Why Huaying Agriculture Becomes a Leading Share

In the expectation that the policy will keep warming again, and the technical rebound will require double stimulation, the stock index will continue to attack more than 100 points in just five trading days. The two policies of urbanization and agricultural industrialization will benefit the beneficiary stocks and become the market’s main funds. Focus, among them, the trend of four-day daily limit of Huaying Agriculture, won the reputation of the first share of agricultural industrialization.

From the perspective of company fundamentals, the company is mainly engaged in breeding poultry breeding, poultry sales, poultry breeding, slaughter and processing, and production and sales of animal products, and feed processing. Currently, the company has a market share in the national cherry valley duck market. To reach 15%, starting from this industry advantage, the company is in line with the recent stock market direction in 2013 when the Central Document No. 1 focuses on the expected industrialization of agriculture. According to media reports, the basic spirit of the policy will probably be to insist on farmers as the main body of agricultural production and operation, and to innovate and develop the production and management forms such as professional large families, family farms, professional cooperatives, and agricultural industrialization. The company is currently the largest integrated production and sales enterprise in China that covers all aspects of hatching, breeding, slaughter and processing, and production and sales of poultry meat products in the Cherry Valley duck, which has effectively guaranteed product quality and effectively smoothed product risks. If the policy is expected to be honored, the company will usher in more development opportunities in the future, and the advantages of company scale, high quality of the entire industry chain, and cost advantages will be further demonstrated.

From the perspective of the K-line graph, the stock has faced many unfavorable conditions such as food safety this year. After the company was exposed to the sale of dead ducks in March for profiteering, the stock price fell sharply after a suspension of trading for a week. Afterwards, the trend has fallen all the way, with a slight rebound in the session. The formation of the trend, although it was oscillating sideways around 5 yuan once during September, but it was "involved" in the waste oil incident, it was eventually dragged down by the broader market and fell to around 4 yuan. However, the sharp drop in stock prices and the proper handling of food safety issues have not caused the stock market to flee during the downtrend. Even if the market breaks down with the broader market, there is still no panic selling. The important reason why stock prices have been continuously attacked on the back of favorable policy stimulus. The three quarterly reports show that some insurance funds and fund institutions are still sticking to the current situation. The company's executives also support stock prices by increasing their holdings. On September 7, the Shenzhen Stock Exchange disclosed that Dong Jiangao, Cao Jiafu, Li Shiliang, Yan Qun and Yang Zhiming purchased the company’s 1.89 million shares, 500,000 shares, 500,000 shares and 600,000 shares through large transactions on September 7. The average transaction price was 5.3 yuan/share. At the same time, from the perspective of performance, the company expects net profit attributable to shareholders of listed companies from January to December 2012 to be 5 to 10 million yuan, a year-on-year decrease of 88% to 94%. Compared with the situation of third-quarter performance loss, it has also become another factor that the market actively pursues the stock.

The agricultural industrialization policy is an important reason for the recent strengthening of agricultural stocks. From the initial agricultural machinery stocks represented by the One Tow shares to the industrialized and large-scale production of Huaying Agriculture, it shows that the main funds will be used in agriculture in the future. The pursuit of industrialization concept stocks. However, the author believes that due to the policy short-term is difficult to reflect the performance growth, the current stocks continue to rise, but the performance of the previous oversold bounce and policy incentives to rise, the market outlook for the short-term stocks continue to rise little, it is recommended investors should not Overly chasing high interventions, pending the implementation of policy expectations, and the decisive turning point of the stock's performance growth, the intervention of the midline is not too late.