BOABC Viewpoint: The business climate index of white broiler industry continued to rise in the first half of 2019, and the benefits of listed companies significantly increased

The supply of white broilers also was tight in the first half of 2019. Hog production capacity was reduced by 30%~40% due to the outbreaks of African swine fever, resulting in that the prices of live broilers and chicken products rose to 9.67yuan/kg and 11.85yuan/kg respectively, up 22.7% and 21.84% from the previous year. The prices of parental chicks and commercial chicks were 65.18yuan/set and 7.23yuan/set respectively, increasing by 93.13% and 203.65% year-on-year. Sharp growths in the prices of products of broiler industry drove up the performance of companies, and the net profits significantly rose.
 
(1) It’s predicted that Sunner Development achieved net profit of 1.65-1.66 billion yuan in the first half of 2019, rising by 392.53%-395.51% compared with the 335 million yuan in the same period of last year. The estimated profits from GP breeders to slaughtering business exceeded 6.5yuan/bird in the first half of the year, while the profit in the same period of last year was 1.0-1.5yuan/bird.
 
(2) The predicted net profit of Yisheng was 900-950 million yuan in the first half of 2019, a year-on-year growth of 26.78-26.93 times from 32.39 million yuan in the same period of last year. As the largest broiler leading company, Yisheng works on GP breeder and parental breeder feeding business. In the first half of this year, the average profit of commercial chicks exceeded 5yuan/bird, while the profit in the same period last year was less than 0.5yuan/bird.
 
(3) It’s predicted that Minhe Animal Husbandry Company reached a profit of 800-960 million yuan in the first half of 2019, a year-on-year growth of 4244%-5113%. As the selling prices of commercial chicks and other major products increased sharply from the same period of last year, the company’s performance achieved an explosive growth.
 
(4) Xiantan Company reached a net profit of 380-420 million yuan in the first half of 2019, a year-on-year growth of 327%-372%. The business climate index of white broiler industry continued to increase, resulting in a year-on-year growth in the prices of chicken products, leading to an increase in net profit. 
 
It’s predicted that the sales of white broiler chicks and commercial broilers in the first half will be higher than that of the same period of 2018; the prices of white broiler chicks and live broilers will fall somewhat. The company will remain profitable with a decreased net profit.