Jiangsu Provincial Agricultural Reclamation And Development Co.Ltd(601952) company information update report: wheat yield per mu reached a record high, and the prosperity of grain prices supported the rise of profits

\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 952 Jiangsu Provincial Agricultural Reclamation And Development Co.Ltd(601952) )

The yield of wheat per mu hit a record high, the boom in grain prices supported the rise in profits, and maintained the “buy” rating

Jiangsu Provincial Agricultural Reclamation And Development Co.Ltd(601952) released the annual report of 2021: in 2021, the company realized an operating revenue of 10.64 billion yuan (+ 23.43%) and a net profit attributable to the parent company of 737 million yuan (+ 10.06%). During the reporting period, the total output of rice and wheat planted by the company was 1.266 million tons. The average yield of wheat and rice in this department was 1147 kg and 1245 kg per mu, both reaching the historical high-yield level. During the reporting period, the company reached a 20-year lease contract with Jiangsu Agricultural Reclamation group, and the agreed land rent was 362 yuan / mu, a decrease of 37 yuan / mu compared with the previous lease period; In addition, the newly expanded land of Suzhou suken is 29000 mu. Benefiting from the reduction of land lease fees, the price of big wheat has risen, the company’s profit forecast for 20222023 has been raised, and the 2024 forecast has been added. It is estimated that the company’s net profit attributable to the parent company from 20222024 will be 950 / 1032 / 1067 million yuan (the predicted value before 20222023 is 899 / 996 million yuan), the corresponding EPS will be 0.69/0.75/0.77 yuan respectively, and the current share price will be 21.6/19.9/19.2 times that of PE respectively. The price of big wheat will rise, and the company’s yield per mu will increase steadily, Maintain the “buy” rating.

The gross profit of rice and wheat planting business has increased, and the company’s comprehensive agricultural service capacity has reached a new level

During the reporting period, the company achieved revenue of 1.343 billion yuan (+ 1.55%) and 15.50 (- 10.74%) respectively for wheat, wheat and rice planting. The year-on-year decline in rice revenue was mainly caused by the sales rhythm. In 2021, the company’s rice production and sales were 609000 tons and 222000 tons respectively, with year-on-year changes of – 1.17% and – 27.35% respectively. Benefiting from the rising price of staple food, the gross profit margin of wheat, wheat and rice increased by 6.74pct, 4.10pct to 33.08% and 19.40% respectively. During the reporting period, the company served 7720 major agricultural service providers in suken, covering an area of 6.459 million mu. Provide full cycle information management and services for growers, and the integrated development ability of the company’s industrial chain is continuously strengthened.

The prices of staple food crops are booming, and the sales of seeds, rice and big wheat raw materials rise simultaneously

During the reporting period, Dahua seed industry achieved revenue of 476 million yuan (+ 16.16%), 1091 million yuan (31.42%), sales of 105300 tons (+ 5.97%) and 277600 tons (- 0.24%); Suken rice sold 345700 tons of all kinds of rice (+ 5.23%), and the company’s internal rice processing and sales scale continued to increase; The company has newly added wheat and wheat export business, and the sales of raw grain has achieved an overall revenue of 2.467 billion yuan (+ 42.06%); The company added rape planting business, with annual revenue of RMB 313935 million and gross profit rate of 36.68%. The company’s annual refining and filling capacity of Dongguan Golden Sun Abrasives Co.Ltd(300606) grain and oil of 300000 tons will benefit from the opening of the company’s internal oil industry chain to achieve cost reduction and efficiency increase.

Risk tips: rising raw material prices, epidemic and natural disaster risks, and the company’s production capacity is lower than expected.

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