Core viewpoints
The company has been ploughing the field of special aquatic feed for nearly 30 years, and the products include shrimp feed, seawater fish feed, other special materials and general water feed. From 2018 to 2022, the company's feed sales increased from 863100 tons to 999300 tons, of which special water accounted for more than 60%. After the company's fund-raising project is put into production, the actual production capacity is expected to reach 1.56 million tons, breaking the capacity bottleneck to support the growth of the company's feed sales. The gross profit margin of 23H1 products is 10.84% (year-on-year improvement of 2.08pcts), thanks to the effectiveness of ① raw material substitution technology to effectively digest the unfavorable factors of rising prices such as fishmeal; ② optimizes product structure, launches a high-margin product portfolio, while restricting the sale of inefficient products; ③ production process transformation and upgrading led to the improvement of production efficiency. In the early stage, it is difficult for the company to pay back money due to the downturn of downstream farming, and the loss of credit impairment is more; in the second half of the year, as fish prices pick up, fish farmers resume, and it is expected that sales rebate may be improved. Throughout the year, affected by the downturn in the aquaculture market and extreme weather, the company's feed sales may decline slightly compared with the same period last year, and the improvement in profitability led to performance growth.
Company advantage
Deep ploughing special water feed for 30 years, the product quality is excellent.
The company's main products are a full range of aquatic feed, among which the core product shrimp continues to upgrade while consolidating its leading position, which continues to increase income and profits for farmers. In addition, the company continues to improve the product matrix, continue to develop sea bass, gold Pomfret and other new materials, looking for new growth points.
The marketing and service system continues to be complete, and the release of production capacity contributes to the company's business expansion.
The company increases the tilt of resources to benchmarking households, collects successful experiences and promotes them, so as to improve product sales. Yuehai Biology relies on feed companies to provide animal protection services, and the brand-new service system "Fish Live Source" empowers aquaculture. After the company's fund-raising projects are put into production, the actual production capacity is expected to reach 1.56 million tons, while the gradual completion and commissioning of the Vietnam plant will support the steady growth of the company's feed sales.
Profit forecast and rating: the company's revenue from 2023 to 2025 is estimated to be 7165,14,957 million yuan respectively, the net profit of its parent is 1.211206pm, and the EPS is 0.17mm0.29pm respectively, giving the "overweight" rating for the first time.
Risk analysis: product price fluctuation risk, sales decline risk, extreme weather and so on.