Domestic animal health firms witness share price surge as China displays economic vigor
17:04 PM | October 15, 2020 | Joseph Harvey
Shares in China’s leading animal health business recently climbed to their highest ever valuation on the Shanghai Stock Exchange.
China Animal Husbandry Industry Company (CAHIC) saw it shares peak at around CNY20.50 ($3.00) each last month. The firm has been publicly listed since 1999.
According to Bloomberg data, China's stock market value has hit a record high of more than $10 trillion on the back of the country's strong economic recovery during the COVID-19 pandemic. The data shows China's stock market is the second largest in the world, behind that of the US ($39 trillion).
This current peak takes the total value of China’s stock market past its previous high in 2015—a time when the country witnessed an equities bubble. 2015 also marked the last time CAHIC’s shares were valued higher than CNY15 each.
CAHIC has shown resilience in the face of COVID-19 and African swine fever (ASF). In 2019, the firm’s revenues dropped 10%. This was a much smaller dip than Jinyu Group—China’s second-largest animal health company—and other major domestic players.
Other leading Chinese animal health firms on the Shanghai Stock Exchange such as Jinyu Group and Pulike Biological Engineering have also witnessed strong share prices recently.
Jinyu's stock valuation reached an all-time high of around CNY31 each in August. The firm's share price has been climbing steadily this year, despite it reporting a major impact from ASF on it 2019 financials. In September, Pulike's valuation eclipsed CNY30 per share for the first time since 2015.
In addition, Tianjin Ringpu Bio-Technology’s shares climbed over CNY27 for the first time in the firm’s 10 years as a listed entity on the Shenzhen Stock Exchange.