\u3000\u3 Shengda Resources Co.Ltd(000603) 739 Qingdao Vland Biotech Inc(603739) )
The bottom of the breeding cycle increased steadily in 2021. The company's revenue in 2021 was + 19.85% to 1.115 billion yuan year-on-year, and the net profit attributable to the parent company was + 21.65% to 133 million yuan year-on-year. Among them, the sales revenue of enzyme preparation was 430 million yuan (+ 38.89%), and that of micro ecology was 250 million yuan (+ 16.58%), accounting for about 59.1% of the total operating revenue, which is the core driving force of the company's profits. In addition, in 2022q1, the company achieved a revenue of 256 million yuan, a year-on-year decrease of 3.83%, and a net profit of 18 million yuan, a year-on-year decrease of 37.68%, which was mainly due to the decrease in the demand for enzyme preparations and micro ecological products caused by the downturn of downstream aquaculture market, with the revenue falling by 8.59% and 6.77% respectively.
The main business of feed enzyme and microecology has developed steadily, and major health businesses such as probiotics have been promoted in an orderly manner. In terms of products, the company's profits of enzyme preparations, probiotics and other business modules maintained steady growth in 2021. Among them, the enzyme preparation business achieved a revenue of 430 million yuan in 2021, a year-on-year increase of 38.89%, the high gross profit margin rose to 54.25%, and the volume, profit and price rose simultaneously. At present, the livestock and poultry breeding industry is generally faced with the dilemma of poor sales price and rising raw material cost. The application trend of unconventional raw materials at the feed end is obvious. The company's feed enzyme products can effectively improve the feed conversion efficiency and help the breeding end reduce the cost, which is expected to benefit fully. In addition, the company's microecological preparation business achieved a revenue of 250 million yuan in 2021, with a year-on-year increase of 16.58%. The company actively deployed probiotics and other microecological related products. At present, the company has independently developed a variety of probiotic strains for food or skin topical use with outstanding effects. Its R & D strength is in the forefront of the industry. The company is expected to fully benefit from the accelerated penetration of probiotic products in China, and its food Daily chemical probiotics and other market segments occupy a place.
Overweight human probiotics project to accelerate research and development in an all-round way. In 2021, the company's sales / management / R & D / financial expense ratio was 15.6% / 17.9% / 8.8% / 0.3% respectively, with a year-on-year change of - 8% / - 1% / + 5% / - 42% respectively. The improvement of the company's expense rate during the period is mainly due to the implementation of the first equity incentive in 2021, which has effectively driven the enthusiasm of employees. At the same time, the company attaches importance to R & D. in 2021, there were 264 full-time R & D personnel, with a year-on-year increase of 22%, and the R & D expense rate in 22q1 increased by 25% year-on-year. The stable management team and professional talent team effectively ensure the sustainable and rapid development of the company. In terms of emerging business, in 2021, the company deepened its cooperation with ADM, one of the world's top 500 companies. The two sides plan to set up a company to produce and sell probiotic products for human use. As the strains independently developed in China are more suitable for Chinese intestinal flora, the domestic substitution trend is obvious, and the company may benefit from the growth of probiotic market. In addition, in October 2021, the company and Evonik jointly launched innovative probiotic additive products for shrimp culture, further realizing its R & D advantages.
Risk tip: the risk of outbreak of large-scale uncontrollable livestock and poultry diseases and the risk of price fluctuation of raw materials.
Investment suggestion: the company is the leader of microorganism, and the growth margin is expected to be gradually opened. Considering that the downturn of downstream aquaculture market in 2022 may affect the product demand of the company, the profit forecast is lowered. It is predicted that the net profit attributable to the parent company in 22-24 years is 93 / 169 / 191 million yuan, corresponding EPS is 0.37/0.67/0.76 yuan and PE is 42.2/23.2/20.5 times respectively, maintaining the "overweight" rating.
