\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 195 China Animal Husbandry Industry Co.Ltd(600195) )
The event company issued its annual report for 2021.
In the past 21 years, the company’s performance grew steadily and the gross profit margin increased significantly. In the past 21 years, the company’s revenue was 5.302 billion yuan, a year-on-year increase of + 6.06%, of which trade revenue, biological products, veterinary drugs and feed contributed 1.45 billion yuan, 1.429 billion yuan, 1.257 billion yuan and 1.102 billion yuan respectively, a year-on-year increase of + 2.62%, – 0.25%, + 24.02% and – 1.34%; The net profit attributable to the parent company was 514 million yuan, a year-on-year increase of + 22.22%; The net profit attributable to the parent company after deducting non profits was 511 million yuan, the same as + 25.23%. The company’s comprehensive gross profit margin was 29.06%, with a year-on-year increase of + 2.84 PCT, mainly benefiting from the gross profit margin of biological products and chemical drugs + 5.46 PCT and + 4.23 PCT year-on-year; The expense rate during the period was 18.86%, with a year-on-year increase of + 0.07pct. In 2021q4, the company’s operating revenue was 1.396 billion yuan, a year-on-year increase of + 3.48%; The net profit attributable to the parent company was 49 million yuan, a year-on-year increase of + 176.08%; The net profit attributable to the parent company after deducting non profits was 50 million yuan, a year-on-year increase of + 63.36%; The gross profit margin of sales was 31.21%, with a year-on-year increase of + 6.88pct; The expense rate during the period was 26.47%, with a year-on-year increase of + 6.17pct, of which the significant increase in sales expenses was due to the increase in the salary of sales personnel. Dividend plan: cash dividend of 1.52 yuan (including tax) for every 10 shares.
The revenue of veterinary drugs increased rapidly, and the high-end products promoted the gross profit. In the past 21 years, the revenue of veterinary drugs of the company increased significantly (+ 24.02%), becoming the fastest growing business of the company; And its revenue accounted for 23.71%, with a year-on-year increase of + 3.43pct, showing a continuous growth trend. Benefiting from the fact that the new factories and production lines have been put into operation after passing the acceptance of the new version of veterinary drug GMP, and the products are gradually high-end, the gross profit margin of the company’s veterinary drug business has reached 31.02%, with a year-on-year increase of + 4.23pct; Its gross profit contribution accounted for 25.31%, with a year-on-year increase of + 4.6pct, the highest in history. In addition, on April 12, the company announced that it planned to jointly invest 120 million yuan with Muyuan Foods Co.Ltd(002714) , Nanjing Pharmaceutical (a wholly-owned subsidiary of the company) to establish Zhongmu Muyuan Animal Pharmaceutical Co., Ltd. China Animal Husbandry Industry Co.Ltd(600195) with a total shareholding of 52%, Zhongmu muyuan will become the holding subsidiary of the company. This cooperation with large-scale breeding enterprises in the field of veterinary chemicals, on the one hand, through the expansion of production of the company’s independently developed products, continue to consolidate and strengthen the company’s market position in the field of veterinary chemicals, on the other hand, promote the sustainable and rapid development of the company by building an industrial business community.
The gross profit of animal vaccine is 54%, and the R & D investment remains high. For 21 years, the gross profit margin of the company’s animal vaccine business is 58.13%, the highest in 16 years; Gross profit accounts for 53.92%, which is still the core contribution to the company’s performance. By grasping the leader and using large single products and deep-rooted terminals, the group’s breeding customers have increased steadily; At the same time, the company continues to maintain the leading market share of foot-and-mouth disease and avian influenza vaccine. In 21 years, the company invested about 195 million yuan in R & D, accounting for 3.68% of revenue; A total of 6 new veterinary drug registration certificates were obtained, including bovine foot-and-mouth disease O and a divalent synthetic peptide vaccine, porcine circovirus type 2 synthetic peptide vaccine, chicken Newcastle disease and infectious bronchitis live vaccine, etc; At the same time, 45 new veterinary drug approval numbers were obtained, including inactivated swine foot-and-mouth disease O and a bivalent vaccine, inactivated Swine Pseudorabies Vaccine, highly pathogenic porcine reproductive and respiratory syndrome, swine fever Bivalent Live Vaccine, etc. Relying on continuous R & D investment, the company’s follow-up product matrix is gradually enriched. With the improvement of downstream demand, the future growth can be expected.
The company’s veterinary drug business is growing well. The sales of animal vaccines are affected by the downstream breeding industry in the short term, but with the arrival of the follow-up pig upward cycle, it will significantly drive the sales increase. We expect that the company’s EPS from 2022 to 2023 will be 0.59 and 0.7 yuan respectively, corresponding to 19 and 16 times of PE, maintaining the “recommended” rating.
Risk tips
1. The risk of sharp fluctuations in the price of raw materials;
2. Risk of product safety;
3. Risk of major animal epidemic;
4. Exchange rate and interest rate fluctuation risk, etc.
