The company's three major businesses will make concerted efforts in the future, and the performance is expected to continue to maintain high growth.
The main results are as follows: 1) the sales of substitute products are good in the first three quarters, and the future production capacity reserve is sufficient, which is expected to account for a large market share in the 50-10 billion market. In the first three quarters of this year, the company's cumulative sales revenue of anti-resistance products exceeded 100 million yuan, an increase of more than 70% over the same period last year, and the gross profit margin of this sector is relatively high (about 60%), which optimizes the business structure of the company's products and increases the overall gross profit margin. In the future, the business of this sector is expected to remain high, and the company is expected to maintain high growth by virtue of first-mover advantage and channel advantage, and the company's revenue from this sector has the potential to double next year.
2) the sex hormone API project has entered the completion stage, and then trial production begins to do verification batches and product registration, and the production capacity is expected to start climbing after next year. Due to the scarcity of global production capacity and high gross profit margin of sex hormone APIs, the project will make a great contribution to improving the company's profit level and profitability after reaching production in the future.
3) the pig stock pen recovers obviously, the downstream demand is strong, and the feed enzyme is expected to maintain a steady growth in the year after next year; the production line of non-feed enzyme preparation (15000 tons of food-grade enzyme preparation) has been completed and put into production, and the product is expected to achieve domestic substitution.
Investment suggestion: the company is the domestic leader of biological enzyme preparation, with the whole industry chain from phytosterol to API finished products, and will increase the international layout in the future, and the prospective layout of alternative anti-products, with the product first-mover advantage and its own channel advantage, the company is expected to quickly seize the blue ocean market. It is estimated that from 2020 to 2022, the EPS of the company will be 0.41,0.57,0.73 yuan, and the corresponding PE will be 26.1,18.8,14.5 times respectively, maintaining the "recommended" rating.
Risk tips: epidemic diseases in the downstream aquaculture industry, natural disasters, periodic fluctuations in sales, bad debts in accounts receivable, project investment less than expected, market development less than expected.