Since its establishment, the company has been ploughing deeply in the field of medicine and animal health products, and its performance has grown rapidly. The company is mainly engaged in the R & D, production and sales of related products in the field of medicine and animal health products, mastering the advantage of industrial chain integration in the two major sectors of medicine and animal protection, with the business of raw materials as the core, and upward mastering the manufacture of key pharmaceutical intermediates. extend down to the preparation. From 2017 to 2021, the revenue CAGR reached 11.59%, and the return net profit CAGR reached 41.12%. Revenue in the first three quarters of 2022 reached 4.113 billion yuan, an increase of 28.01 percent over the same period last year, and net profit in the first three quarters reached 721 million yuan, an increase of 38.38 percent over the same period last year.
The company ploughs the animal chemical race track, and its market share is expected to continue to increase. Since its inception, the company has continued to replicate and develop veterinary antibiotics, anti-insecticidal drugs and animal protection raw drug products, accounting for 34% of the revenue of the animal protection plate in 2021. The company has obvious brand advantages such as florfenicol, enrofloxacin and doxycycline, and is the main supplier of special raw materials for animal protection, such as Marbofloxacin, sarafloxacin, diclazuril, cypromazine, kammycin and so on. In the future, with the release of production capacity, the company's market share is expected to continue to increase, while the feeding cycle upward drive the demand for animal protection products.
The pharmaceutical sector is growing steadily, and the integration of APIs and intermediates promotes long-term profitability. The company is one of the world's largest suppliers of macrolides and quinolones, with high market share and prominent position in the industry, such as azithromycin, clarithromycin, roxithromycin and ciprofloxacin hydrochloride. The company continues to create an integrated layout of intermediate-API-preparation industry chain. In 2021, the company's revenue from raw materials was 1.55 billion yuan, accounting for 34% of the revenue, and the intermediate realized revenue of 1.28 billion yuan, accounting for 28% of the revenue.
Profit forecast and rating: based on the gradual release of the company's production capacity and the continued increase in the market share of the animal protection sector, it is estimated that the company's overall revenue in 2022-2024 is 55.97 billion yuan, an increase of 24.2%, 18.3% and 15.7% over the same period last year. From 2022 to 2024, the net profit of returning to the mother was 976 yuan, 1.409 billion yuan respectively, an increase of 38.3%, 23.8% and 24.5% over the same period last year. Give the company 16 times PE in 2023, corresponding to the target price of 35 yuan per share, and give a "buy" rating for the first time.
Risk hints: industry policy change risk, product quality control risk, raw material price change risk