Incidents:
On March 25, Pailin Biotech announced that its subsidiary Baiquan Pulp Station Company, a subsidiary of Pasfique, received a “Single Plasma Collection License” issued by the Heilongjiang Provincial Health Commission. Baiquan Plasma Station can officially collect pulp from the date it obtains the “Single Plasma Collection License”. Achieving pulp collection at Baiquan Plasma Station is conducive to improving the company's raw plasma supply capacity, improving the company's operating performance, and has a positive effect on the company's long-term development.
Baiquan Pulp Station was officially mined, and Pasfique's pulp collection volume is expected to continue to grow:
Pailin Biotech currently has 38 pulp stations, including 19 Shuanglin Biotech (13 Shuanglin+6 Deyuan) and 19 Pacifico. By the end of 2023, Pacifico had a total of 14 pulp stations and 5 pulp stations under construction. Baiquan Pulp Station is the first pulping station to be certified for mining this year, and the other 4 pulping stations under construction are also expected to be completed and tested one after another. As Pacifico successively certifies mining at construction stations, Pasfique's pulp collection volume will steadily increase, and the certainty of the steady growth of the company's performance will further increase.
The company has a high level of execution, and all processes are progressing rapidly:
After the entry of Shaanxi Coal, the company's various processes progressed efficiently and rapidly, showing high execution and management efficiency. Since March, Shuanglin and Deyuan have signed a supplementary strategic cooperation agreement, further increasing Deyuan's pulp supply; the company signed a ten-year exclusive Jingjing distribution agreement with the Pakistani distributor 3A, providing strong impetus for the company's products to go overseas and grow steadily over the long term. We expect that the company's net profit for 2023-2025 will be 60/ 7.7/940 million yuan, respectively, and the corresponding EPS will be 0.82/1.05/1.28 yuan, respectively. The PE corresponding to the current stock price is 34.19/26.65/21.92 times, respectively. We continue to recommend and give it a “buy” rating.
Risk warning:
The amount of pulp collected falls short of the expected risk; the risk of product sales falling short of the expected risk; the launch of a new product falls short of the expected risk.