\u3000\u30 Zhongyan Technology Co.Ltd(003001) 19 Tianjin Ringpu Bio-Technology Co.Ltd(300119) )
Key investment points
Performance summary: in 2021], the company achieved an operating revenue of 2.01 billion yuan, a year-on-year increase of 0.3%, and the net profit attributable to the parent company was 410 million yuan, a year-on-year increase of 3.7%. After deduction, the net profit attributable to the parent company was 280 million yuan, a year-on-year increase of 0.03%.
Comments: under the background that the losses of breeding enterprises continue to increase, the company operates steadily and develops steadily. During the reporting period, the poultry business achieved a revenue of 1.34 billion yuan, a year-on-year increase of 2.1%, and the income of poultry vaccine was 910 million yuan, basically the same as that in the past 20 years. The sales volume of live poultry vaccine was 20.55 billion feather, a year-on-year decrease of 1.45%, and the sales volume of inactivated poultry vaccine was 2.42 billion ml, a year-on-year decrease of 8%. This was mainly due to the impact of the replacement of biological strains in South China and the company’s initial operation of biological integration in South China. At present, the replacement of strains has been completed and the integrated operation of the company is, The revenue of poultry drugs was 430 million yuan, a year-on-year increase of 20.3%. The overall revenue of livestock business was 420 million yuan, a year-on-year increase of 22.3%, the sales volume of inactivated vaccine for livestock was 42.76 million ml, a year-on-year increase of 16.5%, the drug revenue was 270 million yuan, a year-on-year increase of 46.5%, and the vaccine revenue was basically the same as 150 million yuan. In terms of API, affected by environmental protection requirements, Longxiang Pharmaceutical Workshop stopped production and moved to the new plant, and the new production capacity has not been released. Therefore, the revenue is 220 million yuan, a year-on-year decrease of 32%. At present, the new plant has been put into operation, which can contribute 800-1 billion yuan to the output value of API. During the reporting period, the operating cost was 970 million yuan, with a year-on-year increase of 5.2%, mainly due to the impact of the rise in the prices of upstream APIs and bulk commodities. The company maintained profit growth by increasing the share of key customers, giving full play to the advantages of centralized procurement, strengthening cost control and improving management ability. The top five customers achieved a sales revenue of 200 million yuan, with a year-on-year increase of 112.6%.
The proportion of large-scale breeding has increased. In order to reduce costs and increase efficiency, enhance traceability and control risks, downstream breeding enterprises have a trend to reduce suppliers of animal protection products, and leading enterprises with rich products are expected to benefit from it. At present, the price of live pigs is about 12 yuan / kg, farmers continue to lose money, and the proportion of large-scale farmers in China continues to increase due to the long-term environmental protection requirements and the impact of African swine fever. The breeding group achieved cost reduction and efficiency increase and improved risk resistance through “breeding germplasm improvement + low protein diet technology exploration + epidemic prevention and control capability improvement + industrial chain connection”. At the same time, we will enhance the traceability of animal protection products and strengthen the willingness to accelerate the in-depth integration with large animal protection enterprises with the ability of biosafety system construction and comprehensive epidemic prevention and control. The company has a complete product matrix and can build an epidemic prevention and control system for key customers. Differentiated services can effectively improve the stickiness of group customers. The company continues to optimize the customer structure, strengthen cooperation with high-quality and standardized breeding enterprises, and create a foundation for strong cooperation. In 2021, the company’s direct sales model achieved an operating revenue of 1.17 billion yuan, accounting for 58.1%.
The company has rich product categories, layout of chemical medicine sector and enhanced growth. The company’s avian influenza (H5 + H7) trivalent inactivated vaccine ranks in the forefront of China’s market share; Porcine circadian type 2 inactivated vaccine and porcine infectious gastrodiarrhea vaccine have strong competitiveness in the market of pig biological products; In terms of veterinary chemicals, the immunity of livestock and poultry may decline after the “Prohibition of resistance”, and the demand for antibiotics will increase accordingly in case of diseases; In addition, the new version of GMP promotes the continuous improvement of industry concentration. The company’s products, such as tilmicosin enteric coated granules, long-acting crystal cefotaxifur injection, decaoquinate dry suspension and many other new veterinary drugs, are the first in the world, and the three single products of florfenicol, warnemolin and totrozuli rank among the top in the international market share. At the same time, the company raised 1.34 billion yuan by issuing shares to specific objects, the industrial scale continued to expand, and technological progress and upgrading were conducive to the long-term development of the company. The funds raised mainly include the international standard veterinary drug preparation automation factory construction project (RMB 200 million), natural plant extraction industrial base project (RMB 150 million), South China biological large-scale suspension culture workshop project (RMB 160 million), Zhongan biological reconstruction and expansion project (RMB 250 million), etc. It will help the company improve its independent R & D strength, enhance its innovation ability in the fields of genetic engineering vaccine and key core processes of vaccine, and the company’s development trend will be better in the long run.
Profit forecast and investment suggestions. Combined with the company’s operation in 2021, it is estimated that the EPS from 2022 to 2024 will be 1.10 yuan, 1.40 yuan and 1.80 yuan respectively, and the corresponding dynamic PE will be 18 / 14 / 11 times respectively, maintaining the “buy” rating.
Risk tip: the progress of product development is less than expected, and animal epidemic occurs at the breeding end.
