The expansion of The Great North's agricultural market is expected to sell 4.5 million tons of feed in 2014.

OA show ('918 '); at the end of October, the three quarter reports of major listed feed enterprises came out one after another, among which the report of dabiannong attracted special attentionIn the third quarter alone, the income and net profit of Dabei agriculture increased by 7% and 21.31% respectively year on yearFrom January to September, revenue increased by 18.4% year on year, and net profit decreased by 1.85% year on yearOverall, the performance of Dabei farmers is still satisfactoryMost of the securities institutions give Dabei agricultural shares "recommendation" levelAs an enterprise mainly engaged in pig feed sales, Dabei agriculture's performance can be divided into the first half and the second half of the year, which can be regarded as "four six" developmentIf it is divided by quarter, the most critical one should be the fourth quarterBased on the performance of Dabei agriculture in the first three quarters, Jingshu estimated that the business income of Dabei agriculture in 2014 was 19 billion yuan, including 4.5 million tons of feed salesHNF HNF Figure 1: in 2011-2014, as the largest premix enterprise in China, the comprehensive gross profit margin of HNF Dabei agriculture is much higher than that of other enterprises in the same industryAccording to the first half of the annual report, the comprehensive gross profit margin of Dabei agriculture is 20%To some extent, it depends on the advantages of Dabei's agricultural product structureAt the same time, Dabei agriculture is also the largest enterprise (16000 people) in the industryFrom Figure 1, we can see that the sales expenses and management expenses of Dabei agriculture have increased significantly after entering 2013The sales expense in 2013 was 1.576 billion yuan, up 70% from 927 million yuan in 2012The expansion of the sales force has become a direct guarantee for a 60% increase in the sales of agricultural feed in Dabei in 2013In 2013, the sales volume of agricultural feed in Dabei was 3.87 million tons, and the operating revenue was 16.66 billion, up 57% year on year in 2012In 2013, due to the slow development of macro-economy, multiple disasters in the downstream aquaculture industry, and the feed industry's entry into low profit and other factors, most feed enterprises chose the strategy of shrinking defenseDabei agriculture chose to expand against the market in 2013In terms of employment performance, it was quite effectiveHowever, in 2014, the speed of economic development slowed down, and the animal husbandry was the most challenging year, and the pace of agricultural expansion in Dabei slowed downFirst of all, in the sales team, it will increase from the original number to improve the ability of personnelSecondly, Dabei agriculture has slowed down in the construction of new feed factory projectsThirdly, Dabei farmers began to gradually control the sales and management costsHNF can see from Figure 1 that from 2013 to the third quarter of 2014, the operating revenue of Dabei agriculture increased with the growth of sales expenses, but the growth of net profit attributable to listed shareholders was not very obviousAnd in the third quarter of 2014, the sales expense was 485 million, down 1% on quarter, showing the first decline on quarter in the past four yearsAt the same time, the management cost is 290 million yuan, which is also the lowest growth rate in four yearsHNF is online at the end of October, a third of which has passed in the fourth quarterAs of October 29, the national market price of live pigs was 13.31 yuan / kg, which continued to be in a weak consolidationOne of the important reasons for the current price weakness of live pigs is that the consumption terminal has not recovered, and the farmers have a high enthusiasm to market in the near futureOn the whole, the pig market will recover in the fourth quarter, but the price is difficult to compare with the previous peak seasonPig market performance will drag down the sales of Dabei agricultural pig feedAccording to Jingshu, the total sales volume of Dabei agricultural feed in 2014 is about 4.5 million tons, and the total operating revenue is 19 billion yuanHNF (author: Jingshu)