同时，头部企业成本控制相对完善，且饲料成本下滑，对于企业盈利增长起到重要作用。Higher pig prices combined with lower costs, and many breeding companies reported an increase in performance in the third quarter
As of October 23, three pig breeding companies, including Wen's Co., Ltd., Jin Xinnong, and Dabeinong, have taken the lead in disclosing their 2024 three-quarter reports, and have all handed over excellent “report cards.”
Zhang Wenping, a pig analyst at the Agricultural Products Division of the Shanghai Steel Union, said that the improved performance of pig breeding companies mainly benefited from the rise in pig prices in the third quarter combined with the reduction in costs.
At the same time, the cost control of leading enterprises is relatively perfect, and the decline in feed costs plays an important role in corporate profit growth.
It is expected that with pickling activities in some regions in the fourth quarter, demand drives up consumption, and pig prices will remain within the profit margin of breeding companies.
Donghai Securities published a research report saying that the pig cycle fluctuates around 3-5 years, and factors such as the epidemic, demand, policy, and capital affect the length of the cycle. The loss period in this cycle has been lengthened, capacity removal has decreased, profit margins have narrowed, and production capacity has recovered slowly after profit, increasing factors affecting short-term fluctuations in pig prices. After the industry experienced full expansion, the growth rate of production capacity has slowed in the past two years and entered a stage of steady growth, and the profit cycle may be lengthened.
Currently, the balance ratio of pig companies is still high, and the industry is cautious about filling in the column. Breeding sow stocks began to decline in January 2023, leading to the current supply pressure decreasing quarterly. Short-term supply-side increases are limited, compounded by seasonal improvements in consumer demand. It is expected that pig prices will maintain their boom in the fourth quarter, pig companies' performance will improve quarter by quarter, and the industry has entered the profit cashing phase.
Domestic pig breeding related enterprises:
COFCO Jiajiakang (01610), DEKON AGR (02419)
Overseas pig breeding enterprises: Wanzhou International (00288)