The anti-products and agriculture and animal husbandry sector performed well last year, and the financial expenses decreased, helping the company to achieve profit growth. The company achieved operating income of 1.927 billion yuan in 2020, down 5.90% from the same period last year, and realized a net profit of 166 million yuan, an increase of 30.51% over the same period last year. The reason for the profit growth is mainly due to the substantial increase in the performance of the company's alternative antibiotic feed additive products under the influence of the policy of banning the addition of growth-promoting antibiotics in commercial feed since July 1, 2020; the company's agricultural and animal husbandry sector has increased its marketing efforts to promote the sales of new products, while the cost of old products has decreased and profits have increased; the company has reduced interest on loans and reduced financial expenses.
The stock incentive scheme has been issued, awarding 6.92 million Class II restricted shares to 86 subjects for the first time.
At the company level, restricted stock ownership has performance assessment requirements for 2021-2023, that is, to assess the company's performance indicators year by year, in order to achieve the performance evaluation target as one of the ownership conditions of the incentive object in the current year. The total cost of this incentive plan is 28.3028 million yuan in amortization from 2021 to 2024. from the point of view of the company, the incentive helps to stimulate the enthusiasm of the management and business team, improve operating efficiency and reduce operating costs. it will play a positive role in improving the company's long-term performance.
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 0.34,0.48,0.63 yuan, corresponding to the PE of 27 times, 19 times and 15 times respectively, maintaining the "overweight" 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.