not vested
COFCO MEAT(1610)
Analysis:
COFCO Meat`s business includes feed production, pig breeding, slaughtering, production and distribution of fresh pork and meat products, and import and sale of frozen meat products.
The company is one of the first companies in China to adopt large-scale pig farming. In the recently released CPI index data, pork prices rose by 69.3% year-on-year in September.
COFCO Meat released the 2019Q3 Operational Express:
1. Live pig production was 265,000 heads, down 60.4% year-on-year
2. Fresh pork sales were 35,000 tons, down 28.1% year-on-year.
Although the amount of live pigs fell sharply, in the third quarter of 2019, the company`s average price of commercial pigs was 22.22 yuan / kg, much higher than the company`s average pork price of 11.41 yuan / kg in the first quarter of this year and the average price of pork in the second quarter of 13.9 yuan. /kg.
It is expected that the performance of the company in the third quarter will be significantly better than the first half.
Strategy:
Buy-in Price: $2.80, Target Price: $3.60, Cut Loss Price: $2.30
Source: Phillips