\u3000\u3 Guocheng Mining Co.Ltd(000688) 639 Anhui Huaheng Biotechnology Co.Ltd(688639) )
Event: Anhui Huaheng Biotechnology Co.Ltd(688639) released the annual report of 2021. During the reporting period, the company achieved a revenue of 954 million yuan, a year-on-year increase of + 95.81%; The net profit attributable to the parent company was 168 million yuan, a year-on-year increase of + 38.92%. Among them, 2021q4 company achieved a revenue of 333 million yuan, a year-on-year increase of + 162.81% and a month on month increase of + 37.85%; The net profit attributable to the parent company was 66 million yuan, a year-on-year increase of + 84.12% and a month on month increase of + 65.6%. The company plans to distribute a cash dividend of 5.51 yuan (including tax) to all shareholders for every 10 shares. The company released the first quarterly report of 2022, and achieved a revenue of 270 million yuan during the reporting period, a year-on-year increase of + 63.81%; The net profit attributable to the parent company was 55 million yuan, a year-on-year increase of + 77.68%.
The performance of 22q1 is in line with expectations, and the raised investment projects are gradually in large quantities. According to the announcement, the company's fund-raising project Bayannur 25000 tons alternating production of alanine and valine project and Qinhuangdao fermentation alanine technical transformation and expansion project were partially put into operation as planned. In 2021, the output of amino acid products increased by 96% to 49000 tons year-on-year, and the sales volume increased by 79% to 47900 tons year-on-year, which was the main reason for the significant year-on-year growth of performance; On the cost side, according to Zhuo Chuang information, the price of glucose, the main raw material, rose sharply year-on-year in 2021. Since 22q1, the price has declined, with a month on month ratio of - 8%. The profit side of amino acid products has been repaired. Corresponding to 21q4 and 22q1 companies, the gross profit of 119 and 105 million yuan, the gross profit margin of 35.7% and 38.9%, and the expense rate (four fees & taxes) is 15% and 17%. The feed industry is the main downstream application field of valine products. Under the influence of the "prohibition order" and "reduction and substitution of corn soybean meal", with the continuous growth of the overall market scale of the feed industry in the future, the consumption of valine in livestock feed will be further expanded, and the landing of the company's new production capacity is expected to usher in a rapid volume.
Steady progress has been made in projects under construction, strengthening R & D and talent and technology reserves, and deepening industrial layout. In terms of construction in progress, it was announced that the remaining part of the company's raised investment project, the three branched chain amino acid and its derivatives project of Bayannur base and the beta alanine derivatives project of Changfeng base were steadily promoted, and the new amount in the future can be expected. In terms of R & D, according to the announcement, the company spent 53 million yuan on R & D in 21 years, a year-on-year increase of + 75%. For the traditional chemical industry, synthetic biology technology produces chemicals through customized cell factories, which is of subversive significance in terms of resource sustainability, energy consumption, environmental protection and production efficiency. In addition to high-intensity R & D investment, on the one hand, the company, Cooperate with the Chinese Academy of engineering to build Huaheng green biological manufacturing academician workstation to reserve technology and talents for industrial development. On the other hand, the company has established a research institute and actively introduced overseas high-end talents to improve the industrialization path of the combination of strain construction, small and medium-sized pilot scale-up and factory scale production. At present, the company has realized fermentation production β- For the industrialization of arbutin technology, in the future, it is proposed to establish a subsidiary, Huaheng flavor, Lihe biological terpene products (such as sandalwood, rose essential oil, etc.) and bio based products (such as 1,3-propylene glycol), so as to deepen the industrial layout and enhance the comprehensive competitiveness of products.
Investment suggestion: we expect the net profit attributable to the parent company from 2022 to 2024 to be 242 million yuan, 365 million yuan and 464 million yuan respectively, maintaining the overweight-a investment rating.
Risk tip: the price of raw materials fluctuates, the growth rate of product demand is lower than expected, and the production capacity construction progress
