Recently, the overall performance of the A-share market has been weak, but the annual report forecasts continue to be released, and the stock prices of some companies with good performance have clearly become active.

This evening, the leading company in the Farming industry, Wens Foodstuff Group, disclosed its performance forecast for 2024, expecting to turn a net profit for the year.

Farming costs are decreasing.

In 2024, Wens Foodstuff Group expects to achieve revenue exceeding 100 billion yuan, with net income attributable to the parent company ranging from 9 billion yuan to 9.5 billion yuan, turning a profit from a loss of 6.39 billion yuan in the same period last year.

It is worth noting that this is also the first time revenue for Wens Foodstuff Group has exceeded 100 billion yuan since its listing.

By business segment, Wens Foodstuff Group stated that in 2024, the company's sales of pork are expected to grow year-on-year, with the average selling price of live pigs rising year-on-year. The company continues to strengthen the management of basic production and major epidemic prevention and control efforts, with core production indicators continuously improving, production trends remaining positive, and additionally benefiting from declining fodder raw material prices, leading to a significant decrease in farming costs year-on-year and a substantial increase in profits from hog farming, achieving a turnaround.

At the same time, sales of broilers are expected to grow year-on-year, while the average selling price of broilers has slightly decreased year-on-year. The company's Raising Chickens business continues to maintain a stable high level of production, and benefiting from decreased fodder raw material prices, the company's farming costs have decreased year-on-year, resulting in increased profits from the Raising Chickens business compared to last year.

Analysts believe that the performance guidance of Wens Foodstuff Group meets expectations, but does not exceed them, remaining at a normal level, primarily benefiting from the dual support of rising pork prices and declining costs last year.

Share buyback of nearly 0.6 billion yuan.

Meanwhile, Wens Foodstuff Group's share buyback has also made new progress.

Previously, Wens Foodstuff Group announced a plan to repurchase company stocks worth 0.9 billion to -1.8 billion yuan, with an upper limit for the buyback price of 26.86 yuan per share, aimed at implementing an employee stock ownership plan or stock-based incentive.

As of December 31, 2024, Wens Foodstuff Group has cumulatively repurchased 33.6498 million shares, accounting for 0.5057% of the company's total share capital, with the highest fill price at 19.51 yuan per share and the lowest fill price at 15.33 yuan per share, totaling nearly 0.6 billion yuan.

This year, pork prices may face pressure.

In recent years, due to the industry cycle remaining at a low level, the stock price performance of pork stocks has consistently been weak.

Affected by the overall market, Wens Foodstuff Group has seen four consecutive trading days in the red this week, with a slight decline of 0.86% today, recently reported at 16.06 yuan per share, with a total market value of 106.9 billion yuan.

Since reaching a year-to-date low of 15.12 yuan per share on September 18 last year, the stock price of Wens Foodstuff Group rebounded following the 9.24 market trend but then fell sharply, currently down more than 20% from the peak.

Looking back at 2024, Guolian pointed out that hog prices began to oscillate upwards starting in April 2024, with the impact of pig diseases marginally weakening and fodder costs continuously declining. Hog prices peaked in August at over 21 yuan per kilogram but began to drop, returning to 15.42 yuan per kilogram by December 26.

Recently, pork consumption before the Spring Festival will enter a traditional peak season, boosted by winter pickling and consumption from holidays like New Year's Day. Hog farming is expected to remain profitable before the Spring Festival.

Looking ahead this year, Guolian believes that the sow production capacity will slowly recover in 2024, and by 2025, hog supply will enter a loose phase, putting pressure on hog prices.

CICC believes that hog prices may steadily decline in 2025, while efficient leading companies are still expected to remain profitable throughout the year. In the long term, hog prices display a new paradigm of increased volatility and shortened cycles. By 2025, pig enterprises will shift from 'capital competition' to 'cost competition' focused on operational optimization, leading to a gradual closure of growth windows for smaller pig enterprises that cannot achieve substantial internal profit accumulation. Leading companies with strong internal growth will only become stronger.