Clenbuterol Affects Revenue Of 1 Billion 340 Million &Nbsp; Shuanghui Development Is Now Facing The Market Test.

The resumption of suspension after more than one month is now being tested by the "Shuangshang" development of lean meat poisoning. The different judgments and standards of investors in different events will be fully reflected in the company's share price movements.

At the end of 3 this year, the Ministry of agriculture gave a conclusion on the pig lean meat extract incident in Henan. It was said that the "lean meat essence" case in Henan was caused by a few people in some counties and cities who were aware of the prohibition of illegal production, sale and use. The illegal use of lean meat essence was only an isolated phenomenon.

In the announcement issued today, Shuanghui development first explained the matter of its injection of assets - Jiyuan Shuanghui into the "lean meat pig".

Shuanghui development indicated that due to the fact that some employees of Shuanghui of Jiyuan did not fulfill their responsibilities in carrying out the above testing system, a small number of live pigs with lean meat essence were inflow into Jiyuan factories. Subsequently, the detection results of Shuanghui products in Jiyuan also showed that the lean meat extract incident should be a case.

According to the company introduction, Jiyuan Shuanghui produced 75 kinds of product specifications, such as Lao Tang ham, elbow flower ham and so on, after the special inspection of "lean meat essence" item, no "lean meat essence" was detected.

As of March 31st, Shuanghui group had received 338 product inspection reports from 20 law enforcement agencies nationwide, which showed that "lean meat extract" was not detected in chilled meat and meat products.

Although Shuanghui has launched the remedial measures such as lean meat extract online and one by one detection after the incident, the incident has an impact on Shuanghui products sales.

After the confirmation of Shuanghui development, since March 15th, due to the "lean meat essence" incident, some shopping malls, supermarkets and special shops selling Shuanghui products in some districts have seen the situation of the products going off the shelves. In March alone, the business income of Shuanghui group is expected to be 1 billion 360 million yuan, which affects 1 billion 340 million yuan of Shuanghui development business income (including the sales revenue of Shuanghui group).

Since March is the off-season for meat sales, the impact of this incident on the short-term performance of Shuanghui development is not significant.

The company expects net profit of 265 million to 270 million yuan in the first quarter, up 10% to 12.5% over the same period last year (according to the accounting standards of companies), and the basic earnings per share from 0.4373 to 0.4455 yuan, but the net profit growth in the first quarter decreased compared with the normal level in the same period of the previous year. The company's net profit in the first quarter was 9 yuan.

Shuanghui development also indicated that Shuanghui group and listed companies will also push ahead with major asset restructuring efforts and maintain communication with regulators in view of the progress of Jiyuan Shuanghui's further investigation.

At the same time, the company will take positive measures to restore production and operation, and concerned about the impact of the incident on asset restructuring to be injected into assets valuation value.

However, in the eyes of investors, the most concern is the stock price trend of Shuanghui development.

Looking back at Shuanghui's share price performance before the suspension of trading, institutional investors have divided their valuation. The first five seats on sale and purchase amount in March 15th are institutional seats. With the gradual clarity of events, investors' re understanding of Shuanghui development will be directly against the stock price.

By summarizing the stock price trend of dairy stocks after the "Sanlu incident", the research institutions generally believe that if Shuanghui has a big fall after the resumption of its development, there will be some investment opportunities.

Guotai Junan said, Shuanghui development this year to fulfill the 3 yuan / share performance promise is more likely, and if the stock price fell to less than 65 yuan, it is very attractive.

As a matter of fact, since there is an offer price of 56 yuan / share, it is unlikely that there will be a continuous drop in Shuanghui development share price.

Shuanghui development announced in November last year that Xingtai group replaced Goldman Sachs and CDH as the actual controller of listed companies through overseas equity changes, and will fulfill the offer obligation with 56 yuan / share.

It is worth mentioning that, although the actual controller changes and Shuanghui development of major asset restructuring at the same time, but the two independent operation, is not a prerequisite for each other.

This setting means that even if Shuanghui's overall listing plan is to be stranded in the future, if the company's share price falls below 56 yuan, investors can choose to buy and complete the risk-free arbitrage through the tender offer, which will also form a strong support for the company's stock price.