\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 201 Jinyu Bio-Technology Co.Ltd(600201) )
Event: the company disclosed that in the annual report of 2021 and the first quarterly report of 2022, the company realized an operating revenue of 1.776 billion yuan in 2021, a year-on-year increase of 12.29%, and a net profit attributable to the parent company of 382 million yuan, a year-on-year decrease of 5.89%; In 2022q1, the operating revenue was 342 million yuan, a year-on-year decrease of 34.22%, and the net profit attributable to the parent company was 81 million yuan, a year-on-year decrease of 61.32%.
The deregulation of breeding capacity will affect the short-term profit, and the company’s profit is expected to improve quarter by quarter throughout the year. 2021q4 and 2022q1 pig prices have experienced two rapid bottoms, and the breeding industry has entered a deep loss. Extreme prices affect the short-term immunization coverage. In particular, the immunization program is more used for breeding sows and piglets after weaning. The rapid removal of short-term production capacity has an adverse impact on the demand of the animal protection industry and the short-term profit of the company. Excluding the impact of non current items (Liaoning Yikang goodwill impairment and non plague project approval), the company’s revenue and profit maintained a steady growth in 2021, and there was a certain decline in Q1 in 2022. However, we judge that with the recent stabilization and recovery of pig price after the bottom, the demand of the dynamic insurance industry and the company’s performance are expected to improve gradually.
The company has a dynamic and long-term growth matrix, and its products are still rich in the industry. The company has a relatively complete product matrix and continues to enrich it. The company has a deep layout in varieties with long-term development potential. The company’s non foot-and-mouth disease products have increased rapidly, and ruminant vaccine has achieved rapid growth. We believe that in the long run, there is still a general trend of marketization and centralization in the animal protection industry. The improvement of large-scale breeding and the renewal and iteration of new technologies are expected to continue to promote the growth of the industry. In this context, the company is expected to continue to maintain its competitive position in the industry by virtue of its single product strength, perfect product matrix and comprehensive breeding service ability.
The R & D of new pipelines has been continuously promoted. The company continues to attach importance to building platform capabilities with R & D as the core. In 2021, the company continued to increase R & D investment, and the proportion of R & D investment in operating revenue further increased to 15.04%. During the reporting period, the company continued to promote the research and development of various pipelines, and continued to explore various feasible paths in the field of African classical swine fever vaccine, focusing on the screening of effective antigens, breakthroughs in the core technology of new subunit vaccine and mRNA vaccine. We believe that the R & D platform is the core element in the long-term competition of the animal protection industry, and the continuous deep cultivation of the company’s R & D end is expected to bring inexhaustible power to the company’s long-term growth.
Profit forecast and investment rating of the company: we are optimistic about the long-term growth of multiple categories and dimensions brought by the company’s comprehensive platform ability, and the expectation that the profitability will gradually improve with the downstream breeding cycle. It is estimated that the net profit attributable to the parent company in 22-24 years will be RMB 467 million, RMB 609 million and RMB 743 million respectively, the corresponding EPS will be RMB 0.41, RMB 0.54 and RMB 0.66 respectively, and the corresponding PE values will be 24, 19 and 15 times respectively, maintaining the “strongly recommended” rating.
Risk tip: the recovery of industry demand is less than expected, and the risk of animal disease is high.
