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The Incomes of Listed Feed Companies in the First Three Quarters of 2017 Further Ascended, but Most of Them Saw a Drop i

China Agriculture Report By CnAgri2017-11-13 13:48:51China Agriculture Report Print In the first three quarters of 2017, most of feed companies saw a year-on-year growth in operating incomes, but most of them saw a drop in profits, only Haid, Tongwei, Dabeinong and Trangrenshen saw an increase in profits. The main reasons are as the follows:
A drop in farming margins dragged down the profitability of some companies involving in farming business. In the recent years, feed companies generally are extending their industrial chains and striving to develop farming business. For example: the profits of New Hope, Zhengbang, Wellhope, Jinxinnong and Tech-Bank saw a relatively great year-on-year decline in profits limited by a drop in hog and poultry farming margins.   
Some of the companies who see an increase in net profits focus on main business, control expenses and enlarge selling scale in order to raise gross profits. For example, thanks to a rapid increase in sales, Haid Feed has a great increase in aqua feed profits; after two years of adjustment, Dabeinong’s feed business gets growth back on track and meanwhile selling expenses drop obviously. Some feed companies are engaged in diversified development, and achieve an increase in profits by taking advantage of new business. For example, benefited from polycrystalline silicon sector, Tongwei has a great increase in profits; by taking advantage of food business and acquiring Premierinve, Tangrenshen achieves an increase of more 50% in net profits.             
Table1, Operating Performance of Main Feed Groups, the First Three Quarters of 2017
Unit: Million RMB
Group Income YOY% Net Profit YOY%
NewHope liuhe 45,765.36 3.26 1,939.61 -8.23
Haid Group 26,467.83 32.66 1,149.35 30.61
Tongwei Group 19,548.88 24.56 1,528.54 69.53
Zhengbang Group 14,718.07 5.99 408.17 -54.95
Dabeinong 13,351.86 12.82 839.49 41.06
Tangrenshen 10,345.64 32.18 213.38 58.21
Well Hope 9,976.81 17.78 264.15 -10.80
Jinxinnong 2,412.14 21.40 91.59 -26.00
Tech-Bank 2,257.28 25.98 219.99 -35.58
Kondarl 1,123.70 -4.14 -46.78 -255.35
Zhenghong 970.67 4.22 16.15 503.45
Source: BOABC database
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