These days, $Makihara shares (SZ002714)$ fascinates me, I will never buy, but definitely curious!
Since last year, the line of pig farming, Shepherd Plains most profitable. However, the company’s fixed assets column, almost equivalent to sales revenue. Pig farming is really an asset-heavy business! After reading the financial reports of several other pig companies, their fixed assets/sales revenue ratio is much lower than Makara.
I can only think that since last year, Shepherd Plains may not have earned real money from raising pigs, but the people who built the pens must have made a lot of money.
I have read the annual report and interim report of Shepherd Plains, but the detailed financial report can not confirm anything, nor can it prove anything.
I was surprised to see some figures this morning.
As of the company’s 2020 third quarter report, equity attributable to shareholders of the parent company 43.834 billion yuan, net profit 20.988 billion yuan, the first three quarters, the return on net assets of 47.88%, the whole year run to 70%. The asset-heavy pig industry has really become a profitable professional.
The problem found today, but the minority interests column. As of the company’s 2020 third quarterly report, minority interest was 14.978 billion yuan, and in the 2019 third quarterly report, it was still only 1.486 billion yuan. However, the 2020 third quarter report shows that the net profit attributable to minority shareholders is only 2.094 billion yuan, and the return on net assets is 13.98%.
In the same consolidated statement, the difference between the two NPAs is three times, which is too disparate! The minority shareholder, who has the right Time, the right place and the right people, is doing a partnership business with Makara, which is not very profitable. Is Makara really a living lightning rod for public shareholders?
I’m not interested in studying who these minority shareholders are. Investors who see a great future for Makara should try to look deeper.
In general, I feel that since last year, it is the people who built the pigsties for Makara that have really made the big money.
A shares over the years, watching the show, have been numb. Remember, when the unbeatable LeTV, is through the annual loss of minority shareholders profit and loss to highlight the profitability of listed companies! Just at present, the pastoral market value has dried up to 400 billion yuan. If there is really lightning, inflated net profit of 1 billion yuan, I’m afraid it is far from hit!
A little questioning, for your reference. Usually, not common sense and logic of things, often also have its deadly place
Risk warning: the views mentioned in this article represent only personal opinions, the subject matter involved is not recommended, according to which you buy and sell at your own risk.
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