\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 2021 annual report, and the company achieved an operating revenue of 2.521 billion yuan, a year-on-year increase of 57.38%; The net profit attributable to the parent company was 169 million yuan, a year-on-year increase of 26.68%; The non net profit attributable to the parent company was 150 million yuan, with a year-on-year increase of 37.89%.
Seed expansion was effective and sales increased significantly, laying the foundation for performance growth
In recent years, the company has paid attention to the reserve of multiple varieties, which is mainly reflected in the expansion from the original rice to the research and development of corn, wheat and other crops; From the middle and lower reaches of the Yangtze River (East China) to the southwest and South China. The company's advantageous sales areas continued to take the lead. In 2021, the company's sales revenue in East China increased by 76%, reaching 1.49 billion; The company's variety layout and sales area expansion were fruitful, including 17% increase in sales revenue in South China, 23% increase in Southwest China, 379% increase in Northwest China and 256% increase in North China. Under the strategy of multi category and multi regional layout, the company's sales exceeded 100 million kg in 2021, with a year-on-year increase of 52%. At present, the company's seed revenue is still 3.9 billion yuan in 2021, with a year-on-year increase of 1.2 billion yuan; Other crop seeds grew rapidly, with corn revenue reaching 218 million, a year-on-year increase of 63%, and wheat revenue reaching 149 million, a year-on-year increase of 71%. In addition, the company added or realized 60 varieties approved by multiple provinces in 2021, including 44 rice, 9 corn and 7 wheat. In addition, the company's foreign business was carried out smoothly, with foreign revenue of 181 million in 2021, a year-on-year increase of 30%. The continuous expansion of seed business lays the foundation for the continuous growth of performance.
The order farming business was promoted smoothly and developed in coordination with the seed business
The company's order business continued to expand, in which the revenue of order grain business reached 724 million (a year-on-year increase of 73%), and the revenue of silage corn reached 135 million (a year-on-year increase of 800%). The company's order agriculture business has become more and more mature, and the gross profit margin has gradually increased. The gross profit margin of grain crops has increased to 7.6% from 4.66% in the same period last year. The role of order agriculture in promoting seed business has emerged. The company has actively driven the sales of hybrid corn and wheat seeds such as rice seeds, Quanyu 1233, Luyu 9105 and Sumai 188 through the demonstration of integrated brand grain base and silage corn order planting.
The reform of seed industry is expected to accelerate, and the company aims to be among the top ten in the global seed industry!
In 2021, the amendment to the seed law was deliberated and passed. This amendment expanded the scope of protection of intellectual property rights of new plant varieties, extended protection links, improved protection level and strengthened protection. We believe that the seed industry innovation environment continues to improve under the promotion of a series of systems represented by the seed law. The company has set the goal of entering the top ten in the world seed industry at the end of the 14th five year plan. In 2020, the company implemented the employee stock ownership plan for the first time, and the employee stock ownership plan was successfully unlocked for the first time in 2021, which greatly mobilized the enthusiasm of employees. In 2021, the company realized a net profit attributable to the parent company of 169 million yuan, with a year-on-year increase of 26.68%. We believe that the company has a clear variety and regional expansion path, pays attention to R & D investment and mobilizes the innovation enthusiasm of R & D personnel, and is expected to make steady progress on the way to achieve the goal!
Profit forecast and investment suggestions: we expect that from 2022 to 2024, the company will achieve operating revenue of 34.57/43.07/5.239 billion, an increase of 37% / 25% / 22% and net profit attributable to parent company of 216 / 309 / 366 million, an increase of 27.5% / 43.28% / 18.51%. The company has been deeply engaged in the seed industry with rapid business expansion, continued to focus on recommendation and maintained the "buy" rating.
Risk warning: epidemic risk; Price fluctuation; Risk of policy change; The agricultural extension of orders is less than expected; GM promotion was less than expected.
