Domestic Aquaculture Industry Development Report for the Second Half of the Year

Driven by the soaring prices of foreign agricultural product futures, the domestic animal husbandry industry is expected to gradually emerge from the shock adjustment pattern. With the advent of the peak demand season in the second half of the year, companies with good interim results and a large drop in the previous period deserve special attention.

Zhang Tong, an industry analyst at Datong Securities, said: “The price of agricultural products is determined by the relationship between supply and demand. The gloomy situation in the first half of the year is likely to improve in the second half of the year. The prices of pork, chickens and ducklings have been at the bottom for a long time. The downside is limited. After the demand starts, the price is likely to rise upwards, and the domestic company's share price will obviously benefit."

Chen Guangyi, an analyst at Shunxin Agricultural Founder Securities, said that the company's small-scale livestock and poultry breeding farm is one of the 33 national-level breeding farms in the country. The breeding pig system has three supporting facilities to meet the needs of different types of breeding farms to form a breeding stock. In addition to markets across Tibet, Qinghai, and Guizhou, the expansion projects in other places have entered a profit contribution period. The company revolves around the concept of big agriculture, taking the processing of agricultural products as its main body, logistics and distribution as a platform, and creating an agricultural product processing industry chain integrating production, processing, logistics, and sales. With the strengthening of food safety awareness, the company enjoys scale advantages in meat processing and is marching toward agricultural integration.

Zheng Junfeng, an analyst at Zhengbang Galaxy Securities, believes that land resources are the main consideration for the expansion of hog farming companies, and land suitable for farming has scarcity. The company has been deployed in Liaoning, Jilin and Heilongjiang provinces in the three northeast provinces. It is expected that the company's hog production capacity in Northeast China will reach more than 8 million heads. Northeast China is the main producing area for feed ingredients such as corn and soybean meal. The Bohai Rim Economic Circle has a supply gap of 7 million pigs, which has a broad market prospect.

Huang Fan, an analyst at the Dongguan securities industry, believes that in addition to the strong turnaround in demand, industry policies in the second half of the year are also expected to prompt the price of the sector to rise. “As for the cyclical sectors such as aquaculture, the holiday consumption and topping up needs in the second half of the year will lead to a significant improvement in the industry environment. Historically, the second half of the year has also been the period with the greatest degree of industrial policy support. The space for demand reduction has been digested. Under the double stimulus, the rise in the stock price of related companies can be expected in the second half of the year."

Xie Gang, analyst of Shengluo Development Qilu Securities, believes that the company is the largest self-slaughtered white chicken broiler manufacturer in China and an important supplier of chicken meat in southern China. It has established first-line fast food and meat processing companies such as KFC, McDonald's and Shuanghui. A good relationship. The company's main business is clear. The chicken business accounts for 98% of total operating revenue. It is optimistic about the reproducibility of the Sanon model and the certainty of sales growth, driving the profitability of the medium and long-term profits. The integrated management model of the company's entire industrial chain can effectively replicate the business. The expansion of new projects in different places will push the pace of capacity expansion to double the production capacity every 2-3 years.

Zhao Yue, an analyst with Xinwufeng RiXin Securities, said that the company is focusing on building the first high-end cold meat brand in China, leading the industry in terms of safety, high-quality live pig breeding technology, production equipment, and product quality. The industry has a prominent position. The company's main business transformation and upgrade is successful. It adopts both the front-end and back-end strategies and focuses on the entire industry chain. It is supported by “front selling pigs” and “back-end meat” as the fulcrum, creating cold chain logistics, slaughtering and deep processing, pig trading market, and livestock and poultry machinery. Multi-industry collaborative development model with front-end and back-end linkage development such as R&D and production. The entry of products into the terminal market will improve the company's lack of bargaining power and become a new performance growth point.