Performance
According to the annual report released by the company in 2019, the company's operating income in 2019 was 1.05 billion yuan, an increase of 22.17% over the same period last year, and the net profit returned to its mother was 150 million yuan, an increase of 253.72% over the same period last year.
Analysis.
On the whole, the company's performance in 2019 is basically in line with the performance forecast. on the one hand, affected by the increase in the sales price of food additive products, the product profit increased significantly, on the other hand, the company acquired Jiuling Pharmaceutical in February 2019, benefiting from the gradual release of subsidiary capacity, the company's performance increased significantly, contributing 45.69 million yuan to the company's net profit in 2019, accounting for about 30% of the company's overall profit.
We will continue to promote the construction of the three major bases and build a pattern of coordinated regional development. In 2019, the company successively laid out and planned the Zhaodong biological fermentation industrial base (investing 680 million yuan to build a 10,000-ton nucleotide product production line) and Huaiji green health industrial base (investing 345 million yuan to build 5000 tons of NC products, 300t / year inosine, 900t / year proline and 150t / year ribavirin). Through the construction of the two bases, combined with the Sichuan Jiuling Pharmaceutical subsidiary acquired by the company. The company will realize the coordinated industrial layout of South China, Southwest and Northeast China. The company divides the production line of the existing base into two-way, making use of the price advantage of northeast corn and coal to reduce the production cost of nucleotide products, while upgrading and reforming the pharmaceutical health products in the new base, while expanding the production capacity of natural green health compound condiment (NC products), optimize the production process of the original products and improve the production efficiency of the products.
Two-line layout of food additives and pharmaceutical products to achieve the long-term development of the company. The company has been engaged in the field of biological fermentation and biochemical industry for a long time, and has formed the layout of the three major fields of food, feed and medicine. In recent years, through the adjustment of industrial structure, it has gradually stopped the feed business and continuously strengthened the business in the field of food additives and medicine: the company is the earliest enterprise in China to lay out Iambig products, and it is one of the three major suppliers in China, through the layout of Zhaodong base. The company will further optimize the production cost of nucleotide products, and at the same time, the NC products that the company has cooperated with Nestl é for many years will quickly enter large-scale production, realizing the dual product support of the food additive business. In the pharmaceutical field, the company breaks the production capacity bottleneck of Jiuling Pharmaceutical subsidiary based on the layout of original pharmaceutical intermediates and APIs, and realizes the rapid development of the company's pharmaceutical business.
Investment suggestion
The pharmaceutical sector of the company has benefited from the optimization of the industry pattern and the release of production capacity, and continues to achieve rapid growth. NC products in cooperation with Nestl é are expected to drive the company's long-term growth, but considering the downstream demand for iTung products affected by the epidemic and the price drop, the company's profit forecast for 2020 is reduced by 45%, and the company is forecast to maintain a "buy" rating of RMB 0.20,0.24,0.28 in 2020-2022.
Risk hint
The production and sales of food additives and other products are affected by the epidemic; the relocation of the base affects the production and sales of products in the short term.