\u3000\u3 China Vanke Co.Ltd(000002) 1 Shenzhen Kaifa Technology Co.Ltd(000021) 00)
The event company issued its annual report for 2021.
In 2021, the company achieved a revenue of 15.744 billion yuan, a year-on-year increase of + 31.35%, of which slaughtering and processing and sales of meat products, pig breeding, feed, veterinary medicine, corn silage, Shenzhen Agricultural Products Group Co.Ltd(000061) processing contributed 1.734 billion yuan, 1.761 billion yuan, 5.135 billion yuan, 980 million yuan, 3.831 billion yuan and 1.640 billion yuan respectively, a year-on-year increase of + 67.40%, – 27.86%, + 21.83%, + 15.80%, + 94.64% +47.07%。 The net profit attributable to the parent company was -686 million yuan, a year-on-year increase of -139.87%; The net profit attributable to the parent company after deducting non-profit was -655 million yuan, a year-on-year increase of – 137.93%. The expense rate during the period was 10.91%, with a year-on-year increase of -4.75pct; The comprehensive gross profit margin was 9.77%, with a year-on-year increase of -21.22pct. The decline of the company’s performance is mainly due to the sharp decline in the price of 21h2 Chinese pigs, the loss of pig business caused by the high cost of purchasing piglets outside the feed stocking department, and the company’s provision for asset impairment loss of 385 million yuan. 21q4’s revenue was 3.415 billion yuan, a year-on-year increase of + 1.47%; The net profit attributable to the parent company was -493 million yuan, a year-on-year increase of -303.07%; The expense rate during the period was 8.73%, with a year-on-year increase of -14.84pct; The comprehensive gross profit margin was 0.38%, with a year-on-year increase of -30.03pct.
The target of 2.2 million pigs in 22 years is to reduce costs and increase efficiency. The company will sell 1.6033 million pigs in 21 years, a year-on-year increase of + 19.2%; It is estimated that the average sales price is 17.8 yuan / kg, and the average weight is 131.92kg. In the past 22 years, the company targeted 2.2 million pigs, a year-on-year increase of + 37.2%. At the end of the year, the company’s fixed assets, construction in progress and productive biological assets were 4.341 billion yuan, 895 million yuan and 356 million yuan respectively, with a month on month increase of + 12.84%, – 17.21% and + 5.64% at the end of 21q3; The company’s production capacity is in the process of steady growth. In terms of cash flow and solvency, the company’s asset liability ratio was 54.71% at the end of 21, with a year-on-year increase of -1.63 PCT; The quick ratio was 0.77, a year-on-year increase of + 0.14. At the end of the 21st century, the company raised 2.066 billion yuan and planned to apply to the bank for 9.61 billion yuan of financing in 22 years. The superimposed feed, veterinary medicine and other businesses continued to contribute positive cash flow, which can ensure the company’s relatively stable cash flow. In addition, at the level of pig price, the overall trend in the past 22 years has been low before and high after. With the control of breeding cost at the company level, the company’s pig breeding business has made a good contribution.
Vaccine sales increased steadily, and new product research and development contributed to the growth in the future. In the next 21 years, the company’s pharmaceutical business accounted for 6.22% of revenue, and vaccine sales were 1.318 billion copies (ML), a year-on-year increase of + 2.35%; Among them, the core products foot-and-mouth disease vaccine and classical swine fever vaccine maintained a growth trend, with + 2.24% and + 0.85% respectively. The gross profit margin of veterinary drugs of the company was 68.38%, with a year-on-year increase of -0.6pct, which basically remained stable and was at a historical high level. In 21 years, the company’s R & D expenses were 143 million yuan, a year-on-year increase of + 37.41%; The company’s new product porcine epidemic diarrhea inactivated vaccine has obtained the production approval. The porcine circovirus type 2 – Mycoplasma hyopneumoniae pneumonia inactivated vaccine is in the review of new veterinary drugs, the porcine foot-and-mouth disease OA divalent synthetic peptide vaccine is in the process of new veterinary drug registration, and the porcine pseudorabies gene deletion live vaccine and subunit vaccine are in the stage of new veterinary drug registration and application. The company’s new products are advancing smoothly, and the follow-up can help the growth of veterinary drug business. The company’s sales target of animal vaccine in 22 years was 1.4 billion ml (the first batch), a year-on-year increase of + 6.22%.
Investment suggestion: the company is an integrated breeding enterprise with stable growth of feed and veterinary medicine business; At the same time, the company actively arranges the pig breeding business. With the gradual return of pig price, the control of breeding cost and the substantial increase of slaughter volume in 22-23 years, the company’s performance may be significantly improved. We expect that the EPS from 2022 to 2023 will be 0.05 yuan and 1.91 yuan respectively, corresponding to 194 times and 5 times of PE.
The risk indicates the risk of animal diseases and natural disasters; Risk of price fluctuation of raw materials; The risk of pig price fluctuation, the risk of policy change, etc
