\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 201 Jinyu Bio-Technology Co.Ltd(600201) )
Core view:
The event company issued the annual report of 2021 and the report of the first quarter of 2022.
Affected by the downstream aquaculture industry, the performance of 22q1 decreased significantly. In the past 21 years, the company’s revenue was 1.776 billion yuan, a year-on-year increase of + 12.29%, of which biopharmaceutical and other main business revenue contributed 1.717 billion yuan and 37 million yuan respectively, a year-on-year increase of + 13.14% and – 26.30%; The net profit attributable to the parent company was 382 million yuan, a year-on-year increase of – 5.89%; The net profit attributable to the parent company after deduction was 371 million yuan, a year-on-year increase of – 5.50%; Excluding the impact of the goodwill impairment of Liaoning Yikang and the R & D investment of the new African classical swine fever mRNA vaccine on the profit, the growth rate of the company’s net profit attributable to the parent company is basically the same as that of the revenue. The company’s comprehensive gross profit margin was 61.88%, year-on-year + 0.28pct; During the period, the expense rate was 35.32%, with a year-on-year increase of + 2.99pct, mainly due to the company’s increased expenditure on sales expenses and R & D expenses. In 2022q1, the company’s operating revenue was 342 million yuan, with a year-on-year increase of – 34.22%, mainly due to the deep losses in the pig breeding industry and other factors affecting the vaccine sales; The net profit attributable to the parent company was 81 million yuan, a year-on-year increase of – 61.68%; The net profit attributable to the parent company after deduction was 90 million yuan, a year-on-year increase of – 56.73%; The gross profit margin on sales was 55.15%, with a year-on-year increase of -12.51pct, mainly due to the decline in the proportion of revenue from products with high gross profit margin; The expense rate during the period was 20.94%, with a year-on-year increase of + 1.68pct. Dividend plan: cash dividend of 1.1 yuan (including tax) for every 10 shares.
In line with the changes of market demand, the product matrix and structure have been continuously optimized for 21 years. The supply recovery of the downstream pig breeding industry has driven the increase of pig vaccine demand, but the market demand structure has changed. The “fight first and then supplement” policy has promoted the market-oriented vaccine to replace the government bidding procurement, and the government procurement has increased by – 21.47% year-on-year. In addition, the company’s “combined immunization” and “needle free injection” anti non immunization programs have been recognized by customers, and driven the year-on-year growth of non foot-and-mouth disease vaccine revenue faster than that of foot-and-mouth disease vaccine. According to the market demand and inventory, the company reduced the output of foot-and-mouth disease vaccine and brucellosis vaccine. The output in 21 years was 786.22 million ml and 850600 copies respectively, with a year-on-year increase of – 10.23% and – 9.81%; At the same time, the annual production of rabies vaccine was 2.18 million ml, that of Pseudorabies Vaccine was 2.86 million ml, and that of Pseudorabies Vaccine was 2.56 million ml, respectively, up from a year earlier. At present, seven production lines of Jinyu Baoling and five production lines of Yangzhou Youbang have passed the new version of GMP certification. Jinyu will also carry out the acceptance of the new version of GMP in the next step.
Continuously increase R & D investment, continue to go deep into non plague vaccine research, and the company attaches importance to R & D. in 21 years, the R & D investment was 267 million yuan, a year-on-year increase of + 28.99%, accounting for 15.04% of revenue; The company has obtained 13 invention patents, 3 utility models, 6 clinical approvals, 2 new veterinary drug registration certificates and 2 product approval numbers (inactivated vaccine for porcine reproductive and respiratory syndrome and trivalent inactivated vaccine for Haemophilus parasuis). 22q1 company has newly obtained the product approval number of porcine circovirus type 2 and porcine Mycoplasma pneumoniae inactivated vaccine. The company will continue to carry out research on African classical swine fever vaccine, mainly focusing on the screening of effective antigen, the breakthrough of core technology of new subunit vaccine and mRNA vaccine, etc; At the same time, efforts will be made to promote the trial activities of foot-and-mouth disease combined vaccine and the registration of new products such as Mycoplasma bovis live vaccine and canine quadruple live vaccine.
As a leading enterprise of animal vaccine, the investment suggestion company has the first market share of foot-and-mouth disease vaccine in the industry, and has a large investment in R & D, so as to accumulate strength for subsequent new products. At the same time, considering the arrival of the upward cycle of the downstream aquaculture industry, the vaccination willingness of farms / households will gradually return, and the coverage is expected to increase, which will drive the company’s vaccine sales to increase significantly and benefit the growth of performance. We expect that the company’s EPS from 2022 to 2023 will be 0.42 and 0.49 yuan respectively, corresponding to 24 and 20 times of PE, maintaining the “recommended” rating.
Risk tips
1. Risk of animal epidemic;
2. Risk of market competition;
3. Risk of policy change;
4. Risk of product quality, etc.
