Cover News Reporter Zhu Ning
With the continuous rise in pig prices, Muyuan shares , which continued to lose money in the first half of the year, finally ushered in a single-quarter profit, and the profit in the third quarter smoothed out the losses in the first half of the year.
On the evening of October 24, Muyuan shares disclosed its 2022 third quarter report, with revenue of 80.774 billion yuan in the first three quarters and net profit attributable to approximately 1.512 billion yuan. In the third quarter alone, Muyuan shares' net profit was 8.196 billion yuan, and increased by 1,097.41% year-on-year. In the first and second quarters, Muyuan shares lost 5.18 billion yuan and 1.503 billion yuan respectively, and Muyuan shares would fill in the losses in the third quarter.
On October 25, as of press time, Muyuan shares fell 0.41%, at 54.08 yuan per share.
pig price rose
revenue and net profit improved
In fact, the performance of the entire "pig enterprise" generally declined in the first and second quarters until it began to recover in the third quarter. The reason for this situation is that the average sales price of live pigs in the first half of the year was closely related to the low level. Since April, live pig prices have gradually rebounded and accelerated in June, and have remained in the range of 20 yuan/kg to 22 yuan/kg since July and August.
The price of pork continued to rise, which also caused Muyuan shares' performance to rise sharply in the third quarter. According to Ministry of Agriculture and Rural Affairs data, as of yesterday (October 24), the average price of pork in the national agricultural product wholesale market was 35.69 yuan/kg, nearly twice the lowest point of 12.5 yuan/kg in March 2022.
Regarding the reasons for revenue growth, Muyuan shares stated that it was mainly due to the increase in sales. From January to September, Muyuan shares sold a total of 45.224 million live pigs, including 39.69 million commercial pigs, 5.237 million piglets, and 3.297 million pigs. Previously, Muyuan shares said that it is expected to slaughter 50 million to 56 million live pigs in 2022.
It is worth noting that as of the end of September this year, the number of sows of Muyuan shares was 2.598 million, an increase from the end of the second quarter and is expected to maintain growth in the fourth quarter. If pork prices continue to run at a high level, this may mean that Muyuan shares' performance in the fourth quarter will continue to improve.
Muyuan shares said that the company's pig breeding performance has improved at this stage compared with the previous period, but the improvement in production performance still takes a certain amount of time to fully reflect the cost. As the company further strengthens its management, there is still room for pig breeding costs to decline. The company hopes to achieve a phased cost target of about 15 yuan/kg this year.
Regarding the later trend of pig prices, market analysis pointed out that pig prices are still expected to be in an upward cycle. Although the expected output has increased, the price is under pressure to fall, but the low price support force at the breeding end is still strong, and the room for falling back is limited, and the overall high range is fluctuating.
is involved in the new energy field
On the evening of October 24, Muyuan shares issued an announcement that it plans to invest 45 million yuan to increase its capital in Nanyang Longyuan New Energy Technology Co., Ltd. (hereinafter referred to as Longyuan Technology). After the capital increase is completed, Muyuan shares will hold 45% of the equity of Longyuan Technology .
It is understood that Longyuan Technology's business scope focuses on new energy businesses such as solar power generation technical services, photovoltaic equipment and components sales, photovoltaic power generation equipment leasing, contract energy management, , power transmission and distribution and control equipment manufacturing, electric vehicle charging infrastructure operation and other new energy businesses.
Muyuan shares said that after this capital increase in Longyuan Technology, Longyuan Technology became a shareholder of Muyuan Technology, which is conducive to leveraging the industrial advantages of both parties, reducing the company's production costs, and promoting clean production.
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