Tianbang Shares (002124): Results bottomed out and actively paid attention to the progress of the supplementary column
Event: The company released its 2018 annual report and 2019 first quarter report.
The company achieved revenue of 45 in 2018.
1.9 billion, +47 a year.
63%; net profit attributable to mother -5.
72 trillion, previously 杭州夜网 318.
19%; net profit attributable to non-parents is -6.
610,000 yuan, 381 years before.
2019Q1 company achieved revenue of 12.
45 trillion, +47 a year.
64%; net profit attributable to mother -3.
350,000 yuan, an average of 1142% in ten years.
The number of pigs slaughtered has increased, and the breeding efficiency has improved in 2018.
In 2018, the company produced 216 pigs.
970,000 heads, an increase of 114% in ten years.
Affected by the non-plague situation, the average sales price of commercial pigs was 12.
17 yuan, 18 years average.
The company made full use of its technological advantages. In the first three quarters of 2018, the total cost of breeding decreased by about 6% compared with 2017, and even in the fourth quarter, the cost of breeding increased due to the embargo policy, so the total cost of breeding was 12.
87 yuan / kg for years before 20171.
In addition, the company accrued part of its inventory impairment provisions in 2018, which resulted in the suspension of the pig breeding business2.
The sluggish pig price in 2019Q1 + the cost of breeding went up, and the performance bottomed out.
The number of pigs slaughtered by the company in Q1 2019 was 76.
260 thousand heads, an increase of 79% in ten years.
The pig industry was sluggish in the first quarter, with an average sales price of 11.
17 yuan / kg, superimposed company costs upward, the company’s gross profit margin is -6.
1%, maybe 3.
3.5 billion, bottoming out.
In March 2019, the company’s average hog sales price has risen to 13.
At 34 yuan / kg, the current hog price has entered the upward channel, and the profitability of hog breeding is expected to improve after the second quarter.
Affected by the embargo policy in the first quarter of 2019, there was a situation where breeding pigs were slaughtered for fattening pigs, resulting in a reduction in productive biological assets.
In 2019, young people will enter the battlefield, and China Animal Insurance’s equity transfer will be completed.
In 2018, the company fully made a total of 4 asset impairment provisions and investment losses for China Dynamic Insurance related interests.
US $ 0.7 billion. In April 2019, the company announced that it would transfer China Mobility’s equity to the actual controller, Mr. Zhang Banghui, with a transaction price of US $ 100 million and another US $ 100 million as a security deposit. The transfer of a 40% equity transaction in Zhongyu Zhihong Investment Management CompanyThe consideration was US $ 100 million and another US $ 100 million security deposit was obtained.
In summary, the company received a total of 400 million, which can cope with the pressure of funds and ensure business development.
Outlook for 2019: Continuous expansion of pig production capacity and steady development of feed business.The company can currently breed close to 150,000 heads of sows and strive to produce more than 3 million heads vertically.
In 2019, we will continue to expand the production capacity of pig breeding and realize the initial supplementary budget of the new pig farm. It is estimated that the number of slaughtering in 2020 will reach 5.2 million heads.
In 2019, the aquatic feed business will benefit from the optimization of product structure, and the high growth of shrimp feed will maintain steady development.
Investment suggestion: The pig breeding business bottomed out and benefited from the improvement in profitability of pig prices in the second half of the year.
Expected net profit attributable to mothers in 2019/20/218.
80 ppm, the current market value corresponds to PE32.
9x, maintain “Buy” rating.
Risk reminder: Macroeconomic fluctuations, non-plague situation intensify, raw material prices fluctuate, production volume is less than expected, and pig price rises are less than expected.