Wens Foodstuff Forecasts Net Profit to Double YoY in 1H2020
Agricultural livestock is a sector of immense size, growth and complexity in China. As of 2019, Wens Foodstuff had achieved the largest sales volume of hogs and broilers among China's listed companies.
Wens Foodstuff (300498:SZ) has released a performance forecast for the first half of 2020. The company expected a net profit of CNY 4 billion to CNY 4.25 billion, an increase of 189%-207% year-on-year.
Affected by the epidemic and the oversupply in the live poultry market, the sales price of live poultry dropped sharply. The prices of the company's chickens and ducks fell by 17.86% and 31.63% year-on-year, respectively, resulting in significant losses in the poultry business.
However, due to the tight supply in the pork market, the price of live pigs continued to remain high. The pig business recorded increased profitability.
In 2019, the company saw a revenue growth rate of more than 250%, and its net profit reached nearly CNY 14 billion, ranking first among A-share listed 'pig feed' companies, with an average daily profit of around CNY 38.27 million.