Anhui Huaheng Biotechnology Co.Ltd(688639)
Event: Anhui Huaheng Biotechnology Co.Ltd(688639) released the annual report of 2021, realizing an operating revenue of 954 million yuan, a year-on-year increase of 95.81%; The operating profit was 186 million yuan, a year-on-year increase of 40.79%; The net profit attributable to shareholders of listed companies was 168 million yuan, a year-on-year increase of 38.92%, and the net profit after deducting non recurring profits and losses was 145 million yuan, a year-on-year increase of 50.20%. Based on the total share capital of 108 million shares, the diluted earnings per share is 1.55 yuan (1.35 yuan after deducting non-profit), and the operating cash flow per share is 0.89 yuan. Among them, the operating revenue in the fourth quarter was 333 million yuan, a year-on-year increase of 162.81%; The net profit attributable to the shareholders of the listed company was 66 million yuan, a year-on-year increase of 84.12%; Equivalent to single quarter eps0 61 yuan.
New product capacity was released and the scale of revenue increased significantly. In 2021, the company achieved an operating revenue of 950 million yuan, an increase of 95.81% year-on-year; Among them, the amino acid business achieved an operating revenue of about 800 million yuan, a year-on-year increase of 92%. This is mainly due to the increase in the production and sales of valine and alanine products of the company. The fund-raising project Bayannur alternating production of alanine, valine project and Qinhuangdao fermentation alanine technical transformation and expansion project were partially put into operation as planned, and the capacity utilization rate was released and improved in an orderly manner.
In 2021, the company’s comprehensive gross profit margin was 32.3%, down 11.2pcts year-on-year. In the cost composition of the company’s amino acid products, the cost of direct materials increased by about 153.8% year-on-year. Combined with the calculation of the company’s sales volume, the cost of direct raw materials per ton increased by about 42% year-on-year, while the direct labor cost and manufacturing cost per ton decreased year-on-year. Therefore, we speculate that it is mainly due to the higher price of raw material glucose.
Increase investment in R & D, build the path of technology industrialization in the whole industrial chain, and expand product layout. In 2021, the company’s R & D expenses were 52.84 million yuan, a year-on-year increase of 75.42%. The company adheres to and develops the existing innovative mode of technical cooperation combining production, study and research. At the same time, it has established Huaheng synthetic Biotechnology Research Institute, introduced overseas high-end talents, built a system and synthetic biology center, improved the industrialization path of the whole industrial chain technology combining strain construction technology research and development, small-scale test, pilot test, amplification and factory large-scale production, and focused on the two technical platforms of fermentation method and enzyme method, Accelerate the layout of pipeline products under research.
The construction of key projects has been implemented, and the product capacity has been continuously expanded. In 2022, The company’s fund-raising projects “alternating annual output of 25000 tons of alanine and valine project” and “fermentation alanine 5000 tons / year technical transformation and expansion project” gradually improve the capacity utilization, optimize the product production process and improve the economy of products. At the same time, the investment projects of various bases are steadily promoted as planned, including the three branched chain amino acid and its derivatives project of Bayannur base (16000 tons / year) And Changfeng base beta alanine derivative project, improve product production capacity, improve the types of three branched chain amino acid products, improve the integration of industrial chain, and continuously enhance the comprehensive competitiveness of products.
Profit forecast and Valuation: comprehensively considering the construction of the company’s new base and future production capacity, the company’s net profit from 2022 to 2024 is expected to be 240 million yuan, 350 million yuan and 450 million yuan respectively, maintaining the “buy” investment rating.
Risk warning: the risk of single product series, concentrated application fields of main products, slowdown of market demand and limited capacity, and decline of sales price of main products
