\u3000\u30 China Baoan Group Co.Ltd(000009) 98 Yuan Longping High-Tech Agriculture Co.Ltd(000998) )
Event:
The company released the annual report of 2021 and the first quarterly report of 2022: in 2021, the company achieved annual revenue of 3.503 billion yuan, a year-on-year increase of 6.47%; The net profit attributable to the parent company was 62 million yuan, a year-on-year decrease of 46.12%; The net loss attributable to the parent after deducting non profits was 448 million yuan, with a profit of 61 million yuan in the same period last year. Q1 company achieved an annual revenue of 905 million yuan, a year-on-year increase of 6.48%; The net profit attributable to the parent company was 54 million yuan, with a significant year-on-year increase of 34.38%; The net profit attributable to the parent company after deducting non-profit was 45 million yuan, a year-on-year decrease of 50.79%.
Comments:
Asset impairment dragged down profits, and corn seed revenue increased by 2.7% year-on-year.
In 2021, the company achieved annual revenue of 3.503 billion yuan, a year-on-year increase of 6.47%; The seed production volume was 140 million kg, an increase of 15.35% year-on-year. Among them, the income from rice seeds was 1.304 billion yuan, accounting for 37.22%, a year-on-year decrease of 6.19%; The seed income of hybrid maize was 1.015 billion yuan, accounting for 28.97%, with a year-on-year increase of 2.74%; The income from vegetables, fruits and seeds was 287 million yuan, accounting for 8.18%, a year-on-year decrease of 2.62%. In addition, in 2021, the company made an impairment of 493 million yuan for inventory and other assets, and benefited 416 million yuan from the transfer of Longping Jinyu Bio-Technology Co.Ltd(600201) contribution. The annual net interest rate of the company is 46.12%. 62 million yuan, down year-on-year
The opening of genetically modified is imminent, and the company has obvious first mover advantage.
Relying on the two main bodies of Hangzhou Ruifeng and Longping biology, the company carried out the development of insect and herbicide resistant maize genetic characters and the transfer of transgenic maize varieties. Hangzhou Ruifeng transgenic corn products Ruifeng 125 and Ruifeng 8 obtained the safety certificate for production and application; The research and development of insect resistance and herbicide resistance of Longping bio transgenic maize has also made a phased breakthrough. Yufeng 303, the company’s market leading corn variety, has completed the preparations for the industrialization of biological breeding, and the product lines of corn varieties and transgenic traits have been further enriched. If the GM policy is liberalized, the company is expected to obtain a first mover advantage.
Earnings forecast, valuation and rating
It is estimated that the company’s revenue from 2022 to 2024 will be RMB 3.888/4.324/4.949 billion respectively, with year-on-year changes of 10.36% / 11.83% / 14.47% and 492.20% / 45.41% / 37.41% respectively, and EPS will be RMB 0.28/0.41/0.56 respectively, corresponding to PE of 55x / 38x / 27x respectively. The company advanced the GM track, deeply benefited from the boom of this round of corn seed cycle, and maintained the “buy” rating.
Risk tips
The launch of new products did not meet expectations; Product price fluctuation risk; Natural disasters affect seed production
