Muyuan's Shares Hit 52-Week High After Profit Gains 11-Fold on China Pork Prices
Xu Wei
DATE:  Feb 27 2020
/ SOURCE:  yicai
Muyuan's Shares Hit 52-Week High After Profit Gains 11-Fold on China Pork Prices Muyuan's Shares Hit 52-Week High After Profit Gains 11-Fold on China Pork Prices

(Yicai Global) Feb. 27 -- Muyuan Foodstuff's stock price reached a 52-week high today after the Chinese hog breeding giant said profit jumped almost 11 times last year as pork prices in China spiraled because of the devastation African swine fever wrought on the country's pig herds.

Muyuan's shares [SHE:002714] rose as much as 6.4 percent to CNY123.40 (USD17.59) before closing 2.2 percent higher at CNY118.60. The stock has gained 165 percent in the past 12 months.

Net profit was CNY6.11 billion (USD871 million) in the 12 months ended December on a 51 percent increase in revenue to CNY202.21 billion, the Henan province-based company said in an earnings report published yesterday.

Hog prices set record highs last year. Pork prices almost tripled through 2019 to CNY33.53 a kilogram on Dec. 27, according to China commodities data provider SunSirs. Muyuan brought 10.25 million live hogs to market.

The ongoing effects of the swine fever epidemic induced tension in the supply of live hogs to the market, the company said in the report. That sent prices soaring, greatly swelling its earnings.

Muyuan also cited the continuing improvement and upgrade of its biosafety hardware infrastructure, added investment in it, and increased outlays on prevention and control, as well as enhanced production efficiency, all of which ensured the healthy growth of its pigs, while it also streamlined its production during the reporting period.

The company plans to fatten and market 17.5 million to 20 million animals this year, it said. 

Editor: Ben Armour

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Keywords:   Pig-breeding,Muyuan Foods