\u3000\u30 Jinzai Food Group Co.Ltd(003000) 87 Winall Hi-Tech Seed Co.Ltd(300087) )
Event:
Winall Hi-Tech Seed Co.Ltd(300087) released the annual report of 2021: in 2021, the company achieved an operating revenue of 2.521 billion yuan, a year-on-year increase of 57.38%, and the net profit attributable to the parent company was 169 million yuan, a year-on-year increase of 26.68%.
Key investment points:
The revenue increased by 57.4% year-on-year, and the net profit attributable to the parent increased by 26.7% year-on-year. The company is a leading company of rice and corn seeds in China and one of the first batch of crop seeds "integrated cultivation, propagation and promotion" enterprises certified by the Ministry of agriculture. The company's main products include: hybrid rice, hybrid corn, wheat and other crop seeds. The sales area covers China's main crop planting areas such as central and East China and overseas areas such as Southeast Asia, South Asia and Africa; The company uses high-quality and characteristic varieties to drive the order agricultural products, which are mainly supplied to Chinese grain, breeding and other enterprises. In 2021, the company's seed sales exceeded 100 million kg, with a year-on-year increase of 51.8%; The sales volume of order grain business was 270 million kg, a year-on-year increase of 71.6%; The sales volume of silage corn feed business was 180 million kg, an increase of 783.7% over the same period of last year.
The gross profit margin of rice seeds was flat and slightly decreased, while that of corn and wheat seeds increased significantly. In 2021, the company's rice seed business realized a revenue of 1.21 billion yuan, with a year-on-year increase of 39.0% and a gross profit margin of 44.2%, a slight decrease of 0.3pct. The revenue of corn seed business was 218 million yuan, with a year-on-year increase of 63.4%, and the gross profit margin was 42.3%, with a year-on-year increase of 7.8pct. The revenue of wheat seed business was 150 million yuan, with a year-on-year increase of 71.4%, and the gross profit margin was 9.6%, with a year-on-year increase of 2.7pct. The company's corn and wheat business benefited from better downstream planting income and increased seed demand. The company effectively controlled seed production costs and improved the gross profit margin of seed business as a whole. At the same time, the scientific research capability of the company has been further improved, the breeding of new varieties has achieved fruitful results, and 97 varieties approved by the state in multiple regions have been added or realized, including 92 rice and 5 corn; 60 varieties approved by multiple provinces have been added or realized, including 44 rice, 9 corn and 7 wheat. The company added 4 authorized invention patents, 50 new variety rights and 72 new trademarks. By the end of 2021, the company had a total of 377 rice varieties (205 national approved varieties), 81 corn varieties (15 national approved varieties) and 15 wheat varieties independently or cooperatively bred. In 2021, R & D investment increased by 48.3% year-on-year. In 2021, the company's corn scientific research work was rapidly integrated and developed, and established cooperative relations with downstream food, medicine and other deep-processing enterprises.
The order farming business continues to grow rapidly, and the industrial chain integration is the main seed sales. In 2021, the company's grain order business achieved revenue of 720 million yuan, a year-on-year increase of 72.5%, and the silage corn business achieved revenue of 130 million yuan, a year-on-year increase of 800.3%. Starting from the needs of dairy enterprises, the company makes every effort to ensure the quality of silage corn. Through silage corn order planting, the company has actively driven the sales of hybrid corn and wheat seeds such as Quanyu 1233, Luyu 9105 and Sumai 188. The subsidiary, Quanyin biology, actively carried out variety research and development and order supply business of special grain for brewing, optimized the supply chain of special grain for brewing, focused on the high-quality development of special grain for brewing and promoted seed sales.
Profit forecast and investment rating: we predict that the net profit attributable to the parent company from 2022 to 2024 will be RMB 202 / 238 / 320 million respectively, EPS will be RMB 0.44/0.53/0.71/share respectively, and the corresponding PE will be 56.39/47.71/35.49 times respectively. It will be covered for the first time and given a "buy" rating.
Risk warning: natural disaster risk; Covid-19 epidemic risk of poor transportation; Risk of seed storage; Market fluctuation risk; The company's performance is lower than the expected risk.
