In 2021, revenue increased by 36% compared with the same period last year, and net profit increased by 98%. The company achieved operating income of 612 million yuan in 2021, + 36.39% year-on-year; net profit of 36 million yuan, + 97.74%; net profit of 27 million yuan, + 127.03%; and basic earnings per share of 0.06 yuan, compared with 0.04 yuan in the same period last year. From a quarterly point of view, Q4 company achieved operating income of 200 million yuan in 2021, + 35.29% year-on-year; net profit of 23 million yuan, + 187.77%; and non-net profit of 20 million yuan, + 288.13% of the same period last year. In 2022, Q1 company realized operating income of 228 million yuan, + 65.13% year-on-year; net profit of 24 million yuan, + 412.53%; and non-net profit of 23 million yuan, + 891.02%. The reasons for the rapid growth of the company's 2021 and 2022Q1 performance include three aspects:
I. the business of the company's gelatin series products has developed steadily, the market demand is improving, and the company has actively developed high value-added products. 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, sales channels have been continuously improved, resource investment has continued to increase, brand awareness has been further enhanced, and the business of collagen series terminal products has developed steadily; third, the company has acquired Yiqing organisms through mergers not under the same control and thickened its income. In addition, the contribution of the company's non-recurrent profit and loss to net profit in 2021 was 9.5641 million yuan, + 45.07% compared with the same period last year. It is mainly the refinancing government incentive funds received, the incentive funds identified by high-tech enterprises, the government subsidy funds affected by the epidemic and the amortization of deferred income to current profits and losses.
Excellent cost management ability, 22-year Q1 net interest rate increased by 7.5% compared with the same period last year. The company's gross profit margin in 2021 was 15.71%, year-on-year + 0.17pct. On the expense side, the company's expense rate during 2021 is 9.03%, year-on-year-2.28pct, in which the sales expense rate, management expense rate, R & D expense rate and financial expense rate are 1.69%, 4.89%, 2.12%, 0.33%, respectively, compared with the same period last year-0.35pct/-0.94pct/-0.10pct/-0.89pct.
The company's net interest rate in 2021 was 5.85%, year-on-year + 1.80pct. Quarterly, the company's 2021Q4 net interest rate is 11.08%, year-on-year + 5.79pct. The company's 2022Q1 net interest rate is 10.83%, year-on-year + 7.50pct. In 2022, Q1 company gelatin series products and "collagen +" series products have been continuously promoted, the business has improved steadily, and the sales profit has increased. Since Guoen holding Dongbao Biology, the company's strategy has been further improved and effectively promoted. The company is committed to providing users with high-quality "collagen +"
Series of products and services, fully combined with the company's product advantages and market advantages, carry out core work such as upgrading, optimization and adjustment of collagen products, and continue to promote the rapid layout in the field of "medicine, health, food and beauty". To achieve a further extension to the lower reaches of the industrial chain, which has taken an important step to better expand the main business and enhance the added value.
Collagen series products continue to be launched, and the layout of C-end is becoming more and more perfect. From a product point of view, the company's 2021 gelatin series products and by-product calcium hydrogen phosphate / collagen business achieved operating income of 552 million yuan / 39 million yuan, respectively, compared with the same period last year, + 36.13% and 1.79%, respectively, and gross profit margins were 14.61%, 26.52%, and + 0.17pct/5.19pct, respectively. 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 "Bovine Bone Collagen 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 series products have been gradually distributed and improved. With the continuous increase of the company's promotion efforts, it is expected to gradually increase the volume in the future. Help the company to build "the first brand of domestic collagen".
Yiqing Bio started the new capsule intelligent industrialization project, which is expected to complete the production capacity expansion of 60 billion tablets. Yiqing Biology's main products include gelatin hollow capsule, enteric-coated gelatin hollow capsule, hydroxypropyl methylcellulose hollow capsule and pullulan polysaccharide hollow capsule. Yiqing Bio has started a new capsule intelligent industrialization project, and on the basis of the existing annual production capacity of 30 billion capsules, it plans to complete the annual production capacity expansion of 60 billion hollow capsules in the next three years, in order to meet the growing demand for pharmaceutical capsules in the pharmaceutical and health products market. With the construction and commissioning of the planned project, the company is expected to further enhance its industry status and market share.
Organic fertilizer has become a new development direction of fertilizer industry, and Dongbao field has a broad market. Dongbao Datian, a subsidiary of the company, is mainly engaged in organic fertilizer and water-soluble fertilizer business, which has a broad market demand and is expected to be put into production in July and August 2022, respectively. In recent years, with the guidance of national policy and the development of green agricultural modernization, organic fertilizer products are welcomed by farmers because of their advantages such as soil improvement, soil fertility restoration and recycling waste, and become a new direction of fertilizer industry development. Dongbao Datian has established a cooperative relationship with South China Agricultural University and Inner Mongolia Agricultural University to jointly carry out product research and development and field experiments, laying the foundation for the follow-up diversified development of bio-organic fertilizers.
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. 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 of collagen. 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 2022 to 2024 will be 0.10,0.12,0.15 respectively, and the corresponding PE will be 66X, 53X and 44x 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, acquisition Yiqing biological integration may not meet the expected risk.