August 15, 2019
Shares of New Hope continue to be lifted by rising swine prices
Analysts predict New Hope Liuhe's share price will rise to RMB23.70 (~US$3.37; RMB) over the next 12 months, a 30% jump above its current level. The stock has already surged 151% this year.
That is the consensus of analysts covering it and tracked by Bloomberg, the South China Morning Post reported.
The Shenzhen-traded stock is the third best performer on the CSI 300 Index this year, as the spread of African swine fever (ASF) forced culling of herds, driving up prices of pork and chicken, which New Hope also breeds.
The company said it sold 82% more pigs in July than a year earlier and average sales prices rose 28% to RMB15.84 per kilogram.
"The African swine fever (sic) is hard to be eradicated in the short term and pork prices are expected to hit a new high," said Wu Li, an analyst at Tianfeng Securities. "The company's rapid expansion of capacity will further strengthen its profitability in the sector."
Industry rival Muyuan Foodstuff's share-price estimates were lifted as well. The stock will rise to RMB81.29 in the next 12 months, according to the consensus forecast by analysts tracked by Bloomberg.