pubpoker| *ST Zhengbang sprinted to "take off the hat" and established a project team to promote production! Only 180,000 pigs were sold in April, and piglet vaccination increased

May 10thPubpoker, * ST Zhengbang (002157Pubpoker.SZ) conduct the 2023 online performance presentation meeting to communicate with investors on issues of concern. Since the successful restructuring of Zhengbang and Twins Group, investors have been very concerned about the operation of * ST Zhengbang, the way the twins' assets are injected, and the progress of Zhengbang's "star removal and hat removal".

In parallel with the disclosure of the 2023 annual report, * ST Zhengbang announced that the company passed a "motion on applying for cancellation of the risk warning of delisting of the company's stock trading" on April 26, 2024, and applied to the Shenzhen Stock Exchange on April 30 to revoke the risk warning of delisting due to compulsory delisting in the financial category.

For matters related to "taking off stars and taking off hats", * ST Zhengbang said that there is still uncertainty as to whether the application will eventually be approved by the Shenzhen Stock Exchange. please pay attention to the investment risks and the company has no buyback plan for the time being.

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A project team has been set up to promote the resumption of work and production.

According to the 2023 annual report, * ST's operating income is 69.Pubpoker92 million yuan, down 51.5% from the same period last year; net profit from home was 8.529 billion yuan, up 163.72% from the same period last year; and net profit from non-return was 4.883 billion yuan, up 57.69% from the same period last year.

With regard to the above performance drivers, * ST Zhengbang said: first, after the completion of the implementation of the reorganization Plan, the restructuring income generated by paying off debts by shares was 17.6 billion yuan; second, the scope of the company's consolidated statement was changed as a result of the implementation of the reorganization Plan and the establishment of a trust platform company, deducting profits by 2.464 billion yuan; third, due to the implementation of restructuring, full provision for impairment was made, with a profit deduction of 911 million yuan.

At the same time, * ST Zhengbang also mentioned that its provision for impairment of pigs and fixed assets at the end of the period is about 1.036 billion yuan. Some investors have asked why Zhengbang has more impairment in fixed assets than other enterprises.

In this regard, Zhengbang Chairman Bao Hongxing said that due to the influence of the pig market and the company's strategic adjustment, some pig farms and feed factories are in a state of shutdown, and the economic performance of the corresponding fixed assets has been lower than expected. according to the special evaluation report issued by the external assets evaluation institution with securities qualification, the impairment provision is provided for the corresponding fixed assets.

Some plants are in a state of shutdown, which leads to insufficient capacity utilization of ST, while it is mentioned in the annual report that the underutilization of capacity leads to high cost. If you want to reduce costs and increase efficiency, a steady increase in capacity utilization is one of the ways.

As for measures to improve capacity utilization, Zhengbang General Manager Xiong Zhihua said in response to a question from time Weekly that the company has set up a special project team to promote the resumption of breeding, feed and veterinary drugs. The project team focuses on safety, environmental protection, assets, hardware, market and other comprehensive factors, exports and invigorates policies according to local conditions, and has achieved preliminary results.

In the performance exchange meeting, Xiong Zhihua revealed the recovery of the company's feed sector.

It said that with the completion of the restructuring work, the company's financial and financial situation has been improved, while the Twin Group provides support for the company's feed business team building, operation and management, platform system, operating funds, and so on. The company officially launched the resumption of work and production work, giving priority to resuming work and production in areas with large market capacity and logistics advantages.

"in the future, the company will continue to improve capacity utilization and overall management level in an orderly manner with a steady and enterprising business style." Xiong Zhihua said so.

Bao Hongxing said that by the end of 2023, the company's debt ratio was about 53.97%, a big improvement from the end of the third quarter of 2023, and its financial position was healthy. In the follow-up, depending on business needs, the company will carry out exchanges and cooperation with all kinds of financial institutions, and the company will also strive to improve the efficiency of the use of funds, pursue cost reduction and efficiency, and control a reasonable level of debt.

As to when to inject the twins' assets into the listed company as a whole, Bao Hongxing said that according to the company's "restructuring plan", the twins group promised that within 24 months after the completion of the reorganization, the twins group will gradually start the restructuring process of its pig breeding, feed and other business assets into the listed company, and promise to complete the overall listing of related businesses and assets within four years after the completion of the restructuring. Please follow the follow-up announcement for details.

Greatly increase the fattening and seedling of piglets in April

Earlier, many industry insiders told time Weekly that pig prices would pick up in the second half of this year. Xiong Zhihua also said at the meeting that the company expects the relationship between supply and demand of live pigs to be improved this year. While the industry is generally optimistic about the future of pig prices, investors are also concerned about whether ST Zhengbang can increase the scale of pig production in the third and fourth quarters.

In this regard, * ST Zhengbang management will mention in the performance presentation meeting that the company's pig stock has gradually increased since the beginning of this year; by the end of the first quarter of 2024, the company can breed about 196000 sows, an increase compared with the end of 2023, and the company will flexibly formulate production and sales strategies according to its own actual situation and market conditions.

As of May 11, a number of listed pig enterprises announced the sales of live pigs in April. Among them, the average sales price of * ST Zhengbang commercial pigs (excluding piglets) was 13.79 yuan / kg, which was lower than that of other listed companies.

In this regard, Bao Hongxing said that the main reason is that the company has been able to eliminate some pigs and turn them into fertilizer for sale in the process of population renewal, coupled with the fact that the company has recently had a small number of commercial pigs, which has had an impact on the average sales price and average weight of commercial pigs to a certain extent. among them, the average sales price of genuine fat pigs in the company in April was about 15.54 yuan / kg.

It is worth noting that when the sales revenue of * ST Zhengbang rose slightly month-on-month in April (269 million yuan), the number of live pigs decreased by 33.29% to 181500, of which the number of piglets dropped sharply to 54500, a month-on-month decrease of 68.28%.

As for pig sales, the month-on-month and year-on-year decline is larger, and the year-on-year decline in sales revenue is larger, * ST Zhengbang said it is mainly due to the company's increase in the number of piglets fattening seedlings.

However, time Weekly reporter combed the sales brief and found that since March this year, while some pig enterprises have reduced piglet sales, there has also been a big increase in piglet sales in some pig enterprises.

Among them, the brightest one is "Pig first Brother" Muyuan Co., Ltd. (002714) (002714.SZ). After a big increase in piglet sales in March, its piglet sales in April exceeded one million to 1.05 million, an increase of 121.05% compared with the previous month. At the same time, the pig sales income of Muyuan shares and the average price of commercial pigs increased month-on-month.

Muyuan shares related people have told time Weekly that its March pig sales "volume and price rise" is mainly due to the sales structure, breeding piglets make a good profit.

As to why pig enterprises have two different operations of selling piglets and increasing the fattening and fattening of piglets at this stage, Liu Boyang, an analyst at Zhuochuang Information, said in an interview with time Weekly that from the perspective of the breeding cycle of live pigs, a large part of the stock of newborn piglets was the corresponding stock of breeding sows four months ago.

"in the fourth quarter of 2023, when the northern pig disease lost production capacity to a large extent, some sows in breeding enterprises also suffered certain losses, so they can only passively choose to keep (piglets) and reduce external sales. At the same time, there are also some enterprises, especially head enterprises, at that time, because they were better at environmental control and biosafety, they suffered less losses in breeding sows, so at present, the supply of piglets is relatively abundant, which can protect their own use at the same time. Export more piglets. " Liu Boyang analyzed.

In addition, Liu Boyang also mentioned that according to Zhuo Chuang Information Monitoring, the average price of 7 kilograms of piglets in April is basically 570,580 yuan per piglet, while the current cost of self-breeding 7kg piglets is 350,000,370 yuan per piglet, which means that pig enterprises can make profits and ease financial pressure by selling piglets at this time, so some enterprises also consider selling piglets to lock in profits. "the cost line is actually a watershed. Pig enterprise piglet sales almost began to turn losses into profits in March, while from January to February, the price basically hovered near the cost line, or even below the cost line."

Some people related to pig enterprises told time Weekly that the depositors' deposit columns of their company's reserves were full, and after the optimization of production batches, some more pig seedlings were temporarily sold at a reasonable price. However, it said that its company has not developed new farmers in the near future, first, because the operation is that the phase adjustment will not be sustained, and second, the price of piglets is still high, which temporarily slows down because of cautious considerations about pig prices in the future.

As for the future trend of pig prices, Liu Boyang said that according to various data and information forecasts, the expected high point is around September, and the core reason is the impact of the early stage of de-production of sows, cashing out contraction and concentrated entry of secondary fattening to aggravate the tension of pig supply. "according to the current forecast, we think the pig price of 19.0-19.8 yuan / kg may appear in September this year."