The Zhitong Finance App learned that COFCO Jiajiakang (01610) fell by more than 4%. As of press release, it was down 4.09% to HK$1.64, with a turnover of HK$36.1864 million.
According to the news, COFCO Jiajiakang previously announced the results. The company's revenue in 2023 was about 11.568 billion yuan, down 10.3% from the previous year; before the fair value of biological assets was adjusted, the profit attributable to the company owner was about 51.138 million yuan, and the loss due in 2022 was about 320 million yuan. It is worth noting that the fair value of the company's biological assets was 2.202 billion yuan at the end of 2023 and 3,063 billion yuan at the end of 2022.
Everbright Securities believes that the current inflection point in pig prices has arrived. As the contraction in the number of newborn piglets since October '23 is in place, it is expected that commercial pig sales will continue to shrink in April, supporting the gradual upward trend in pig prices. However, the current financial pressure on the industry is still increasing. Based on the analysis of pig companies' sales in the past six months, it is expected that the debt ratio of some pig companies will continue to grow in 23Q4 and 24Q1. In a situation where the balance ratio is high, the financing environment will deteriorate further, and the industry's balance sheet will converge more and more significantly. It is not ruled out that production capacity will continue to be eliminated in the face of rising pig prices.