miniarcadepacman| Breeding costs continue to fall. Wen's shares reduce losses in the first quarter

Li Yingquan, a reporter from the Securities Times

On the evening of April 28th, Wen's shares (300498) (300498) released its 2023 annual report. The company achieved a total revenue of 899 last year.Miniarcadepacman0.02 million yuan, an increase of 7 percent over the same period last year, a record high; the net profit of returning home was 6.39 billion yuan, turning to a loss over the same period last year; and the net operating cash flow in 2023 was 7.6 billion yuan. The company plans to pay a dividend of 1 yuan (including tax) for every 10 shares, with a total cash distribution of 662 million yuan (including tax).

At the same time, Wen's shares also released a quarterly report for 2024. The company's total operating income in the first quarter was 21.842 billion yuan, an increase of 9.37% over the same period last year. The net profit of its parent was 1.236 billion yuan, compared with a loss of 2.749 billion yuan in the same period last year, which greatly reduced the loss over the same period last year. Net operating cash flow was 2.3 billion yuan.

According to the annual report, the number of Wen's shares in pigs and chickens reached an all-time high in 2023. The company sold a total of 26.26 million pigs (including hairy pigs and fresh products), an increase of 47 percent over the same period last year, and 1.18 billion broilers (including hairy chickens, fresh products and cooked food), an increase of about 10 percent over the same period last year, including more than 150 million fresh products and nearly 14 million cooked food.

In the pig breeding industry, cost control has always been the key to enterprise competition. Since the impact of non-plague in 2018, the cost of raising pigs in Wen's shares has risen sharply. After more than five years of regular work such as prevention and control of major epidemic diseases and basic production management, as well as a series of special actions such as "reducing costs and increasing efficiency", "strictly managing enterprises" and "strengthening technology and improving quality", the breeding cost of Wen's shares has continued to decline.

In the first quarter of 2024, the comprehensive cost of pig breeding in Wen's shares dropped to about 7.6 yuan / jin, a quarter-on-quarter decrease of about 0.5 yuan / jin. Among them, in March this year, the comprehensive cost of pig breeding dropped to about 7.4 yuan / jin, a monthly decrease of about 0.4 yuan / jin.

At the same time, according to the comparison of past sales prices, the average sales price of Wen's shares is generally more competitive than that of their counterparts. In March this year, Wen's shares of a single pig basically broke even, and 9 of the company's 16 pig-raising regional units have made a profit.

Recently, the relationship between supply and demand in the market has accelerated to improve, pig prices have rebounded for many weeks in a row, and the losses of breeding enterprises have continued to reduce. With regard to the trend of pig prices in the later period, Lei Liugong, director of the Market and Informatization Department of the Ministry of Agriculture and villages, said on April 19.Miniarcadepacman"the relationship between supply and demand in the pig market will be further improved in the second quarter of this year, and pig farming may turn losses into profits."

The cost of Wen's chicken business has also fallen steadily. According to the annual report, the listing rate of the company's broilers was 94.9% in 2023, an all-time high. In February this year, sales volume due to a small number of Spring Festival sales days and other reasons led to a month-on-month reduction of 30%, the company's February feather chicken column full cost is still maintained at 6.5 yuan / jin, the industry has obvious advantages. According to the data of China Animal Husbandry Association, the production capacity of parents of yellow-feathered broilers is at an all-time low at present, and it is more likely that yellow-feathered broilers will usher in the peak season in 2023.