\u3000\u30 Zhongyan Technology Co.Ltd(003001) 19 Tianjin Ringpu Bio-Technology Co.Ltd(300119) )
Event:
Tianjin Ringpu Bio-Technology Co.Ltd(300119) released the annual report for 2021: during the reporting period, the total operating revenue of the company was 2.007 billion yuan, an increase of 0.34% year-on-year, and the net profit attributable to the parent company was 413 million yuan, an increase of 3.66% year-on-year, basically in line with expectations.
Key investment points:
The downstream breeding market was depressed, and the company's revenue performance maintained a slight increase. During the reporting period, the company achieved a total operating income of 2.007 billion yuan (year-on-year + 0.34%), and the net profit attributable to the parent company was 413 million yuan (year-on-year + 3.66%).
① the company's annual revenue increased slightly. From the perspective of revenue of various sectors, the overall revenue of poultry business was 1.34 billion yuan (year-on-year + 2.1%), the revenue of poultry vaccine was 910 million yuan (basically the same year-on-year), and the revenue of poultry drugs was 430 million yuan (year-on-year increase of 20.3%); The overall income of livestock business was 420 million yuan (year-on-year + 22.3%), the income of livestock drugs was 270 million yuan (year-on-year + 46.5%), and the income of livestock vaccines was 150 million yuan (year-on-year flat); The overall revenue of API business was 215 million yuan (a year-on-year decrease of 32%), mainly due to the shutdown and relocation of the API workshop of Longxiang pharmaceutical due to environmental protection requirements during the reporting period, and the production capacity of new API has not been released. At present, the new plant has been fully put into operation, which can contribute to the annual output value of API of 800-1 billion yuan; Other veterinary preparations achieved an income of 730 million yuan (year-on-year + 28%).
② affected by the downturn of downstream breeding market, the operating cost of the company increased and the performance maintained growth. During the reporting period, the annual operating cost of the company was 970 million yuan, with a year-on-year increase of 5.22%, mainly due to the increase in the cost of raw materials caused by the rise in the prices of API and bulk commodities in the upstream industry during the year; The annual sales and management cost was 530 million yuan (year-on-year + 1.47%), mainly due to the company's increasing customer service investment in response to market competition; The R & D cost was 118 million yuan (year-on-year + 5.52%), which was mainly due to the increase in the cost incurred by the company in increasing the introduction of R & D talents and independent R & D projects and improving the competitiveness of products. During the reporting period, the company maintained the net profit attributable to the parent company through strategic changes, improving management ability, strengthening cost control, giving full play to the advantages of centralized procurement and increasing the share of key customers.
Adhere to the customer demand as the center, and establish a comprehensive technical marketing service mode of "high quality + reliability + strong service". During the reporting period, the downstream aquaculture industry as a whole was at a historically low level, the losses continued to intensify and the capital chain continued to be tense. The company adhered to the value of "customer-centered", resonated with the aquaculture industry at the same frequency, continued to increase R & D investment, promoted product iterative upgrading and process innovation, established a high-quality, diversified and full category product matrix, and actively established strategic cooperation with aquaculture customers, Under the condition of substantial increase in raw materials and labor costs, we always adhere to the principle of no price increase and no shortage of goods at the terminal, continuously improve the comprehensive epidemic prevention and control level of breeding enterprises through "cost-effective products + comprehensive epidemic prevention and control solution", meet the needs of the development of large-scale and intensive breeding mode of customers, and help breeding customers improve the epidemic prevention and control level and reduce breeding costs at the same time.
The strategic layout advantage of R & D pipeline began to highlight. During the reporting period, the company further strengthened the recruitment of R & D team, greatly improved the speed and quality of product innovation, and made a breakthrough in the independent R & D of new products. The company listed 21 new products in 2021. The new products focus on providing customers with prevention and treatment services in many fields, such as vaccine multi link and multi price, epidemic detection and diagnosis, breeding end anti-virus, feed end anti-virus, ruminant and pet drugs Prevention and control solutions such as treatment and diagnosis: avian vaccines such as Newcastle disease, infectious bursal disease and avian influenza (H9 subtype) triple inactivated vaccine to achieve one shot and three prevention; Livestock vaccines such as Haemophilus parasuis trivalent inactivated vaccine can prevent three epidemic serotypes of Haemophilus parasuis (type 4, type 5 and type 12) with one injection, supplemented by self-developed high-quality adjuvants, which can improve the continuous protection time of the vaccine in animals; The products of reducing resistance and replacing resistance, such as "Ruili peptide" and "Ruipu enzyme", can effectively reduce the anti nutritional factors in the feed, improve the feed utilization rate and reduce the feed meat ratio. They have great market potential under the continuous rising trend of feed price; Pet products such as "pettene" are pet insect repellent products with non pronone as the main component, which can be safely and widely used to kill insects on the body surface of dogs and cats and the environment.
The profit forecast and investment rating predict that the net profit attributable to the parent company from 2022 to 2024 will be RMB 475 / 64 / 709 million respectively, and the PE will be RMB 19.09/14.17/12.79/share respectively, maintaining the "buy" rating.
The risk indicates the risk that the company's performance is less than expected; Risk of epidemic situation in aquaculture industry; The risk of eliminating production capacity in the aquaculture industry; The risk of intensified market competition; Risk of drastic fluctuations in pig or poultry prices.
