Core viewpoints
In the first three quarters of 2023, the Company realized operating income of RMB 929 million yuan, with a year-on-year growth of 12.25%, net profit attributable to parent company of RMB 179 million yuan, with a year-on-year growth of 39.78%; Q3 of 2023 realized revenue of RMB 314 million yuan, with a year-on-year decrease of 0.18% and a month-on-month growth of 1.63%, net profit attributable to parent company of RMB 61.6136 million yuan, with a year-on-year growth of 28.68% and a month-on-month growth of 18.40%. From January to September 2023, the company's biological products sector realized revenue of 628 million yuan, including 331 million yuan of pig vaccine revenue.(Year-on-year +8.89%), poultry vaccine realized revenue of 296 million yuan (year-on-year +10.03%), ruminant vaccine realized revenue of 898,500 yuan; chemical medicine plate realized revenue of 269 million yuan (year-on-year +19.69%), functional health care products (pets) realized revenue of 6.4003 million yuan (year-on-year +322.00%). The effect of large single product + large customer is remarkable, and the revenue proportion of large customer gradually increases, which strongly leads the company's performance growth. In the future, with the commissioning of the company's new production base and the continuous promotion of the strategy of "large single product"+"large customer", the company's performance is expected to further grow.
Event
The company disclosed the third quarterly report of 2023. In the first three quarters of 2023, the company realized operating income of RMB 929 million yuan, with a year-on-year growth of 12.25%, net profit of RMB 179 million yuan, with a year-on-year growth of 39.78%; Q3 of 2023 realized revenue of RMB 314 million yuan, with a year-on-year decrease of 0.18%, month-on-month growth of 1.63%, net profit of RMB 61.6136 million yuan, with a year-on-year growth of 28.68% and month-on-month growth of 18.40%.
Brief comment
1. Q3 Pig vaccine and chemical medicine under pressure, strengthen expense management and improve net interest rate. From January to September 2023, the company's biological products sector realized revenue of 628 million yuan, including pig vaccine revenue of 331 million yuan.(Year-on-year +8.89%), poultry vaccine realized revenue of 296 million yuan (year-on-year +10.03%), ruminant vaccine realized revenue of 898,500 yuan; chemical medicine plate realized revenue of 269 million yuan (year-on-year +19.69%), functional health care products (pets) realized revenue of 6.4003 million yuan (year-on-year +322.00%). In 2023Q3, the revenue of pig vaccine decreased by about 3% year-on-year, and the revenue of pig chemical medicine decreased by about 25%; the revenue of poultry biological products increased by about 9.92% year-on-year, and the revenue of poultry chemical medicine decreased by about 1.02% year-on-year.
In terms of profit margin, the gross profit margin of the company in the first three quarters of 2023 was 61.67%(year-on-year-1.26pcts), among which, the gross profit margin of pig vaccine increased by 1.5pcts year-on-year, poultry vaccine decreased by 0.6pcts year-on-year, and chemical medicine decreased by 3.7pcts year-on-year; the net profit margin of sales in the first three quarters was 19.29%(year-on-year +3.20pcts). The gross profit margin of sales in Q3 of 2023 was 61.48%(year-on-year-2.57pcts, month-on-month-3.04pcts), and the net profit margin of sales was 19.62%(year-on-year +2.82pcts, month-on-month +2.78pcts).
In terms of expenses, the sales expenses of 2023Q3 Company were 89.4035 million yuan (year-on-year-6.18%), the management expenses were 27.7531 million yuan (year-on-year +22.62%), the financial expenses were-1.2987 million yuan (year-on-year-2.73%), and the research and development expenses were 22.0778 million yuan (year-on-year-14.20%).
2. The strategic achievements of large customers are remarkable. The R & D layout of multiple plates consolidates the advantages of "large single product"+"large customer" with remarkable effect. The growth rate of pig ring vaccine, especially round branch dual vaccine, is more than 20%, which is significantly higher than the overall income growth level. For TOP30 Pig Group, the sales revenue of pig products increased by 21% year-on-year, which was higher than the growth rate of pig products business of the Company (17%). In terms of the proportion of large customers, the sales revenue of TOP 30 breeding group accounts for more than 40% of the total revenue of the company, and the revenue of TOP 30 pig breeding group accounts for nearly 65% of the total pig product revenue of the company. In the future, the company will continue to promote the strategy of large single products and large customers, and realize the continuous improvement of its own revenue and profitability. In terms of production base construction, the rapid progress of the new production base construction project of highly pathogenic avian influenza vaccine in Pule Ke (Nanjing) will greatly alleviate the existing capacity bottleneck problem.
At the same time, the company continuously promoted the research and development of non-pestilence vaccine, porcine pseudorabies live vaccine, highly pathogenic avian influenza (H5 +H7) trivalent sub-unit vaccine and other products, actively arranged pet track, and expanded pet health care product matrix. In the future, with the commissioning of the company's new production base and the continuous promotion of the strategy of "large single product"+"large customer", the company's performance is expected to further grow.
Profit forecast and rating: The Company continued to deepen the marketing strategy of "big customers"+"big single products" to help the Company grow against the trend against the background of the downturn in the breeding market. Looking forward to the future, the company will further promote the marketing strategy of "big customers"+"big single products" and continue to increase the research and development of new products in multiple sectors, which is expected to drive the continuous growth of the company's performance. It is estimated that the company will achieve operating income of 13.69/15.28/16.78 billion yuan from 2023 to 2025, net profit of 2.85/3.42/3.99 million yuan, EPS of 0.81/0.97/1.13 yuan respectively. The corresponding PE is 23.94x/19.92x/17.07x respectively, maintaining the "overweight" rating.