This report is read as follows:
The company's 2022Q1 performance exceeded expectations, mainly due to the improvement of the industry boom and business structure optimization; the seed industry is expected to continue, the industry will usher in an era of improved seed competition, the company has high R & D strength is expected to fully benefit.
Hope that the capital exceeds the expected point. :
Maintain and increase holdings. Due to the adjustment of the company's business structure, the EPS of 2022 and 2023 has been raised to 0.36 and 0.46 yuan respectively (the previous value is 0.30 and 0.39 yuan), and the EPS of 2024 has been raised to 0.6 yuan. Taking into account the fact that the promotion of genetically modified genes is higher than expected, the industry ecology is good, the company's R & D strength is strong, and in February 2022, the company's targeted additional issuance agencies are listed on the market, and the total share capital is increased, so it is given a target price of 20.22 yuan to maintain the "overweight" rating.
Event: the company released its annual report in 2021 and quarterly report in 2022. In 2021, the company realized 2.521 billion yuan in revenue, an increase of 57.38%, and its net profit in 2022Q1 increased by 26.68%. 2022Q1 realized revenue of 440 million yuan, an increase of 49.7% over the same period last year, and net profit increased by 1085.5%.
The company's 2022Q1 performance exceeded expectations, mainly due to the improvement of the industry boom and the optimization of the company's business structure; in history, the company's Q1 is the off-season, but with the improvement of the company's business structure in recent years, Q1 gradually contributes profits. In terms of sub-business, the company's rice seed income is 1.2 billion yuan in 2021, which goes hand in hand with Longping Hi-Tech, the first in the industry; corn seed plate focuses on silage corn and other subdivisions, with an income of 218 million yuan in 2021 and continuous extension of mergers and acquisitions; order agriculture achieved an income of 724 million yuan in 2021, and the company continues to optimize the order management model and upgrade the information system. Other operating indicators developed steadily. 2022Q1 inventory was 919 million yuan, inventory remained low, and advance receipts decreased slightly by 2.9% compared with the same period last year.
The high demeanor of the seed industry is expected to continue, and the industry will usher in an era of improved seed competition; at present, grain prices at home and abroad are in a business cycle, and the demand of the seed industry as the upstream of agricultural products is rising; at the same time, the seed industry is revitalized and set the tone, and the supply of new varieties is optimized and superimposed GM commercialization. High-tech companies hope to benefit.
Risk hints: epidemic disease risk, product price fluctuation risk, raw material price fluctuation risk.