Zhengbang Technology (002157): Growth of breeding pig productivity accelerated, epidemic prevention and control gradually stabilized
The company’s 2019Q3 revenue was 61.
900 million (+ 15%), net profit attributable to mother 3.
300 million (+ 44%), net profit after deduction to mother 3.
600 million (+ 54%).
2019Q1-3 return to mother net profit 0.
500 million (+ 43%), after deducting non 1.
700 million (+ 172%), the performance is in line with our budget forecast.
The epidemic situation has affected production in the third quarter to a certain extent, and pigs have begun to realise their profits.
In Q3, 1.4 million pigs were slaughtered, and the proportion of piglets purchased was about 15%. The epidemic situation affected the pig breeding business in the third quarter.
We estimate that 1.26 million pigs are slaughtered, the average selling price is about 20 yuan / kg, and the total cost is 17%.
3 yuan / kg, the average weight of the slaughter is about 98KG, the head profit is 265 yuan, and the fat pig is profit 3.
The number of piglets is 140,000, and the average profit is about 300 yuan. The piglets contribute 0.
400 million, the pig sector profit is about 3.
The feed sector is expected to earn 0.
About 200 million, the headquarters costs about 0.
Sow productivity has recovered rapidly, and the impact of the epidemic has gradually disappeared, clearly leading the industry.
The company has invested a lot of resources in biosafety prevention and control, personnel management implementation, performance evaluation, etc. At present, the epidemic prevention and control is in a gentle momentum, and the weight of the bar is increasing rapidly. We estimate that Q4 weighs more than 120KG.
Since Q2, the company has introduced a large number of seeds, which can accelerate the growth of sows.
Q3 fixed assets 93.
100 million (previously + 31%, month-on-month + 2%), 38 projects under construction.
500 million (+ 4% percent, flat month-on-month), and inventory 56.
700 million (previously + 54%, + 28% MoM).
Productive biological assets 18.
100 million (previously + 36%, + 45% MoM), the company announced that Q3 could breed 35 sows.
20,000 heads, reserve 30.
10,000 heads, can grow 500,000 heads at the end, reserve 700,000 heads.
It is estimated that there will be 6 million this year, and about 9-10 million heads next year.
Risk reminder: outbreak risk; the amount of slaughter is less than expected; pig price is less than expected.