Qingdao Ulan Biology Co., Ltd. was founded in 2005 and successfully listed on the main board of the Shanghai Stock Exchange in 2019.
The company is deeply engaged in the field of biotechnology, focusing on the three major businesses of enzyme preparation, microecology and animal protection, and its products have been widely used in feed, textile, washing, paper, food and other industries. In recent years, the company based on strong scientific research strength, actively expand food probiotics, brewing, plant extraction and other food industry new track, with continuous R & D investment and necessary production construction, full product structure, ushered in rapid development.
Relying on the increase in sales of enzyme preparations and micro-ecological plates, the company achieved an operating income of 1.15 billion yuan in 2021, an increase of 19.9% over the same period last year, a net profit of 130 million yuan, an increase of 21.7% over the same period last year, and a deduction of 90 million yuan in non-net profit, an increase of 9.7% over the same period last year. The company's enzyme preparation, microecology and animal protection business are tripartite. In 2021, the revenue of enzyme preparation, microecology and animal protection business accounted for 37.38%, 21.72% and 28.17%, respectively.
China's probiotic industry started relatively late, but under the encouragement and promotion of the national industrial policy, it burst out great development potential and is expected to become the next hundreds of billions of class track. The market size of probiotics in China was 55.3 billion yuan in 2017, rising to 88 billion yuan in 2020, with CAGR reaching 12.3%. It is expected to reach 106.5 billion yuan in 2022, ranking second in the world.
The probiotic industry chain is divided into two parts: the R & D and production of upstream strains and the application and sales of downstream probiotics. While the probiotics industry in China has a huge basic plate of the food industry, the downstream application scene of probiotics continues to expand, which has been extended to the end consumer goods market, such as beauty daily chemical. At present, China's probiotic market is highly concentrated and imported monopoly, but domestic probiotic strains are expected to gradually replace imported strains by virtue of their unique local advantages. Under this trend, the R & D and production of upstream probiotics will benefit more.
Azure Bio has established a probiotic joint venture company-Aidimeng Azure Biotechnology (Shandong) Co., Ltd., together with ADM, its products will face the global market. Aidi Union Blue Bio can directly utilize the existing probiotic technology and strain reserves of both sides, and can also form a global R & D network to develop new products through the probiotic science and technology centers of ADM in Spain (Biopolis), the United States (Deerland), the United Kingdom (Protexin), Wuxi Jiangnan University in Wuxi, China, and the Nutrition and Health Technology Center of Azure in Qingdao. At present, the probiotics factory of Aidi League Azure Biology International Standard is under smooth preparation. After it is put into production, the company's probiotic supply chain will be optimized, and the company's market competitiveness in the field of probiotics will be greatly improved. In addition, the company and Ximai Food signed a strategic cooperation agreement, the two sides will carry out technical and commercial cooperation in the direction of grain enzymatic hydrolyzed food and probiotic food.
In the short term, the company's performance is expected to follow the current situation of the downstream aquaculture industry, comply with the requirements of prohibitions and environmental protection, and get strong support. In the long run, the company has targeted the 100 billion-class track of edible probiotics, made efforts in the brewing industry, and reached cooperation with a number of industry giants, becoming a breakthrough in the company's future development.
Profit forecast, valuation and investment rating: we expect the company's operating income to be 1.111 billion yuan, 1.235 billion yuan and 1.39 billion yuan respectively from 2022 to 2024, an increase of-3%, 11% and 13% over the same period last year, and the net profit attributed to the parent company is 107 million yuan, 128 million yuan and 155 million yuan respectively, up-19%, 20% and 21% respectively. Cover for the first time, giving a "buy" rating.
Risk tips: research and development results are not as expected risk; market promotion and sales risk; downstream aquaculture industry cycle and epidemic outbreak risk; raw material price fluctuation risk; the public data used in the research report may have the risk of information lagging behind or not updated in a timely manner.