Jinyu Bio-Technology Co.Ltd(600201) (600201)
Event: the company announced that Jinyu Baoling biological drug Co., Ltd., a wholly-owned subsidiary of the company, recently received the invention patent certificate of "a gene deleted attenuated African classical swine fever virus strain and its construction method and application" issued by the State Intellectual Property Office of the people's Republic of China.
Obtained the invention patent of non plague vaccine, further demonstrating the company's R & D strength
The gene deleted attenuated African classical swine fever virus strain constructed by homologous recombination method is a gene deleted virus strain that simultaneously deleted cd2v, MGF (12L, 13L, 14L) and i177l gene fragments on the basis of type II African classical swine fever virus genome, which is significantly attenuated compared with the parent strain and will not affect the stable replication and immunogenicity of the gene deleted virus strain. After inoculating the experimental pigs, there will be no significant increase in body temperature, joint swelling, disease or death, and no viremia. It shows good safety and good immune protection effect. We believe that the acquisition of the invention patent is the result of the company's long-term investment in independent R & D and joint R & D, which will help protect the company's intellectual property rights and future relevant commercial interests, further stimulate the innovation enthusiasm of scientific researchers, improve the core competitiveness of the company's R & D platform, and consolidate the company's leading position in the animal protection industry.
The performance keeps growing against the trend, and the company has full operational toughness
In the third quarter, the company realized an operating revenue of 498 million yuan, a year-on-year increase of 3.02%, and the net profit attributable to the parent company was 161 million yuan, a year-on-year increase of 41.83%. Although the downstream aquaculture market continued to be depressed, which brought certain pressure to the sales of animal protection products, the company's revenue still maintained growth under the background of general decline in the industry. We believe that, on the one hand, the immunization of foot-and-mouth disease is relatively rigid. On the other hand, under the policy of "fighting first and then supplementing", the average price of pigs will increase after replacing the government's bidding procurement of vaccines with market-oriented vaccines. At the same time, the increase of the company's revenue share and market share of non foot-and-mouth disease pig vaccine products led to the increase of comprehensive gross profit margin, driving the improvement of profitability. We believe that with the improvement of downstream profits, the immunization program is expected to return to normal and the company's performance is expected to continue to improve.
Scientific and technological innovation drives independent R & D transformation, and R & D strength continues to increase
In terms of African classical swine fever vaccine, the company has completed the efficacy evaluation experiments of several groups of African classical swine fever mRNA vaccine, adenovirus vector vaccine and subunit vaccine, and achieved certain results. In addition, Chicken Marek's disease live vaccine (rmdv MS - △ mEq strain) and porcine circovirus type 2 and porcine Mycoplasma pneumoniae inactivated vaccine (recombinant baculovirus dbn01 strain + dj-166 strain) has obtained the new veterinary drug registration certificate. All subsidiaries are actively promoting the application for product approval number and application for approval. The independent research and development of Jinyu Gongli pet vaccine and the review of bacterial and virus species introduction are progressing steadily. We believe that the company has rich R & D pipeline and covers a variety of heavy products. With the continuous implementation of products, it will support the long-term growth of the company.
Profit forecast and investment suggestions
We expect that from 2021 to 2023, the company's net profit will be RMB 609 / 10.05 / 1.285 billion, a year-on-year increase of 50% / 65% / 28%, EPS will be RMB 0.54/0.89/1.14 respectively, and the corresponding PE will be 30 / 18 / 14 times respectively, maintaining the "buy" rating.
Risk warning: downstream epidemic risk; Product R & D risk; Risk of intensified market competition
