the cold winter
.
Fan Jinsong, an analyst at Zhongtai Securities, believes that many of the leading pig companies suffered two consecutive quarters of losses at the beginning of the year due to business strategy errors or breeding capabilities, and the vast majority of listed pig companies’ losses came from the third quarter.
At the beginning, the performance report of pig companies expected in the next two weeks is equally optimistic.
From this week’s stock split has emerged, funds are priced based on the company’s viability.
There are pessimistic views that companies that are under pressure from cash may be dumped at the end of the year.

.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　In other words, companies can survive the current predicament to gain more market recognition
.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Muyuan shares also stated that the funds raised through this non-public issuance of shares will be used to supplement liquidity, which will effectively improve the company's asset-liability structure, enhance financial stability, and prevent financial risks
.
At the same time, the company's net assets will be greatly improved, and the asset structure will be more stable, which will help enhance the company's ability to resist risks, improve the company's solvency and subsequent financing capabilities, and ensure the company's continuous, stable and healthy development.

.
Wdb China Feed Industry Information Network-Based on feed, serving animal husbandry