Haida Group (002311): Aquatic advantages are still significant

Haida Group (002311): Aquatic advantages are still significant

Event Haida Group released the third quarter report of 2019.

The company achieved operating income of 355 in 2019Q1-3.

13 ppm, an increase of 15 in ten years.

18%, achieving net profit attributable to shareholders of listed companies.

12 ppm, an increase of 11 in ten years.

13%, realizing net profit attributable to shareholders of listed companies in place of non-recurring gains and losses13.

72 ppm, an increase of 10 in ten years.

84%.

By quarter, the company’s 2019Q1 / Q2 / Q3 single quarter revenue was 88.

75/121.

89/144.

48 ppm, an increase of 22 each year.

25% / 16.

97% / 9.

85%; 2019Q1 / Q2 / Q3 single quarter net profit attributable to the mother is 1.

22/5.

51/7.

3.9 billion, an increase of 21 each year.

81% / 10.

31% / 10.

13%.

Our analysis and judgment are that the sales of livestock and poultry feeds are growing rapidly, and the aquatic feed is stable. The main products of Haida Group include aquatic products and livestock and poultry feeds, high-quality aquatic animal seedlings, animal health products and biological products, pig breeding, etc.And animal feed production and sales are the company’s most important business.

The company achieved net profit in the first three quarters of 14.

12 ppm, an increase of 11 in ten years.

13%, a growth rate of 12 in the first half.

24% decreased slightly by 1.

11pct, we expect the company’s feed sales in the first three quarters to be basically the same as in the first half.

Among them, the benefit of livestock feed benefited from the rebound of livestock breeding volume and maintained a rapid growth (30% increase in 2019H1 for a period of time); aquatic feed due to the price of aquatic products near the cost line, the enthusiasm of farmers to feed decreased, at the same time, climate factors and industry competitionDue to the impact of intense and other factors, sales growth has remained stable (an increase of 16% per year in 2019H1). We believe that the company has a significant competitive advantage in the aquatic feed sector, and the period of the downturn in the industry can further increase the city’s market share; due to the continuous decline in pig feed stock, sales of pig feeddecline.

In terms of profitability, the company’s gross profit margin was 11 in 2019Q1-3.

97%, a slight increase of 0 a year.

19pct, the first is expected to increase the gross profit margin of the poultry feed and raw materials trading sector.

In Q1-3, the company’s net margin was 4.

23%, unchanged from the same period last year.

Regarding the period expense ratio, the company’s period expense expenditure for Q1-3 2019 was 7.

05%, rising by 0 every year.

30pct.

Among them, the sales expense ratio increased by 0.

19 points to 3.49 points.

Management and R & D expense ratio rose by 0.

16pct to 3.

06%.

The financial expense ratio drops by 0 every year.

05pct to 0.

50%.

The poultry industry’s production and sales are increasing, and the bottom of the pig breeding industry will pass. The company’s feed sales are expected to improve gradually from the previous month. According to data from the Ministry of Agriculture and Rural 重庆耍耍网 Affairs, in September 2019, the number of capable sow breeders decreased by 38.

9%, a decrease of 2 from the previous month.

8%, about 9 months down in August.

The 1% drop has been severely reduced. We expect that the number of fertile sows in 2019Q4 will bottom out, and the breeding volume is expected to pick up in 2020.

As for the poultry breeding industry, driven by the continued boom in the price of poultry, the breeding volume has continued to increase. It is expected that the poultry and livestock industry will increase in both supply and demand in 2020.

We expect the company’s poultry meat sales to continue to grow in 2020, and pig feed sales will gradually improve from the previous month.

Investment suggestion: We expect the company’s operating income to be 500 in 2019-2020.

1.5 billion and 602.

18 淡水桑拿网 ppm, a year-over-year growth rate of 18.

64% and 20.

40%; net profit attributable to mother is 17.

2.7 billion and 20.

4.6 billion, an increase of 20 in ten years.

18% and 18.

47%; the company’s total share capital is 15.

8.1 billion, EPS is 1.

09 yuan / share and 1.

29 yuan / share, PE is 28.

3x and 23.

9x, maintain “Buy” rating.

Risk warning: aquaculture is severely reduced by natural disasters; hog prices change dramatically.