Performance summary: the company achieved operating income of 1.91 billion yuan in 2020, a year-on-year change of-6.5%, and the return net profit was 160 million yuan, an increase of 26.8% over the same period last year.
Performance changes are affected by the overall impact of multi-business sectors. The decline in operating income was mainly due to the decrease in sales volume caused by the new adjustment of hydrocortisone route by biomedical subsidiaries during the reporting period, and the substantial increase in the performance of agricultural and animal husbandry companies replacing antibiotic feed additive products. at the same time, the company increased marketing efforts, increased sales of new products and reduced the cost of old products, and improved profitability. In terms of costs, due to the reduction in interest on financing loans, financial expenses have been effectively controlled, which is 11.6% lower than the same period last year
As one of the largest suppliers of feed enzyme preparations, the company is expected to benefit from increased downstream demand in the future. 2020 in the company's revenue, the enzyme preparation accounts for 560 million yuan as a whole, and the enzyme preparation business takes the feed enzyme preparation as the core product, including phytase, xylanase and so on. The price of corn remains high. As of April 2021, the average spot price of corn in China has been maintained at about 2900 yuan per ton, which is much higher than the average level in previous years, while the price rise of corn as the main component of feed raw materials may affect the feed ratio. According to the increase in the proportion of wheat as feed brought about by the rise in corn prices in the past, it is reasonably predicted that the proportion of wheat in feed will increase in the future, and the demand for corresponding digestive enzymes and xylanase may increase. The performance of the corresponding companies will also usher in growth. And the company pays attention to research and development and product renewal, and will further open up the market of ruminant feed additives and aquatic feed enzymes in the future, expand market share, and upgrade existing products to improve production efficiency.
At present, Yidoli is the only production and sales enterprise in China, which is highly competitive in the market. In order to ensure food safety and promote green breeding, feed production enterprises in China began to ban resistance in July 2020.
The company acquired Shiwei Science and Technology in 2018 to lay out the market after the "ban" work. Cortex cordata extract has the functions of antibacterial, anti-inflammatory, appetizer and promoting growth, which can reduce animal diarrhea rate and increase feed conversion rate. and low toxicity, no drug resistance, no rest period, the company's feed additive income reached 200 million yuan in 2020, an increase of 72.7% over the same period last year, and is expected to maintain rapid growth in the future. The effective parts of Bopp total alkaloids and their preparations as Chinese veterinary drugs also have high development value in livestock and poultry feed. it can be made into veterinary natural drugs such as antibacterial, anti-inflammatory, liver and kidney protection, which is still in the stage of development. In addition to variety anti-antibiotic products, the company actively develops compound anti-drug products, such as Boyikang, which makes use of the synergistic effect between glucose oxidase and Boluohui powder to improve the efficiency of anti-replacement.
Profit forecast and investment advice. It is estimated that the EPS from 2021 to 2023 is 0.45,0.63 and 0.87 yuan respectively, and the corresponding PE is twice as much as that in 21-15-11. The average PE of the same industry in 2021 is 25 times, taking into account the company's leading position in the industry and mature operation model, reasonable premium, given 30 times PE, to "buy" rating, the target price 13.5 yuan.
Risk hints: downstream demand for Macleaya falls short of expectations, sales of enzyme products fall short of expectations, market recovery of steroidal raw materials is not as expected, and so on.