China Xiangtai Food: 5 Things for Potential PLIN Stock Investors to Know


China Xiangtai Food (NASDAQ:PLIN) is looking for some time in the spotlight on Wednesday. In fact, PLIN stock is up more than 30% in intraday trading. But without any company press releases or U.S. Securities and Exchange Commission filings, what is the hype all about?

Two smiling piglets look into the camera.

Source: Shutterstock

First, it would be helpful for investors to know exactly what China Xiangtai Food is all about. The company, as its name implies, focuses on the Chinese market. There, it is one of the top companies that slaughters, processes and packages different pork products.

Although there is not a lot of news Wednesday, PLIN stock is still interesting to watch. Here are five things potential investors should know right now:

  • Besides pork, China Xiangtai Food also deals with beef, lamb, chicken, duck and rabbit meat.
  • China Xiangtai then divides its products into two categories, fresh and processed. This means it also sells things like shredded types of meat.
  • The company has been around since 2018, and calls Chongqing its home. However, like with some other Chinese companies, it is actually incorporated in the Cayman Islands.
  • Although it already deals with many other steps in the supply chain, China Xiangtai decided to further expand. In August, it announced it would launch a franchise of hot pot restaurants. The first opened at the end of the month in Chongqing.
  • Importantly, some of the excitement today may have to do with the recovery of the Chinese pork market.

PLIN Stock and the African Swine Fever

Although some tasty pork products and a good hot pot restaurant are exciting, why is PLIN stock so hot on Wednesday? One reason may very well be the fact that the pork market is recovering in China.

Investors likely know that China has been experiencing what some have called a pork crisis. Starting in August 2018, farmers found African swine fever near the Russian border. Since then, it expanded to all 31 mainland provinces and required those in the agriculture industry to undertake massive livestock culling. In turn, that led pork prices to jump — as high as 50%.

Factor in the U.S.-China trade war, which limited supply of American pork, and the novel coronavirus, which further reduced international meat supply, and there was definitely a crisis. Remember in the earlier months of the pandemic? Companies like Smithfield and JBS (OTCMKTS:JBSAY) warned that between demand from the U.S. and China, there may be a dangerous shortage of pork.

While we are past those days, it is a big deal to hear that the Chinese pork market is recovering. At the beginning of October, one report suggests the pig herd is “rebounding rapidly.” Another says that China is once again targeting 95% self-sufficiency for its pork supply. For China Xiangtai Food, that sounds like a whole lot of demand for its various fresh and processed pork products.

As of today, much of the news is speculation. However, if these reports are accurate, PLIN stock could very well be a name to keep on your radar.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that’s writers disclose this fact and warn readers of the risks. 

Read More: Penny Stocks — How to Profit Without Getting Scammed 

On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Sarah Smith is a Web Content Producer with 

Article printed from InvestorPlace Media,

©2023 InvestorPlace Media, LLC