Enemy rivals, Shennong shares rushed to IPO, can pork concept stocks add another
Although the year of the pig has passed, the popularity of pork concept stocks has not retreated.At present, there are 29 pork concept stocks in A shares. The total market value of 29 pork concept stocks increased by about 3783 in the whole year last year.48ppm; In the first quarter of this year, the total market value of these 29 pork concept stocks increased by about 1963.7.1 billion yuan.As of April 15th, 17 listed pig companies have released their performance forecasts or performance reports for the first quarter of this year. In addition to 2 listed companies, 15 companies have achieved profitability.On the whole, pig companies still bucked the trend in the first quarter.The market is so popular, it is inevitable that some people are hot.Recently, a Yunnan pig company submitted a prospectus.This is the second time that Shennong shares have hit the IPO and reorganized. Has the company applied for listing due to cash transactions and other issues? Now that it is fighting the IPO again, can it be fulfilled?The feed factory transformed into a large pig farming company, and it plans to raise 1.9 billion yuan for the listing of pig farming Shennong. When it was established in 1999, its main business was feed processing business.Nowadays, Shennong shares focus on the construction and development of the pig industry chain, forming a complete industry chain integrating feed processing, pig breeding, pig slaughtering and fresh pork food sales.From 2017 to 2019, Shennong Co., Ltd. achieved operating income in the order of about 10.4.4 billion, 10.9.2 billion, 17.3.3 billion; the gross profit of the main business is about 2 respectively.4.4 billion yuan, 1.6.7 billion, 6.1.3 billion yuan.Shennong shares said: The company’s operating income and main business gross profit changes are mainly due to changes in the breeding business operating income and gross profit.In this listing, Shennong shares intend to raise funds of about 19.06 trillion, mainly used to improve the company’s pig industry chain.According to Shennong Corporation, the construction project of high-quality piglet expansion base and high-quality pig fattening base can expand the company’s pig breeding and commercial pig breeding scale, further expand the company’s production capacity, and increase the company’s market share in Yunnan.At the same time, the company plans to build a 50-year-old feed and bio-safety center project in Yunnan Shennong Luliang, so as to increase the feed demand after the expansion of pig production capacity.In addition, Shennong Co., Ltd. plans to build a new project of slaughtering 500,000 pigs per year in Yunnan Shennong Qujing Food Co., Ltd.Some top people told the sauna and Yewang that African swine fever has caused a great impact on the breeding industry, causing many small-scale farmers to withdraw, leaving a big market gap. Now, many large-scale enterprises are trying to expand to seizeThis part of the market share.Sauna, Yewang noted that Shennong shares mentioned in its prospectus, “Pig producers generally lack collateral, so it is difficult to indirectly finance financial companies.The investment scale of the modern hog industry is generally distorted, and the difficulty in financing has made it difficult to expand the scale of production and operation.Shennong also acknowledged: “In the next few years, the company will vigorously develop industrial aquaculture, and the performance of investment and construction funds for industrial farms has increased significantly, requiring a large amount of capital expenditure. Even if the company still maintains a rapid development trend, it is the key to improving operating performance.During this period, it will still be difficult to maintain the company’s funding requirements for subsequent investment projects based on its own accumulated rolling development.”On April 17, Shennong told the sauna that Yewang: After this public offering, the company ‘s total assets will increase, the asset-liability ratio will decrease, the debt repayment ability will further increase, and current assets will increase significantly in the short term.The impact of IPO was denied, and now the scale of cash transactions has dropped significantly. Shennong’s main business includes feed processing and sales, pig breeding and sales, pig slaughtering, and fresh pork food sales.As of the end of the reporting period, Shennong shares 20 wholly-owned subsidiaries, with product sales covering Yunnan, Guangxi, Guangdong and other regions.This is not the first time Shennong shares have applied for listing. As early as September 2017, Shennong shares sent a prospectus.However, on November 7, 2017, the Development Review Committee announced that Yunnan Shennong Agricultural Industry Group Co., Ltd. (first launch) had not passed.In the announcement of the audit results, the NDRC raised four major questions regarding Shennong shares.The NDRC had requested Shennong shares to explain the authenticity, necessity and reasons for the year-on-year increase in cash transactions, the process of cash transactions and related internal control measures, and future proposed measures to reduce cash transactions.Sauna, Yewang noted that in the latest prospectus, Shennong cash receipts accounted for 21% of its operating income in 2017.06% dropped to 3.49%.Shennong said: Since the end of 2017, the company has begun to standardize the collection and settlement methods by upgrading POS collections, promoting WeChat collections, and other methods, reducing the proportion of cash collections.The proportion of both has dropped significantly.With the further expansion of convenient payment represented by WeChat and Alipay, it is expected that the company’s future cash collection ratio will further decrease.For the company’s gross profit, Shennong shares also made a detailed explanation in the latest prospectus.From 2017 to 2019, affected by changes in the price of hogs and the epidemic of African swine fever, the price of hogs showed a trend of decreasing first and then increasing. The unit price of the company’s commercial pigs was 15.32 yuan / kg, 12.91 yuan / glucose and 19.18 yuan / kg; at the same time, the unit cost of the company’s commercial pigs was 11 due to factors such as feed material price fluctuations.57 yuan / kg, 12.64 yuan / glucose and 12.07 yuan / one thousandth, which led to fluctuations in the company’s commodity gross profit margin.At the same time, the report merged and excavated color pig farms, Pule pig farms and the corresponding supporting and fattening farms were successively completed and put into production.160,000 heads, breeding pigs 4.820,000 pigs, the gross profit margin of piglets and breeding pigs is relatively high, increasing the company’s main business gross profit in 2019.With strong rivals, how is Shennong’s share competing?The main business customers of Shennong Co., Ltd. are mainly in Yunnan Province. The merger was reported. The proportion of sales revenue realized by Shennong Co., Ltd. in Yunnan Province accounted for 88% of the main business income.47%, 86.90% and 71.32%, facing the risk of relatively concentrated sales market.Shennong’s main business is divided into three major business segments: feed processing, pig breeding and pig slaughtering.Sauna and Ye.net noticed that in these three sectors, Shennong shares most of its strength, and many of them have landed on the capital market first.In the feed business, it mainly has new hopes, Dabeinong, Aonong Biological, Jin Xinnong, Zhengda Group, twins, etc., these companies, except Jin Xinnong, have already established feed business subsidiaries in Yunnan Province.In the hog breeding business, Shennong Co., Ltd. is affiliated with Wenshi shares, Muyuan shares, etc., transforming New Hope, Dabeinong, Aonong Biological, Zhengda Group, twins, etc. are also actively developing pig breeding business.In the pig slaughtering business, part of Shennong shares include Shuanghui Development, Yurun Food, Delis, Longda Meat, and Huatong.So, how competitive is Shennong?The prospectus stated that the report merged, and the gross profit margin of Shennong’s feed business was close to that of Jinxin crops, followed by Dabeinong and Aonong Bio.This item, Shennong said that initially, Dabeinong ‘s feed sales accounted for a higher proportion of front-end materials and premixes with higher gross profit margins. Aonong Bio ‘s feed products such as premix for pigs and concentrated feed for pigsThe interest rate is relatively high. In addition, the expansion of the feed business of Dabeinong and Aonong Biology has certain advantages in raw material purchase prices and cost control capabilities, and also has a certain impact on gross profit margin.In terms of hog farming business, Shennong shares said: its gross profit margin for hog farming business in 2017 was downgraded to Muyuan shares, because Muyuan shares higher sales of high-margin products such as piglets and breeding pigs; and the increase in gross profit margins of Shennong shares in 2019 spread and eventually exceededThe reason for the Muyuan shares is that Shennong shares a higher proportion of high-margin products such as piglets and breeding pigs.Sauna, Ye Wang editor Yan Wei Li proofreading Wang Xin