\u3000\u3 Shengda Resources Co.Ltd(000603) 566 Pulike Biological Engineering Inc(603566) )
Industry expansion, R & D and innovation have become the core of industry competition, which is expected to usher in industry remodeling
1) in recent years, the frequent occurrence of animal diseases, large-scale development of breeding industry and market seedling promotion have increased the quantity and price of animal protection products, driving the continuous expansion of veterinary medicine industry. 2) The threshold of veterinary medicine and biological products industry is high. Approval threshold: veterinary vaccines need strict R & D license and production qualification, and the new GMP certification and other standards further raise the threshold. Technical threshold: veterinary vaccines have high barriers in R & D, storage and production technology. Sales threshold: the industry is gradually transforming to providing comprehensive solutions for dynamic insurance, with high requirements for supporting services and marketing capabilities. 3) R & D and innovation will become the core of industry competition, support enterprises to respond to epidemic diseases faster, develop better products and provide more comprehensive services, and gain a foothold in the global market.
Pulike Biological Engineering Inc(603566) based on innovation, set sail to protect the blue ocean
Twenty years of integrity, innovation and careful management. Since its establishment, the company has focused on the innovative R & D and production of veterinary drugs, realized the steady improvement of revenue and profit, and became one of the leading enterprises in the R & D and production of veterinary drugs in China. R & D innovation is the cornerstone of competitiveness. 1) Both inside and outside to improve R & D strength. The company has set up three national R & D institutions to carry out independent innovation, and actively promote the cooperation between Harbin animal research, Lanzhou animal research and other institutions. 2) The R & D team has outstanding strength. The company continues to introduce high-level technical talents, and the educational background continues to be optimized, which has established sufficient talent reserves for enterprise scientific research and innovation. 3) The R & D investment is leading in the industry and the output is quite fruitful. The R & D expense rate of the company has exceeded 10% in recent three years, and large-scale capital investment has promoted the high yield of R & D achievements. As of the semi annual report of 2021, the company has submitted 503 invention patent applications.
Product line expansion, performance growth can be expected. 1) Pig vaccine: Pulike Biological Engineering Inc(603566) pig ring vaccine is the first in China and has been intensively cultivated for many years. The product barrier has gradually become. The sales revenue of some products in 2021h1 has doubled year-on-year. Successfully cut into the foot-and-mouth disease market, grasp the largest single product in the pig seedling market, and have a promising development prospect in the future.
2) avian vaccine: the company has outstanding technical advantages in genetic engineering of avian influenza vaccine. The avian vaccine has realized multi connection and multi price upgrading, and the market share of main products ranks first in the industry. In 2019, it obtained the production qualification of trivalent inactivated vaccine of highly pathogenic avian influenza virus (H5 + H7), expanded its production capacity, and made a promising contribution to the performance increment.
3) pets: relying on the accumulation of capital and technology, the company will accelerate its entry into the pet drug market, give priority to the development of pet vaccine products with high use frequency, and comprehensively layout the marketing system, which is expected to give priority to the domestic substitution of pet drugs.
The non plague subunit vaccine is progressing smoothly, and we hope to take the lead in obtaining dividends Pulike Biological Engineering Inc(603566) African swine fever subunit
The vaccine R & D cooperation project has made positive progress. At present, the Ministry of agriculture and rural areas has finished soliciting opinions on the emergency evaluation, and the follow-up will improve the experimental research and accelerate the listing process. If approved for listing, the end-user price of each injection is expected to be about 30 yuan, and the immunization cost of each pig after two injections is expected to be 60 yuan, which may bring more than 30 billion potential market space for pig vaccine, and the company is expected to benefit first.
Investment suggestion Pulike Biological Engineering Inc(603566) company is a high-tech enterprise mainly engaged in R & D, production and operation of veterinary biological products and drugs, with its innovation ability and comprehensive strength in the forefront of the industry. In recent years, the company has made smooth progress in the layout development and market expansion of large single products of biological products for pigs, birds and pets. At present, the African swine fever subunit vaccine project of the company's technical cooperation with Lanzhou Veterinary Institute of Chinese Academy of Agricultural Sciences has made positive progress Pulike Biological Engineering Inc(603566) many product lines are expected to develop.
We estimate that the net profit attributable to the parent company from 2021 to 2023 will be 251.23 million yuan, 301.71 million yuan and 362.94 million yuan respectively, and the EPS will be 0.78 yuan, 0.94 yuan and 1.13 yuan respectively. The corresponding PE will be 30.25, 25.19 and 20.94 times respectively, giving a "buy" rating.
Risk tips
1. The company's R & D promotion and approval of products related to swine, poultry and pet vaccines are not progressing as expected, and there is a risk that the pace of product implementation and promotion will slow down.
2. The profit of the breeding industry is reduced due to the fluctuation of the downstream breeding cycle, the willingness of some farmers to invest in animal epidemic prevention is reduced, and the company's performance is affected.
3. Animal safety problems that may occur in the application of veterinary biological products, and the risk of litigation, compensation and other events.
