Forecast return net profit 3000-40 million yuan, an increase of 62.60-116.80% over the same period last year: the company recently released a performance forecast for 2021, which is expected to achieve a return-to-home net profit of 3000-40 million yuan, an increase of 62.60-116.80% over the same period last year. The main reasons include two aspects: first, the company's gelatin series business is developing steadily, the market demand is improving, and we are actively developing high value-added products. The company's gelatin products have gradually changed from the current general application market to the layout of high value-added areas such as medicine and beauty. Sales volume and sales revenue have further increased compared with the same period last year, and sales profits have increased accordingly. Second, benefiting from the continuous in-depth promotion of the company's "collagen +" series products, the application field of collagen has been expanded, the sales channel has been continuously improved, the investment of resources has been continuously increased, and the brand awareness has been further improved. the business of collagen series terminal products has developed steadily. In addition, the contribution of the company's non-recurrent profit and loss to net profit is expected to be 80-10.4 million yuan in 2021, an increase of 140.71-3.8071 million yuan over the same period last year. The company's non-recurrent profits and losses are mainly refinancing government incentive funds received, high-tech enterprise recognition incentive funds, government subsidy funds affected by the epidemic and deferred income amortization to current profits and losses.

Focus on the whole industry chain of gelatin + collagen, omni-directional layout of medical health and food, and clear health strategy: the company is one of the leading enterprises in the domestic gelatin industry and one of the few A-share enterprises that focus on the whole industry chain of collagen, forming a production, R & D, sales and service system of high-quality bone particle base-gelatin-collagen-nutrition and health products-medicinal materials, and has formed a good brand effect and customer reputation over the years. At present, the company has developed into products such as gelatin and hollow capsule, collagen peptide, plasma substitute gelatin, double protein artificial meat, collagen mask, fruit drink and so on. Adhering to the corporate mission of "focusing on collagen, continuous innovation and the pursuit of health", the company is committed to achieving the strategic goals of the leading modern collagen biotechnology enterprises, focusing on the four major directions of medicine, health, food and make-up. Maintain green, healthy and sustainable development. The company will pay close attention to the main line of "collagen biological core raw materials and service suppliers", focusing on the research and development, production and sales of high value-added products; through technological innovation, foreign cooperation and other measures to accelerate product serialization, actively promote the upgrading and transformation of enterprises, and build a national leading brand.

Guoen shares take shares and hold shares, accelerate the integration of resources, continue to improve competitiveness, and have broad prospects for industrial development: the company's previous announcement, shareholder structure optimization and adjustment, Guoen shares (stock code: 002768) in the form of participation in Dingzeng + agreement transfer, a total of 21.18% of the shares of the company are held and become the controlling shareholder of the company. The change of the actual controller helps to clarify the thinking of future development, which is embodied in: (1) Guoen shares, the controlling shareholder, has a large chemical industry background and is optimistic about the big health industry, and is currently actively building a dual-industry model of chemical and biomedical health care products. in the future, the company will make full use of its high-quality industrial resources, accelerate industrial integration, give full play to the business synergy with the company, and enhance the company's competitive advantage in the business field of gelatin industry chain. Expand the in-depth development of collagen industry and enhance the company's core competitiveness, anti-risk ability and sustainable development ability. (2) after the Guoen share holding company, a general election has been held for the board of directors, the board of supervisors and senior managers. Mr. Wang Aiguo was elected chairman of the company, and a new senior manager was appointed. While retaining the original backbone and adding fresh blood, Wang Aiguo is the chairman and actual controller of Guoen shares, the largest shareholder of the company, and the management of the company will maintain the established strategy of the company. In-depth study of the market prospects of "collagen +" products and the shortcomings that restrict the development of the company, under the leadership of the new leader to optimize the operation ideas, the future prospect is expected to be clearer.

Collagen series products continue to launch, C-terminal layout is becoming more and more perfect: the company's collagen product brand "Yuansu" has been gradually adjusted. Tmall's official flagship store has put on the shelves new products such as "fresh Bovine Bone Collagen Peptide Peptide Powder", "Collagen Sodium Hyaluronate Vitamin C Powder", "Collagen Peptide Blueberry Juice Beverage" and other new products. It can be seen that the company's collagen products have gradually improved in layout. As the promotion efforts of the company continue to increase, it is expected to gradually increase the volume in the future.

Investment suggestion: the company is committed to building a world-class modern collagen biotechnology enterprise, around "collagen +", the future will focus on the layout of medicine, health, food, cosmetics four major directions, to maintain green, healthy and sustainable development. With the rapid development of the collagen industry and the continuous introduction of new products, the company's revenue is expected to achieve sustained growth. We predict that the EPS of the company from 2021 to 2023 will be 0.07yuan, 0.10yuan and 0.13yuan respectively, and the corresponding PE will be 103X, 70X and 54x respectively, maintaining the investment rating of "increasing holdings".

Risk tips: the risk of purchasing major raw materials, the risk of further expansion of production capacity leading to product sales, the expansion of business scale may bring management risks, and the risk of mismatch between input and return may exist in the process of market expansion of retail series products. raw material price fluctuation risk, COVID-19 epidemic related risk, Yiqing biological acquisition or integration does not meet expectations.