\u3000\u3000 Cabio Biotech (Wuhan) Co.Ltd(688089) (688089)
In 2022, the new national standard is expected to accelerate the implementation and maintain the “buy” rating
The feedback on the application of new national standard formula is positive, and the implementation of new national standard orders in 2022 is expected to accelerate. At the same time, the equity incentive scheme of the company was implemented, and the income assessment increased by more than 25% from 2022 to 2024, boosting the development confidence of the company. Considering the amortization of equity incentive expenses, the forecast of net profit attributable to the parent company from 2021 to 2023 was lowered to 137 million yuan, 193 million yuan and 288 million yuan respectively (144 million yuan, 215 million yuan and 299 million yuan in the previous time), corresponding to 1.14, 1.61 and 2.40 yuan of EPS from 2021 to 2023, and the current share price corresponding to PE was 52.2, 37.0 and 24.9 times respectively. In 2022, the implementation of new national standard orders accelerated and maintained the “buy” rating.
The implementation of the new national standard improves the certainty of performance and opens up more room for development in the international market
The recent feedback of the new national standard is relatively positive, and the level of addition is high. The new national standard for milk powder was implemented in February 2021. After implementation, it is expected to drive the demand for ARA and DHA to more than double, enhance the company’s performance certainty, and accelerate the order of the new national standard in 2022. At the same time, with the expiration of DSM’s patent in 2023, there is still room for a significant increase in the international market Cabio Biotech (Wuhan) Co.Ltd(688089) share in the medium and long term.
Bird’s nest acid has cut into the cosmetics market, opened the second growth curve and prospectively laid out the field of synthetic biology
Bird’s nest acid passed the filing of cosmetic raw materials at the end of June 2021 and obtained a 3-year patent period. From 2022 to 2023, it is expected to add 20 and 20 tons of production capacity respectively, and the long-term space of bird’s nest acid is expected to help the company open the cosmetics market. The company has mature application scenarios, stable customer relations and mature fermentation technology platform. It takes the lead in the layout of cards in the field of synthetic biology, and is expected to achieve greater breakthroughs in new product research and development and cost saving.
Timely launch equity incentive to boost development confidence
The company granted 1.8 million restricted shares (200000 reserved shares) to 48 core key personnel other than the chairman, accounting for 1.5% of the total share capital, and the grant price was 29.26 yuan / share (50% of the average price in the previous 20 trading days). The three-year compound growth rate is more than 25%. Unlock in three phases of 30% / 30% / 40%. Compared with the equity incentive in 2015, the company’s current round of incentive coverage is roughly the same, maintains a wide coverage, and tilts to the core technical talents and backbone talents in principle. The next three years will be a critical period for the company to accelerate its development, realize the international market, intelligent manufacturing and improve the technology platform. The introduction of equity incentive is expected to stimulate the morale of employees and better boost the development confidence of the company.
Risk warning: DSM’s non performance risk and food safety risk
