Makihara (002714): Enjoying sustained high pig prices creates growth and high growth
1. The event company released its 2019 annual report.
2. Our analysis and judgment 1) The benefited pig price continued to rise, and the company’s performance was in line with expectations in 2019.
21 ppm, an increase of 51 in ten years.
04%, net profit attributable to mother 61.
140,000 yuan, an increase of 1075 in ten years.
37%, net profit after return to the mother after deduction is 59.
380,000 yuan, an increase of 1186 in ten years.
The company’s comprehensive gross profit margin is 35.
95, +26 over the same period last year.
Period cost accounted for 7.
13% a year -1.
71 points, asset-liability ratio 40.
04%, a year -14.
03pct, the overall cost control is good, the company has overlapping management capabilities.
In Q4 2019, the company achieved operating income of 84.
880,000 yuan, an increase of 101 in ten years.
77%, net profit attributable to mother 47.
27 ppm, an increase 杭州桑拿洗浴会所 of 2680 per year.
56%, net profit after deduction is 45.
880,000 yuan, an annual increase of 3100.
The substantial increase in the company’s profits stems from upward pig prices.
2) Leading cost control and full production capacity reserve. In 2020, the number of pigs on the market will increase by 2019.
330,000 heads, six years -6.
89%, of which 867 were commercial pigs.
910,000 heads, 154 piglets.
710,000 heads, breeding pigs 2.
According to the calculation of net profit, the company’s 19-year average profit was about 618 yuan.
As of December 31, 19, the company’s total fixed assets and construction in progress were 274.
6.3 billion, an increase of 59 from the beginning of the year.
44%; In addition, the company’s productive biological assets were 38.
350,000 yuan, +35 西安耍耍网 from the end of Q3.
18%, +162 over the same period last year.
The company’s biological assets have grown significantly. The company can breed 1.28 million sows and 720,000 back-up sows. The future production of pigs is guaranteed.According to the company’s announcement, the company plans to sell 17.5-20 million pigs in 2020, an increase of 70 in ten years.
7% to 95.
3) Leading in breeding and breeding technology, fully benefiting from the industry’s high prosperity. In 19 years, the company developed some southern provinces. It has deployed breeding production in Guangdong, Guangxi, Yunnan and other places. By the end of the year, the number of subsidiaries has reached 138, distributed in 18 provinces.
Considering the industry trend from “pig-adjusting” to “meat-adjusting”, the company started three slaughterhouse projects in Henan Province, with a total design capacity of 6 million heads.
In terms of breeding, the company continued to upgrade and reform pig houses, while using artificial intelligence technology to establish pig disease prediction models, etc., to carry out pig breeding more efficiently.
Against the background of hog prices continuing to be high in 2020, overlapping companies are experiencing high growth, and the company’s performance has maintained a high growth trend.
Investment suggestion The company has industry-leading hog breeding and breeding technology, surpassing excellent cost management and control, and the rapid growth of hog slaughtering, benefiting from continued high pig prices, and the company’s performance has grown significantly.
We expect the company’s EPS to be 2020-2022 respectively.
72 yuan, corresponding to 9/9/11 times the PE, maintaining the “recommended” level.
Risks indicate that pig prices are not up to expectations, disease risk, and policy risks.