On May 5, the three major A-share indexes closed with mixed gains. The Shanghai Composite Index rose 0.68%, the Shenzhen Component Index rose 0.23%, and the ChiNext Index fell 1.33%. On the market, the large agricultural sector rose sharply, switching funds, corn, and soybeans.
, seed industry, animal husbandry and other topics were active, and concept stocks "continuously rose".
As of the close, Nongfa Seed Industry, Wanxiang Denong, and Stanley rose by the limit, Dunhuang Seed Industry rose by more than 8%, Tsuen Yin Hi-Tech, Xinnong Development, Fengle Seed Industry, etc. increased by more than 6%; the concept of pork also strengthened, Longda Food
At the daily limit, Aonong Biotechnology, Lihua Shares, Superstar Agriculture and Animal Husbandry, etc. followed suit.
In terms of news, the Ministry of Agriculture and Rural Affairs released the "2022 Agricultural Genetically Modified Organisms Safety Certificate (Import) Approval List (1)", and projects submitted by Bayer Crop Science, Corteva, BASF, etc. were approved; the "2022 Agricultural Genetically Modified Organisms Safety Certificate (Import)" was released.
(Production and Application) Approval List (1)》Projects applied by Hangzhou Ruifeng, China Seed Group, etc. were approved.
In fact, as early as 2019 to 2021, domestic corn and soybean varieties have been continuously approved for agricultural genetically modified organism safety certificates.
Now with the implementation of a new batch of genetically modified organism safety certificates, my country's genetically modified organisms have taken a further step from the experimental stage to the commercialization stage.
Chen Jia of Changjiang Securities said that the insect-resistant genes inserted into the transformants of corn varieties that have obtained safety certificates in my country are mainly Cry1 and Cry2, while the herbicide-resistant genes are all epsps and pat.
Domestic genetically modified products are still in their early stages, and there is still room for improvement in the richness of their trait stacks and shelter facilities. Leading companies with rich reserves of safety certificates may gain first-mover advantages in the early stages of commercialization.
Grain prices are high and the performance of seed industry companies is outstanding. According to past experience, the first quarter is the late stage of the seed sales season, and the revenue and profit volume in previous years is generally low.
However, this year, with high grain prices and boom, downstream planting enthusiasm has increased, and many seed companies have performed well in the first quarter.
According to wind data, among the seed industry companies that have disclosed their first-quarter results, 9 companies have experienced significant net profit growth.
Among them, Nongfa Seed Industry's net profit grew the fastest, up to 45 times; Tsuen Yin Hi-Tech was also not bad, with net profit increasing more than 10 times year-on-year.
In addition, the continued rise in grain prices has increased farmers' enthusiasm for planting. Due to the high planting boom, the performance of related companies has also achieved good growth. For example, the first quarter net profit of representative planting company Suken Nongfa increased by 15.04% year-on-year, and the net profit of compound fertilizer leader Xinyangfeng increased by 15.04% year-on-year.
The growth rate was 24.14%.
However, in comparison, life for downstream animal husbandry enterprises is not easy.
According to wind data, most animal husbandry companies reported losses in the first quarter, especially pig companies.
Overall, due to the continued downturn in pig prices, the performance of pig companies in 2021 has turned from profit to loss year-on-year. Moreover, under the dual drag of sluggish pig prices and rising feed prices in the first quarter of this year, listed pig companies were "annihilated."
Among them, the "leading stock" Muyuan Co., Ltd. lost 5.18 billion yuan in the first quarter, with a profit of 6.963 billion yuan in the same period last year; Wen's Co., Ltd. lost 3.763 billion yuan in the first quarter; Zhengbang Technology also lost 2.433 billion yuan in the first quarter, which is currently the largest loss.
Listed pig companies.
Public funds heavily support my country. As the world's second largest seed country, the size of the seed industry market is close to 100 billion yuan. However, the independent innovation level of the seed industry is still far behind that of developed countries. For this reason, my country has provided a lot of support for the revitalization and development of the agricultural industry.
In 2021, my country formulated the "Seed Industry Revitalization Action Plan" to focus on the discovery and utilization of excellent germplasm resources, strengthen core research on germplasm, and industrial application of biological breeding (such as genetic modification); in March this year, my country's "New Seed Law" "With the official implementation, the intellectual property rights of the seed industry are protected by law, and the industry's breeding technology has achieved innovative breakthroughs.
Under the influence of many favorable policies, the popularity of the large agricultural sector has been rising, and the effect of public funds' increasing holdings has been obvious.
According to the latest position data (first quarter of 2022), the total number of heavy holdings in the agricultural sector increased by approximately 77.1% in the first quarter compared with the fourth quarter of last year.
Looking at the sector segments, the heavy holdings in the planting sector are on an upward trend, and the proportion of the total market value of heavily held stocks in 2022Q1 increased by 0.05% month-on-month. However, there is still much room for improvement compared to the proportion of holdings in the industry's high prosperity from 2016 to 2017.
Secondly, the market value of the livestock and poultry breeding sector, feed sector, animal health sector, and agricultural product processing sector in 2022Q1 accounted for 0.57%, 0.19%, -0.01%, and -0.001% respectively.
Looking at individual stocks, growth stocks Muyuan Shares and Haid Group have a solid position in the rankings of heavyweight positions, and their market recognition is further highlighted; in addition, Huatong Shares, Meihua Biotech, New Hope, Superstar Agriculture and Animal Husbandry, Nongfa Seed Industry, Tangrenshen, and Tianbang
The total shareholdings of funds such as Aonong Biotech, Muyuan Shares, Wen's Shares, and New Ng Fung increased significantly month-on-month.