Zhengbang Technology (002157) Company Comment: The significant increase in holding shareholder demonstrates long-term development confidence!
Event: Zhengbang Group, the company’s controlling shareholder, intends to increase its holdings of 20-40 million shares in the company through centralized bidding transactions in the next 6 months. There is no increase in the share price this time. According to the company’s stock price fluctuations and the overall capital marketTrend implementation plan to increase holdings.
The outstanding shareholding of the controlling shareholder demonstrates long-term development confidence and follows the closing price on December 6 (14.
53 yuan), Zhengbang Group needed to increase the holdings of 20-40 million shares of about 2 funds.
At present, under the influence of the African swine fever epidemic, the country ‘s productivity has greatly increased, the biology of pig breeding has increased, and a large number of small and medium-sized farmers have withdrawn from the industry; Group companies with strong epidemic prevention capabilities, financial strength, and advanced breeding technology have ushered in expansionGolden age.
As a domestic pig breeding leader, Zhengbang Technology is expected to enjoy the industry’s development dividends. The substantial increase in shareholding by the controlling shareholder has demonstrated its long-term confidence in Zhengbang Technology.
The non-plague situation is expected to lead to a 3-5 year long income cycle for the pig breeding industry. According to data from the Ministry of Agriculture and Rural Affairs, as of the end of October 2019, the number of fertile sows in the country will be reduced by 37.
8%, the pig inventory is reduced by 41 every year.
The significant reduction in pig production capacity has led to a significant increase in pig prices. Looking at the weekly average price, it reached 40 in October this year.
98 yuan / kg high.
We expect that the impact of the epidemic will persist for a long time, the recovery of the industry’s production capacity is expected to continue to be slow, and the supply of pigs is in a tight state for a long time, which will lead to the long-term maintenance of pig prices.Long profit cycle.
The company’s advantages in epidemic prevention and disease emerged, production capacity recovered rapidly, and operations continued to improve. From the perspective of production capacity, the company’s sow production capacity began to expand rapidly in the third quarter, and the productive biological assets reached 18 at the end of September.
1.3 billion, an increase of 44.
69%, the sow inventory reached 65.
30,000, of which 35 can breed sows.
20 thousand heads, the number of reserve sows reached 30.
It is estimated that by the end of December, the sow inventory will reach 1.2 million heads, of which 500,000 can be multiplied.
Judging from the company’s listing in November, 35 pigs were sold in November.
530,000 heads, an increase of 13 from the previous month.
09%, and the average weight of slaughter pigs reached 115 kg, an increase of 3 from the previous month.
84%, both in terms of the number and quality of listings, have seen positive improvements and continued to improve operations.
“Buy” rating Due to the recent sharp retreat of pig prices, we have reduced the company ‘s 19-year average listing price. At the same time, due to the rapid recovery of production capacity, we have increased the company ‘s sales volume in 2020-2021.-2021 net profit attributable to mother from 21.
50,000 yuan adjusted to 20.
6.6 billion, exceeding the average of 952% / 544% / 19%, corresponding to the closing market value of PE on December 杭州桑拿网 6 were 17 respectively.
3 times, the company is estimated to be low in the next year and continue to give a “buy” rating.
Risk warning: the price is lower than expected; the epidemic is catastrophic; the amount of listing is not up to expectations, and the progress of holdings is not up to expectations.