\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 195 China Animal Husbandry Industry Co.Ltd(600195) )
Event: on the evening of April 11, the company announced that the company and its wholly-owned subsidiary Nanjing Pharmaceutical Co., Ltd. planned to jointly invest with Muyuan Foods Co.Ltd(002714) ( Muyuan Foods Co.Ltd(002714) ) to establish a joint venture zhongmuyuan.
1. It is proposed to establish a veterinary chemical company jointly with Muyuan Foods Co.Ltd(002714) and China Animal Husbandry Industry Co.Ltd(600195) holding
China Animal Husbandry Industry Co.Ltd(600195) and its wholly-owned subsidiary Nanjing Pharmaceutical Co., Ltd. intend to jointly invest with Muyuan Foods Co.Ltd(002714) to establish a joint venture zhongmuyuan. After the establishment of zhongmuyuan Animal Pharmaceutical Co., Ltd., it invested in the construction of Nanyang production base project of zhongmuyuan Animal Pharmaceutical Co., Ltd. The registered capital of Zhongmu was 120 million yuan, and China Animal Husbandry Industry Co.Ltd(600195) contributed 58.68 million yuan in cash, accounting for 48.9% of the registered capital Muyuan Foods Co.Ltd(002714) invested 57.6 million yuan in cash, accounting for 48% of the registered capital; Nanjing Pharmaceutical contributed 3.72 million yuan in cash, accounting for 3.1% of the registered capital. After the establishment of zhongmuyuan, the total contribution of China Animal Husbandry Industry Co.Ltd(600195) accounted for 52% of the registered capital of zhongmuyuan. Zhongmuyuan was a China Animal Husbandry Industry Co.Ltd(600195) holding subsidiary. The construction investment of Nanyang production base project of Zhongmu Muyuan Animal Pharmaceutical Co., Ltd. is 470 million yuan, mainly engaged in veterinary drug production, veterinary drug operation, veterinary drug R & D and technical consulting services.
2. The company’s research and development of veterinary chemicals is expected to continue to deepen, and further open up sales space through in-depth cooperation with muyuan
The company has a deep accumulation of veterinary chemical drugs, with major products such as tylosin, tylosin API, florfenicol API, mulexin and fluxintai. In 2020, the company’s veterinary drug revenue exceeded 1 billion. Nanjing Pharmaceutical, a wholly-owned subsidiary of the company, has a first-class production workshop built according to the GMP standard of veterinary drugs, with China’s advanced production equipment and precision testing instruments. Its R & D and production has the advantages of specialization and scale, and the product quality is excellent. The cooperation between the company and muyuan, a leading enterprise in the downstream of the industrial chain, is expected to continue to promote the deepening of the company’s R & D and further build the company’s high-end veterinary drug product line Muyuan Foods Co.Ltd(002714) in 2020, the expenditure on drug seedlings is about 1.143 billion, corresponding to the amount of drug seedlings sold in that year, the expenditure is more than 60 yuan / head, and the amount of muyuan sold in 2023 is expected to reach 70 million heads. Muyuan’s large and more refined demand for chemical drugs is expected to bring greater increment to the sales of veterinary drugs of the joint venture. During the “14th five year plan” period, the company is committed to building an industrial support system for the prevention and control of major animal diseases and becoming a leader in China’s animal protection industry. The establishment of the joint venture is an important step for the company to implement the “14th five year plan” strategic plan, and is expected to continue to consolidate and strengthen the company’s leading market position in the field of veterinary chemicals.
3. The supply side reform of the industry is accelerated, and the company is expected to continue to take the lead
The quality management specification for veterinary drug production issued by the Ministry of agriculture and rural areas requires all veterinary drug production enterprises to meet the requirements of the new veterinary drug GMP before June 1, 2022, which is expected to improve the industrial concentration and promote the transformation and upgrading of the veterinary drug industry. The production enterprises of biological products and veterinary chemical drugs of the company have obtained the GMP certification and production license of veterinary drugs. In 2021, the major three-level biological safety protection projects of Lanzhou new factory and Zhengzhou new factory of the company ended, and the new factory and new production line have been put into operation after passing the acceptance of the new veterinary drug GMP. The products are gradually high-end, driving the significant increase of unit price and gross profit. We believe that the company is a leading enterprise in animal protection in China, with stable political and mining advantages in animal vaccines, continuous acceleration of market-oriented layout, diversified and high-end development of chemical drugs and rapid growth of volume.
We believe that the company’s new projects are expected to promote the faster development of the company’s chemical medicine business, adding to the company’s solid industry position and solid business foundation. We raised the profit forecast. It is expected that the company’s revenue in 2021 / 22 / 23 will be 5.781/64.63/7.579 billion yuan, with a year-on-year increase of 15.65% / 11.81% / 17.26%, and the net profit attributable to the parent company will be 5.53/6.64/876 billion yuan (the value before adjustment is 5.09/6.56/805 million yuan), with a year-on-year increase of 31.49% / 20.12% / 31.92%. We believe that the company has a solid position in the industry and continues to make positive progress in product R & D and downstream customer development. We continue to recommend!
Risk warning: policy risk; The growth of aquaculture did not meet expectations; Downstream epidemic risk; Nanyang production base project construction is less than expected risk.
