Aonong Bio (603363): Large number of breeding pigs and hog breeding section have great flexibility

Aonong Bio (603363): Large number of breeding pigs and hog breeding section have great flexibility

Event: Recently, we conducted a field survey on the production and operation status of Aonong Bio and its future development plan.

The company is a high-tech farming and animal husbandry enterprise integrating feed, animal health, pig farming and raw material trading.

Focusing on the brand positioning of “feed-centric service enterprises and food-oriented pig-raising enterprises”, the company actively develops and develops feed and pig breeding businesses, and its competitiveness is constantly increasing.

There are a large number of breeding pigs and we are actively deploying fattening capacity.

At the beginning of the listing, the company mainly sold breeding piglets and piglets in order to complement the feed business.

Since 2018, the company has been focusing on developing pig breeding business and actively supporting fattening capacity, which has increased the number of pigs produced.

At present, about 60% of the pigs sold by the company are piglets. In the future, the construction of the company’s fattening capacity and the growth of the stocking scale will increase the proportion of fattening pigs.

At present, the company has sufficient hog production capacity. At the end of the first quarter, the company has a total of 40,000 sows in stock, and 60,000 sow pig farms are under construction. The stock and construction capacity will reach the scale of 2 million hogs next year.

In the future, the company will increase its fattening capacity through self-built breeding communities and the development of stocking models. The goal is to achieve 6 million pigs per year by 2023 and 3 million pigs by 2021.

On May 14, the company issued an announcement to merge the “Cooperative Management Framework Agreement” with Guizhou Qihuan Modern Agricultural Development Co., Ltd. to establish Guizhou Aonong Qihuan Livestock Breeding Co., Ltd.

The “Seven Rings of Aonong” currently has 5,000 sows in stock and a designed sow inventory of 10,000. The company’s pig production has further expanded.

At present, the company ‘s complete pig breeding cost is about 14 yuan / kg, and the increase in costs is mainly due to the increase in the cost of African swine fever control. In addition, the company ‘s complete matching of the scale also leads to higher breeding costs.

淡水桑拿网 The synergy effect of the feed plate is obvious.

The company’s feed business contributed gross profit in 20187.

79 trillion, accounting for 99% of the company’s gross profit, is still the company’s largest business segment.

Prior to 2017, the focus of the company’s feed sector was mainly on expanding the feed market. After 2017, the company began to focus on the efficiency of feed sales. The cost rate during the 2018 period has dropped significantly. In the future, the company’s feed segment will continue to rise during the feed segment.

At present, the company’s feed sales are mainly pig feed, accounting for about 85% of the total feed sales.

In the future, the company will increase the sales of poultry meat and aquatic materials. The company plans to increase sales of other feeds to 50% of the total feed sales by the time the mid-term target is completed.

Risk Warning: Swine Fever and Disease, Natural Disasters, Poor Pig Production