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科拓生物(300858)公司点评报告:食用益生菌业务保持高增 带动公司盈利能力同比提升

Cotuo Biotech (300858) Company Review Report: Maintaining a high growth in the edible probiotic business led to a year-on-year increase in the company's profitability

方正證券 ·  Jul 31, 2023 16:00

Event: according to the company's semi-annual report for 2023, 1H23 achieved operating income of 140 million yuan, year-on-year-10.79%, net profit of 40 million yuan, year-on-year-10.01%, and non-return net profit of 32 million yuan,-12.53% of the same period last year. Among them, 2Q23 realized operating income of 68 million yuan, year-on-year-4.24%, net profit of 20 million yuan, year-on-year-5.12%, and non-return net profit of 14 million yuan,-16.13%.

From a business point of view, 1H23 Company's income from edible probiotic products / compound food additives / animal and plant microecological preparations / other products is 8625 yuan, which is 4190 yuan and 3.64 million yuan, respectively, which is + 60.53%, 48.39%, 54.00%, 14.14% and 14.14% respectively over the same period last year.

64.77% Universe 31.24% Universe 40.03% Plus 12.31%, respectively + 0.71pct/-14.42pct/-1.64pct/-8.79pct.

The consumption of probiotic products remains high, and the profitability is improved. 1) from the revenue side, benefiting from the society's concern about intestinal health, probiotic consumption is highly booming. 1H23's business income from edible probiotic products exceeds that of the traditional compounding business, accounting for 62%. As the most profitable and market competitive advantage of the company, it began to dominate the growth of the company. 2) in terms of profitability, the profitability of the edible probiotic products sector increased with the release of economies of scale. Among them, the wholly-owned subsidiary Jinhua Galaxy (the main body of the company's probiotic business) 1H23 achieved operating income of 82.26 million yuan, + 57.49% year-on-year; net profit of 36.33 million yuan, + 73.06% year-on-year, and net interest rate of 44.16%, an increase of 3.97pct over the same period last year.

The demand and cost of compound food additives are under pressure and fluctuate. 1) from the demand side, compounding is the company's traditional business. Affected by the downturn in the consumer market, the sales volume of 1H23's compounding business dropped 41% year on year. 2) from the cost point of view, the main raw materials of the compounding company are modified starch, pectin and Agar, of which starch is affected by market supply and demand. The price of starch rose by about 44% year on year in 2023, resulting in certain fluctuations in the company's compounding business income and gross profit margin during the reporting period. As consumption continues to recover, income declines are expected to narrow in the second half of the year. In addition, the proportion of revenue from 1H23 compounding business has dropped to 30%, and the impact on the company as a whole has gradually weakened.

In terms of animal and plant microecological preparations, the breeding industry is in a periodic recession, and the company actively distributes pet probiotics. 1H23 affected by the downturn in the aquaculture industry, the company's animal and plant microecological preparation business is not as expected. The company has actively distributed probiotic products for pets, reached strategic cooperation with New Ruipeng Group, and signed a three-year Strategic Cooperation Agreement, which is expected to increase its share in the pet probiotics industry in the future. In addition, the company's new production base is scheduled to be fully put into production in the fourth quarter of 2023, when the company's products will cover pigs, poultry, pets, aquatic products and other fields, with broad market prospects.

The improvement of business structure leads to the improvement of profitability, and the market and R & D investment lead to the increase of expense rate. 1H23 achieved a gross profit margin of 51.93%, year-on-year + 1.08pct, mainly due to the increase in the proportion of probiotic business with high profitability. The rate of sales / management / finance / R & D expenses of 1H23 company is 11.77%, 9.02%, 7.85% and 10.81%, respectively, compared with the same period last year, and the total 1.31pct of the four fees is increased by 1.31pct. Among them, the increase in the rate of sales expenses is mainly due to the company's increased investment in product promotion and promotion. the cost of advertising is 7.81 million yuan, an increase of 111% over the same period last year, accounting for 47% of the sales expenses; the investment in R & D is 15.12 million yuan, an increase of 37% over the same period last year, and the scale of superimposed income shrinks, resulting in an increase in the rate of R & D expenses; the decline in the rate of financial expenses is mainly due to the increase in interest income on time deposits purchased by companies. 1H23 achieved a net interest rate of 28.82%, year-on-year + 0.25pct.

Profit forecast and investment rating: the company is expected to achieve a net profit of 1.30 million yuan in 2023-25, an increase of 18.65%, 50.43% and 35.11% over the same period last year. The current market capitalization corresponds to the PE of 2023-25, respectively. Probiotics is a high prosperity track, the company's major customers develop stable landing, star strains and transfer models are recognized downstream, with the new capacity put into production, the company's growth will continue to show. Considering that the current traditional rematch business is a drag on the company's overall performance, it is downgraded to "recommended" rating.

Risk tips: big customers are less than expected, industry competition is intensified, production capacity construction is not as expected, industry norms are not as expected, and so on.

The translation is provided by third-party software.


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