\u3000\u3 Shengda Resources Co.Ltd(000603) 566 Pulike Biological Engineering Inc(603566) )
The event company issued the annual report of 2021 and the report of the first quarter of 2022.
The performance maintained growth in the past 21 years, and the performance of 22q1 was greatly affected by the downstream. In the past 21 years, the company's revenue was 1.099 billion yuan, with a year-on-year increase of + 18.31%, of which pig vaccine, avian vaccine, antibody and chemical medicine contributed 388 million yuan, 382 million yuan and 304 million yuan respectively, with a year-on-year increase of + 47.23%, + 7.04% and + 6.27%; The net profit attributable to the parent company was 244 million yuan, a year-on-year increase of + 7.2%; The net profit attributable to the parent company after deduction was 185 million yuan, a year-on-year increase of + 21.05%. The company's comprehensive gross profit margin was 65.41%, with a year-on-year increase of + 1.09pct; During the period, the expense rate was 43.27%, with a year-on-year increase of -0.25pct, of which the sales expense was + 42.4% year-on-year, mainly due to the increase in the proportion of direct sales revenue and the increase in the salary of salespeople. In 2022q1, the company's operating revenue was 245 million yuan, a year-on-year increase of - 20.54%, of which the revenue of pig seedlings, poultry seedlings and chemical drugs was - 24%, - 11%, - 29% year-on-year increase; The net profit attributable to the parent company was 38 million yuan, a year-on-year increase of - 56.8%; The net profit attributable to the parent company after deducting non-profit was 35 million yuan, a year-on-year increase of - 59.22%; The gross profit margin of sales was 61.85%, with a year-on-year increase of -6.44pct; The expense rate during the period was 42.08%, with a year-on-year increase of + 8.27pct. Dividend plan: cash dividend of 2 yuan (including tax) for every 10 shares.
The gross profit margin of pig vaccines increased significantly, and the proportion of direct sales revenue increased. In the past 21 years, the company's output of live vaccines, inactivated vaccines, antibodies and chemical drugs was - 9.54%, - 2.27%, + 12.83% year-on-year; Among them, the sales volume of Inactivated Porcine round branch vaccine, porcine circular genetic engineering subunit vaccine, Inactivated Porcine Pseudorabies epidemic strain vaccine, chicken bursa series subunit vaccine (triple and quadruple) and other products increased significantly, exceeding the industry average level. The gross profit margins of the company's swine vaccines, poultry vaccines and chemical drugs were 82.35%, 60.98% and 48.94% respectively, with a year-on-year increase of + 4.02pct, -2.66pct and -3.86pct. In terms of sales channels, the company's direct sales model contributed 589 million yuan in 21 years, a year-on-year increase of + 31.15%, accounting for 54.14% of its main business income. The increase of the proportion of direct selling mode has a positive effect on the increase of the company's gross profit margin.
Consolidate the advantages of technology research and development and promote the development of new vaccines in multiple directions. In the past 21 years, the company invested 855723 million yuan in research and development, with a year-on-year increase of - 25.48%, accounting for 7.79% of revenue. It has obtained two national new veterinary drug registration certificates, such as Newcastle disease - infectious bronchitis - Avian Influenza (H9 subtype) - infectious bursal disease quadruple inactivated vaccine. During the promotion of the non plague subunit vaccine developed by the company in cooperation with Lanzhou Institute, the company improved the relevant experimental research in accordance with the requirements of emergency evaluation data required by the Ministry of agriculture and the principle of knowing the immune efficacy of the vaccine, and strive to submit the application for emergency evaluation as soon as possible. The bivalent three component subunit vaccine of pig foot-and-mouth OA developed by the company in cooperation with Lanzhou Institute may submit a clinical trial application in 22 years; The highly pathogenic avian influenza (H5 + H7) sufficient trivalent subunit vaccine cooperated with Harbin animal research institute has obtained the approval of clinical trial. In addition, the company fully promotes the construction of biosafety level III Laboratory (BSL-3 / absl-3), and the project is expected to be completed and accepted in 2023h1.
The company's wholly-owned subsidiary Huizhong animal insurance has formed a product R & D matrix aimed at import substitution, filling China's gap and preventing and controlling new diseases. At present, quadruple vaccine for dogs and triple vaccine for cats are about to be applied for clinical trials; The veterinary vaccine has entered the second stage of registration; The relevant production line of rabies inactivated vaccine (R3G strain) has passed the acceptance of the new version of veterinary drug GMP, and the product has obtained the product approval; Compound non pronone drops, a highly effective in vitro anthelmintic drug, has obtained 3 veterinary drug product approvals; Florfenicol and metronidazole ear drops have obtained product approval and achieved market sales. At the same time, the company actively explores Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels and is expected to accumulate a lot in the future.
Investment suggestion: the company has strong R & D capability and rich product reserves. As the downstream aquaculture industry enters the upward cycle, the vaccine will enjoy the post cycle market, and the potential performance growth of the company can be expected. We expect EPS to be 0.88 and 1.22 yuan in 22-23 years, corresponding to 21 and 15 times of PE, maintaining the "recommended" rating.
Risk tips
1. Risk of animal epidemic;
2. Risk of pig price fluctuation;
3. Quality risk
4. Risks of market competition, etc.
