Zhengbang Technology (002157) 2018 Annual Report Review: Expansion of Hog Production Capacity Boosts 2019 Performance
Event: The company released the 2018 annual report and the 2019 first quarter report on the evening of April 19.
The company achieved revenue of 221 in FY2018.
1.3 billion, an annual increase of 7.
27%; net profit attributable to mothers1.
$ 9.3 billion, 63 years ago.
The company achieved revenue of 51 in the first quarter of 2019.
9.4 billion, an annual increase of 4.
74%; net profit attributable to mother is -4.
1.4 billion US dollars, 743 the previous ten years.
Opinion: Subject to the sluggish market of pig prices, the gross 北京夜网 profit margin has slightly decreased.
The company’s consolidated gross profit margin decreased slightly in 20181.
40 digits, the hog breeding market in 2018 in the main years continued to decline.
In 2018, the gross profit margin of feed business increased slightly, among which the gross profit margin of pig feed, poultry feed and breeding business reached 12.
15% and 7.
93%, rising by 0 each year.
35 averages, 0.
20 digits and -6.
48 singles; subject to the replacement of pig prices in 2018, the gross profit of the breeding business is as prominent as possible23.
Product optimization of feed business and enhanced profitability.
In the reporting year, the company’s pig feed sales share increased from 46% last year to 55% this year, and the comprehensive gross profit margin of the feed business increased from 7 last year.
31% rose to 9 this year.
Profitability of feed business has been improved.
Pig and poultry feed sales reached 263.
65 free radicals and 188.
37 inches, an increase of 6 per year.
71% and -27.
It is expected that the continuous increase in the number of pigs produced by the company will increase the company’s sales of pig feed. In 2019, the sales of pig and poultry feed will increase by 30% and 10%.
The “company + farmer / farmer” model continues to advance, with production capacity expanding and deepening large-scale farmers in the entire industrial chain.
The company’s slaughtering volume in 2018 reached 553.
99 million heads, an increase of 61 in ten years.
We expect the company to benefit from the “company + farmers / farmers” asset-light model production capacity to resume rapid expansion in 2019. It is expected that the number of listings in 2019 will reach 7.5 million heads, which will continue to grow35.38%.
1Q19 company gradually listed 168.
760,000 heads, an increase of 58 in ten years.
88%, the expansion trend of production capacity is determined.
Investment suggestion: downgrade to cautious recommendation.
We believe that due to the swine fever production in Africa, de-swine pig prices have entered an upward trajectory, the company’s rapid increase in production capacity and overlapping pig price increases will drive the company’s highly resilient growth in 2019.
We expect the company’s slaughter volume in 2019 and 2020 to be 7.5 million and 9.75 million, respectively, and the average selling price of hogs will be 16.
0 yuan / kg and 18.
0 yuan / kg.
The complete cost of pig farming is 13 respectively.
8 yuan / kg and 13.
5 yuan / kg net profit attributable to mothers from 2019 to 202023.
1.3 billion and 54.
$ 7.5 billion with a budget gain of zero.
99 yuan and 2.
26 yuan corresponds to PE assessment 20 times and 8 times.
Considering that the company has achieved significant growth close to the beginning of the year.
6 times, expectation has fully reflected the target performance expectations, we downgrade to cautious recommendation.
Risk reminders: The prices of downstream 成都桑拿网 aquaculture products are sluggish; the outbreak of large animal diseases; the prices of commodity raw materials have increased significantly.