The rising star of breeding. Aonong Biology was founded in April 2011 as an agricultural and animal husbandry enterprise with pig feed as its main industry. Since 2014, the company has gradually extended the industrial chain to the pig breeding industry, and the breeding volume has been expanding. In 2021, the company sold 3.2459 million pigs, an increase of 141.1% over the same period last year. At present, the company is in the critical stage of the second venture, the company implements the "feed + pig raising" double main business development strategy, and strives to enhance the value of the pig industry chain and create the integrated management advantage of the industry chain.
Pig farming has entered the investment harvest period. At present, the company has a complete self-breeding system. At the beginning of March 2022, the company's sow stock reached 320000, and at the end of February 2022, the total stock of live pigs was 1.8328 million, an increase of 56.9% over the same period last year. 1) in terms of fattening capacity, due to the top-down expansion of pig production capacity in the early stage of the company, the current fattening structure is mainly piglets, with piglets accounting for 67% and fattening pigs accounting for only 26% in the first half of 2021. In the future, the proportion of fattening pigs will gradually increase, and the company's future fattening matching rate target is 2022,2023 and 2024. 2) in terms of cost, as the company is currently in the supporting and advancing stage, the overall cost has not reached the ideal state, but the cost of piglets in part of the sow farm that has been fully produced has reached 350 yuan per piglet. the complete cost of the breeding unit in the stable production stage has reached about 16 yuan / kg.
With the release of production capacity, the strengthening and replication of cost reduction measures, the company's future costs have more room for improvement.
Feed business is full of new vitality. The company started its business as pig feed in 2011. At present, the feed products cover pig feed, poultry feed, aquatic feed, ruminant and other categories. At present, the company's feed production capacity is about 7 million tons. In the first half of 2021, pig feed accounted for 59.8% of the company's total sales structure, poultry feed accounted for 28.1%, and aquatic feed and other feed accounted for 12.1%. Under the pain of the decline in pig feed sales caused by non-plague in 2019, the company chose the opportunity to expand the sales of poultry and aquatic products, and the sales volume increased rapidly. After 2 years of low gross margin hit the market, the company's poultry feed business has begun to take shape, gross profit margin has significantly reversed, the future non-pig feed products will become the new momentum of the company's feed sector performance growth.
With the gradual release of the company's production capacity, it is estimated that the production volume in 2021-2023 will be 324.6 million picks, an increase of 141.1%, 84.8% and 33.3% respectively over the same period last year. It is estimated that the company's home net profit from 2021 to 2023 will be-11.78 million yuan, respectively, compared with the same period last year, and the year-on-year net profit will be-305.7%, 61.6%, 458.9%, respectively. Considering that some comparable companies in 22 years are still in an abnormal state, and the 23-year cycle has rebounded, the company's performance has returned to normal, so it is given 11xPE according to the 23-year level, with a target price of 26.07 yuan, and a "Buy" rating for the first time.
Risk tips: epidemic risk, pig price fluctuation risk, cash flow risk, raw material price fluctuation risk, food safety risk and so on.