Beijing Business Daily (Reporter Meng Fanxia and Liu Yuyang) began to come out with endless calls. On February 21, the “Opinions of the Central Committee of the Communist Party of China and the State Council on Comprehensively Promoting Rural Revitalization and Accelerating Agricultural and Rural Modernization”, which is the No. 1 Central Document issued in 2021. Looking back at the beginning of the year to date, the overall performance of the agricultural sector has been outstanding. Both industry indexes and thematic funds have achieved outstanding returns. Therefore, under the guidance of the “No. 1 Document”, whether the sector can continue to be strong in the future, and the net value of thematic funds will increase. Has received much attention. From the perspective of industry insiders, this document involves multiple sub-sectors of agriculture, and focuses on favoring the planting industry chain. Looking ahead, agricultural modernization is promising, and the agricultural sector also has long-term configuration value.
On February 21, the 2021 Central Document No. 1 was officially issued. It is not difficult to see from the goals and tasks proposed in this document that requirements are set for the structural reform of the agricultural supply side in 2021, the sown area and output of grain, the development of the pig industry, the quality of agricultural products and the level of food safety, etc., while also emphasizing that farmers’ income growth must continue Faster than urban residents. In addition, the document specifies requirements for accelerating agricultural modernization, developing high-quality forage feed, stabilizing soybean production, and developing cattle and sheep industries.
In fact, before and after the release of the Central Document No. 1 in the past years, it has become an important time for the A-share market to deploy the agricultural sector. In the eyes of industry insiders, the relevant requirements revealed in the document content also indicate the direction of investment in the agricultural sector during the year. . Therefore, after the issuance of the No. 1 Document in 2021, what kind of impact it will have on the agricultural sector and the agricultural theme fund that focuses on the layout of relevant markets has also attracted much attention.
A market analyst in Shanghai pointed out that this year’s Central Document No. 1 mainly involves sub-sectors such as planting seed industry, livestock and poultry breeding and feed animal protection in the secondary market. From a personal point of view, there may be greater opportunities in the feed animal protection industry. Since this sub-industry is a post-cyclical industry in the large agricultural sector, the industry boom cycle generally lags the breeding cycle. Entering 2021, the boom of the feed animal protection sector is expected to continue the upward cycle. However, the analyst also admitted that since the beginning of the year, the agricultural sector has seen a relatively prominent rise, so the subsequent layout opportunities remain to be seen.
As the analyst said, according to the Shenwan First-Class Industry Index, as of the close of February 22, the agriculture, forestry, animal husbandry and fishery industry index has risen about 16.82% this year, ranking third among 28 industry indexes. Second to the non-ferrous metal industry and chemical industry index. At the same time, some agricultural theme funds also had a good performance during the year.
Flush iFinD data shows that as of February 19, since this year, the net growth rate of Qianhai Kaiyuan Shanghai, Hong Kong and Shenzhen agricultural theme selection flexible configuration mixed funds is about 19.47%, which is an average of 7.22% compared to the flexible configuration mixed funds under the secondary classification. The rate of return exceeds 12.25 percentage points. In the same period, the three common stock funds of Yinhua Agricultural Industry Stock, Harvest Agricultural Industry Stock and Cathay Pacific Agricultural Stock also achieved returns of 15.32%, 13.49%, and 11.11%, which are all higher than the average performance of 10.33% of the same category.
Regarding the benefits of the sub-industry, in the opinion of Essence Securities analyst Zhou Tai, the introduction of the No. 1 document will bring many benefits to the planting industry chain. It is recommended to focus on planting the targets of the entire industry chain. At the same time, the No. 1 document may release an important signal to further increase the industrialization of agricultural genetically modified organisms. The commercialization of genetically modified staple foods in the country is expected to accelerate. Currently listed seed companies are at a low performance point, and related seed companies are expected to take advantage of the policy wind. Come to “Davis Double Click”. In addition, companies with large pig production capacity and rapid restocking are expected to continue to release their performance. It is recommended to focus on leading pig companies.
It should be noted that although the overall performance of the agricultural sector has been steadily improving since the beginning of the year, the recent A-share market has continued to fluctuate, which has also caused some investors to worry about the subsequent trend of the sector and the net value of related themed funds. According to Wang Shuai, fund manager of Yinhua Agriculture 50ETF, in the short term, prices of multi-category agricultural products are strong, corn purchase prices in many places have risen, and domestic soybean meal has followed the strong trend of US soybeans, and quotations have risen. Corn soybean meal is the main raw material of feed. Since 2021, the price of feed has risen many times, which has significantly increased the cost of breeding and supported the price of livestock and poultry meat. In the multi-category agricultural product price boom, inflation expectations have risen, and the agricultural sector has good investment opportunities.
In addition, from a mid- to long-term perspective, in terms of breeding, my country’s live pig production capacity has been recovering slowly. It is expected that pig prices will remain at a relatively high level from 2021 to 2022. Group companies with leading cost management will be in a stage of high profits and their long-term growth value will be outstanding. In terms of planting, under the general theme of “food security”, the planting industry chain is expected to be booming. Transgenic technology reform is a huge opportunity for the seed industry, which is expected to increase industry concentration; increasing farmers’ enthusiasm for planting is expected to drive demand for agricultural materials such as compound fertilizer. At present, my country’s agricultural production efficiency still has room for substantial improvement, and agricultural modernization is promising, and the agricultural sector has long-term configuration value.Return to Sohu to see more
Editor:
–
Disclaimer: The opinions of this article only represent the author himself. Sohu is an information publishing platform. Sohu only provides information storage space services.
.
