Event: the company's annual operating income in 2019 was 1.782 billion yuan, an increase of 9.42% over the same period last year; the net profit of shareholders belonging to listed companies was 185 million yuan, up 13.02% from the same period last year; and the net profit of shareholders of listed companies after deduction was 146 million yuan, down 4.22% from the same period last year, corresponding to 0.29 yuan of EPS. From a quarterly point of view, the company achieved revenue of 534 million yuan in the fourth quarter, an increase of 28.63% over the previous quarter.
The scale advantage is big, the technical experience is rich. At present, the company is the largest chlortetracycline production enterprise in the world, with an annual production capacity of 53000 tons, accounting for half of the global total production capacity. At the same time, the company has nearly 30 years of experience in feed chlortetracycline production and mastered advanced production technology and practical experience. Independent research and development of bacteria has a short production cycle, high degree of automation, low cost and other competitive advantages. During the reporting period, the operating income of chlortetracycline-related business reached 1.06 billion yuan, an increase of 1.8% over the same period last year, accounting for 59.5% of the operating income.
Further increase investment in research and development. The company acquired Ptek in 2016, built an international R & D platform and introduced technical talents with international vision. at the same time, the company's headquarters also has autonomous region-level R & D centers and postdoctoral workstations to strengthen technical cooperation and personnel training. The company spent 60.7 million on R & D in 2019, accounting for 3.4% of revenue, an increase of 0.9% over last year.
Promote process control and improve gross profit margin of additive business. In 2019, the company continues to promote the management mode of "process control team", strictly control the process point, achieve high yield and low consumption, and promote the use of starch milk in fermentor to reduce cost. During the reporting period, the gross profit margin of the company's veterinary drug additive business increased by 4.4 percentage points to 50.3%, and the gross profit margin of starch and associated products increased by 1 percentage point to 8.6%.
Profit forecast: we predict that the net profit attributed to the parent company from 2020 to 2022 will be 225 million yuan, 255 million yuan and 264 million yuan respectively, and the corresponding EPS will be 0.35,0.40,0.42 yuan respectively, and the current stock price will be 22.5 pounds 19.8 pounds 19.2 times. The epidemic had little impact on the company's performance in the first quarter, with steady progress in product development, a large increase in revenue compared with the same period last year, and a large improvement in the company's valuation, giving a "recommended" rating for the first time.
Risk tips: the risk of the epidemic affecting product sales; the risk of declining prosperity of the industry; the systemic risk of capital market, and so on.