\u3000\u3 Shengda Resources Co.Ltd(000603) 566 Pulike Biological Engineering Inc(603566) )
Event:
1) the company released the 2021 annual report, and the company’s operating revenue was 1.099 billion yuan, a year-on-year increase of 18.31%; The net profit attributable to the parent company was 244 million yuan, a year-on-year increase of 7.2%, deducting the growth rate of non net profit by 21%.
2) in the first quarter of 2020, the company’s operating revenue was 245 million yuan, a year-on-year decrease of 20.54%; The net profit attributable to the parent company was 37.523 million yuan, a year-on-year decrease of 56.8%, and the deduction of non net profit decreased by 59% year-on-year.
The downstream pig breeding price is cold in winter, and the company’s short-term performance is under pressure
In 2021, the operating performance hit a new record, in which the company’s sales revenue of pig vaccine reached 388 million (a year-on-year increase of 47%); The sales revenue of avian vaccines and antibodies was 382 million (a year-on-year increase of 7%); The sales revenue of chemical drugs was 304 million (a year-on-year increase of 6%). In the first quarter of 2022, the company faced multiple pressures: 1) since the beginning of this year, the price of live pigs has decreased significantly, from 16 yuan / kg at the beginning of this year to less than 12 yuan / kg, which is significantly lower than the price of about 30 yuan / kg in the same period last year. The number of fertile sows continues to decrease, and the demand of downstream farmers for animal protection products has weakened significantly. 2) Covid-19 epidemic has led to difficulties in external sales of animal protection products and increased logistics costs. The company’s performance in 2022q1 was under pressure, and its revenue decreased by 21% year-on-year, of which the revenue of pig vaccine decreased by 24%; The sales revenue of avian vaccines and antibodies decreased by 11%; The income of chemicals decreased by 29%, and the technology licensing or transfer business increased by 75%.
The main products have maintained a high profit level, and the strategy of large single products and large customers has been resolutely promoted
In 2021, the sales 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 above the average level of the industry. The gross profit margin of the company’s porcine vaccine reached 82.35% (increased by 4.02 PCT year-on-year), reflecting the strong market competitiveness of the company’s products. The proportion of direct sales of the company reached 54.81% in 2021, an increase of 5.3pct over the same period last year, and the promotion of key customers of the company was effective. In terms of African classical swine fever vaccine, the company has made leading research and development progress. The African classical swine fever subunit vaccine developed by the company in cooperation with lanveterinary research is improving relevant experimental research in accordance with the requirements of the Ministry of agriculture and rural areas for emergency evaluation data of African classical swine fever subunit vaccine and the guiding principles of vaccine immune efficacy; The bivalent three component subunit vaccine of swine foot-and-mouth disease (type O + type A) is in the late stage of preclinical research, and it is expected to submit a clinical trial application within 2022; Highly pathogenic avian influenza (H5 + H7) recombinant trivalent subunit vaccine (baculovirus vector) obtained clinical trial approval. In addition, the company has made solid progress in pet products. Among the pet vaccines, canine quadruple vaccine and cat triple vaccine will be applied for clinical trials soon; The canine double vaccine has entered the stage of new veterinary drug registration; Several pet chemical products have been approved for clinical trial filing.
Optimistic about the company’s long-term development prospects, continue to recommend:
Considering the factors such as the continuous downturn of pig price in the first half of 2022 and the possible continuation of the impact of covid-19 epidemic, we adjust the company’s profit forecast. We expect the company’s EPS to be 0.83, 1.18 and 1.45 yuan / share from 2022 to 2024 (the previous value is 1.29 and 1.64 yuan / share from 2022 to 2023); The corresponding PE is 25, 17 and 14 times. Maintain the “buy” rating.
Risk warning: risk of product research and development; Risk of market competition; Risk of animal disease
