Investment & Finance.
Wen Xiangxin. The difficulty of the industry is, in the final analysis, the difficulty of the enterprises in the industry. According to the calculation of "Finance Eleven", among the top ten industries with the most difficult operation in 2023, the pig breeding industry ranks second, with a difficulty of 100%, second only to the private real estate industry.
Industry data shows that when pork is lower than feed by 4At 5 times, even the most efficient businesses lose money. The data shows that in the first half of 2023, pork ** will be at 45 times the feed ** below. In the first half of 2023, the pig industry will generally lose money, and the industry will be 100% difficult. It is in this situation that the company with pig feed as its main product, Anyou Biotechnology Group Co., Ltd. (hereinafter referred to as Anyou Bio) recently submitted a prospectus to apply for listing on the main board of the Shenzhen Stock Exchange.
According to the prospectus, Anyou Biotech will issue no more than 70 million shares in this IPO, and the number of shares issued will account for no less than 10% of the company's total share capital after issuance. In terms of the use of the raised funds, the total investment of Anyou Bio's proposed investment project is about 113.8 billion yuan, and plans to invest about 110.4 billion yuan.
Anyou Biotech is mainly engaged in the research and development, production and sales of feed, and is a high-tech enterprise focusing on animal precision nutrition. Its products mainly cover pigs, poultry, aquatic products and ruminant feed, of which pig feed is the main product. In addition to the above-mentioned feed products, Anyou Biotech has also extended upstream and developed functional feed raw materials and additives and other related products.
During the reporting period, the operating income of Anyou Biotech was 725,313350,000 yuan, 1,084,271$260,000 and $1,149,520560,000 yuan, showing a year-on-year growth trend;Its net profit was 53,157200,000 yuan, 38,701$450,000 and $27,446790,000 yuan, showing a trend of increasing income but not increasing profits.
According to Xiaocai Mier, the cost of breeding is an important factor in its increase in income and not profit, first of all, feed is the main component of the cost of breeding, and feed has been running at a high level;Secondly, the maintenance cost of the breeding environment and equipment is also rising, including the purchase and maintenance of feed equipment and pig house equipment. Affected by the combination of these factors, Anyou Biotech will not be easy in any case, and its IPO road is not destined to be smooth.
Accounts receivable are high, and the comprehensive gross profit of feed continues to decline
At the end of the reporting period, the carrying value of accounts receivable was 32,011170,000 yuan, 38,573$570,000 and $41,990870,000 yuan, accounting for the proportion of current assets81% and 1822%, the gradual growth trend is highlighted.
During the reporting period, the bad debt provisions of Anyou Bio's accounts receivable were 6,927780,000 yuan, 10,363980,000 yuan and 8,065270,000 yuan, and the overall accrual ratio is .18% and 1611%。Among comparable companies in the same industry, New Hope is17%, brand new agricultural for25%, and the industry average is .20%。Obviously, in this regard, Anyou Biotech has shortcomings.
Xiaocai Mier found that the turnover rate of accounts receivable of Anyou Bio was22, compared to the industry average of35. The accounts receivable turnover ratio of Anyou Biotech is far lower than the average of comparable companies in the same industry. In this regard, Anyou Bio's explanation is that, generally speaking, the sales model of the pig breeding business is mainly cash spot, so the accounts receivable of the pig business are less, and the accounts receivable turnover rate of comparable listed companies in the same industry with a larger pig breeding business is higher. The business of Anyou Biotech is mainly based on feed sales, so the accounts receivable turnover rate is relatively low. Tsk, this is too big to make people empathize.
Obviously, there is a soft underbelly in terms of feed. According to the analysis of industry insiders, if the comprehensive gross profit margin of a feed company is observed from the perspective of gross profit margin, the two most critical factors are to observe the changes in the material structure and the cost structure, the core of which lies in the changes in the structure of different feed formula products and the cost structure of their formulas.
Feed, feed, that's the point. In this regard, Anyou Bio is extremely weak - during the reporting period, the comprehensive gross profit margin of Anyou Bio's feed was05% and 832%, showing a downward trend. According to industry insiders, this is mainly because, from the perspective of material structure, the proportion of revenue from high-gross margin products such as pig premix, pig concentrate and pig compound has shown a downward trendFrom the perspective of the gross profit margin of the same material type, due to the growth of corn and soybean meal during the reporting period, the gross profit margin of most material products showed a downward trend.
Xiaocai Mier believes that in the face of high accounts receivable and declining comprehensive gross profit margin, Anyou Bio's primary efforts are to control costs and improve efficiency, including optimizing feed formulation, improving feeding management, and reducing morbidity and mortalityIn addition, Anyou Biotech needs to take active measures to control financial risks and reduce operating pressure;In addition, Anyou Bio should also strengthen risk management and seek policy support, and establish a sound risk management system, including pig risk management, epidemic risk management, etc.;At the same time, let's not forget that various measures such as agricultural insurance and pork reserves are also essential.
Subsidiaries have been repeatedly fined and are keen to provide guarantees
While "catching fire" for the feed sector, the "backyard" of Anyou Biotech is also not peaceful. For example, Shandong Anyou, a subsidiary of Anyou Biotech, was fined RMB 316,780 by the Gaomi Municipal Comprehensive Administrative Law Enforcement Bureau in August 2021 for occupying 13,154 square meters of collective land of Tangjia Village Village Committee, Xianjia Community, Jiangzhuang Town, Gaomi CityIts subsidiary, Chongqing Anyou, was fined 30,000 yuan by the Chongqing Rongchang District Market Supervision and Administration Bureau in March 2022 for using unregistered and uninspected special equipmentIts subsidiary, Zhejiang Anyou, was fined 300,000 yuan by the Longyou County Emergency Management Bureau in April 2022 for failing to fulfill the responsibility of production safety guarantee for production and business operation unitsIn October 2022, its subsidiary, Nantong Anyou, was fined RMB 15,178 by the Nantong Emergency Management Bureau for failing to standardize the cleaning of dust in the production workshop in a timely manner and failing to complete the emergency materials specified in the emergency plan.
This series of fined cases, are the subsidiaries of Anyou Biology one after another, although the amount is a bit of a "drizzle" feeling, but the impact can not be underestimated, after all, the management and standardization of subsidiaries is never a trivial matter, the regulator should "look at it", but also "look at its own reason", iron also needs its own hard, you only need to be hard, but your subordinate enterprises are not "hard", that can not be said how "hard" you are, this derivative relationship must be well weighed by Anyou Biology.
Xiaocai Mier also learned that Anyou Biology is a "warm-hearted" person - during the reporting period, Anyou Biology or its subsidiaries cooperated with financial institutions such as Huai'an Branch of Shanghai Pudong Development Bank and Taicang Branch of Agricultural Bank of China to provide targeted loan guarantees for feed customers who meet the standards for many times, and the purpose of the loan funds is to pay for the feed of Anyou Biology.
Xiaocai Mier then paid more attention to the external guarantee of Anyou Biotech, and found that at the end of each period of the reporting period, the balance of Anyou Bio's external guarantee was 7,075150,000 yuan, 4,288940,000 yuan and 4,781910,000 yuan, which is indeed considerable.
It should be said that for the sake of business development and customer retention, it is not impossible for Anyou Bio to provide guarantees for its mature customers, but everything has a degree, even if the debt ratio of the guaranteed customers is not high, such guarantees can be controlled. You must know that for banks, if a company like Anyou Biotechnology issues a guarantee and bears joint and several liability, then its credit rating requirements for lenders will inevitably be artificially reduced - anyway, there are "big men" who bear the final repayment responsibility. In this way, the risk of default will be magnified, and the amplified risk will be borne by Anyou Biotech itself. However, can Anyou Creatures really afford it?According to Xiaocai Mier, the risk comes from both internal and external, such as the impact of African swine fever and other diseases, as well as market changes, which lead to some feed customers deferring loan repayment or unable to repay loans, which are obvious external risk factors.
According to Xiaocai Mier, Anyou Biology has also encountered the situation of "turning its face and denying it" by the guaranteed company, which is by no means an isolated case, and there will be similar situations in the future.
Anyou Biology, can it be regarded as a "pig enterprise saint fighter"?Hard.