Core views
As the world's largest production base for pyromycin, the company has an annual production capacity of about 55,000 tons of chlormycin, accounting for about half of the global production capacity. Currently, the company has formed a business layout of “three major sectors” + “six major fields”. Judging from the industry environment, the new version of the veterinary drug GMP has raised the entry threshold for the industry, which is conducive to removing backward production capacity and improving the quality and efficiency of the industry; in the context of a complete ban on feed, the future market for the promotion of chlormycin will increase significantly. The company plans a new production capacity layout. It is expected to be officially put into operation next year, adding 60,000 tons of production capacity; the production of chlormycin has high industry barriers, and the new production capacity is expected to further consolidate the company's leading position.
The company is actively deploying biological products such as pet medicine and non-distemper vaccines, which is expected to further boost the company's performance.
The leader in the kinmycin industry, the “three major sectors” + “six major fields” business layout As a leading enterprise in the veterinary kinomycin industry, the company has formed a business layout of “three major sectors” + “six major fields”. The company has an annual comprehensive production capacity of 55,000 tons of animal feed, and exports about 60% of its core product. It is the world's largest production base for fodder chloramycin.
The multi-dimensional business layout develops collaboratively, and the new production capacity plan consolidates its leading edge in the mobile insurance business. At the same time, the company has an obvious position of gold mycin. At the same time, it actively lays out pet medicine and non-plague vaccines, has a developed marketing network at home and abroad, and has expanded the sales network of chlormycin to veterinary vaccines, giving full play to the synergistic effect. Agricultural product processing and environmental protection business support ensure the normal operation of the main business, and the extension of the industrial chain is expected to bring about growth.
Profit forecast: The company's new production capacity is expected to further solidify its leading position. Demand for the chlormycin market is expected to expand further in the context of the feed ban, and the vaccine sector layout will also increase. Overall, the company is expected to achieve revenue of 2,622/32.42/3,921 billion yuan in 2023-2025, net profit of 173/2.35/310 million yuan, and EPS of 0.22/0.30/0.40 yuan/share, respectively. It is covered for the first time and given a “increase in holdings” rating.
Risk warning: risk of rising raw material prices, exchange rate risk, R&D risk, etc.