What happened: the company recently released its third quarterly report for 2022. In the third quarter, the company achieved revenue of 274 million yuan, an increase of 30.59%, a net profit of 19.8833 million yuan, an increase of 8.11%, and a net profit of 16.978 million yuan, an increase of 3.43%. In the first-third quarter of the company, the revenue was 671 million yuan, with a decrease of 9.98%; the net profit returned to the mother was 26.4059 million yuan, with a decrease of 77.95%; and the net profit from non-return was 18.3594 million yuan, with a decrease of 83.51%. The comments are as follows:
The reversal of the pig cycle has led to rapid revenue growth. After July 2022, pig prices rose sharply, and pig prices rose rapidly above the industry average cost line. Recently, pig prices reached a phased high (30 yuan / kg), and the profit of a single finishing pig reached the historic high before the occurrence of non-plague. Farms continue to make profits, making pig farms concerned about the survival rate of pigs, and the number and frequency of pigs using chemical drugs have increased significantly. The company is the company with the most complete product line of pig chemical preparations, and 166 veterinary drug approval numbers have been obtained by the end of 2021. The continuous high profits of downstream customers make the company's revenue grow rapidly. according to operating data, the company's revenue in the third quarter increased by 43.43% compared with the same period last year, an increase of 30.59% compared with the same period last year.
The decline in the price of purchased raw materials has fixed the gross profit margin of the product: the price of the raw material drug continued to decline in the first half of 2022, so that the gross profit margin of the company's products was repaired. The gross profit margin of the company's main products in the third quarter was 22.25%, which was higher than that in the second quarter (4pct), and the net profit in the third quarter increased by 343.18% and 8.11%. The company extends steadily from preparations to upstream raw materials, and the gradual release of raw materials is expected to fully guarantee product quality and supply, and the ability to control costs is expected to be improved, which is conducive to the improvement of product gross profit margin and profitability.
R & D-sales-technical service integration brings the company's long-term business growth: the company creates a multi-level R & D platform, there are four major R & D platforms, with strong R & D strength, so that the company continues to launch new products. The company has established a marketing network with the combination of group customer direct sales and dealer channel sales, pertinently covering farms of different sizes, strong technical service capacity to enhance customer stickiness, and pig prices are expected to continue to improve. The company's performance is expected to continue to grow next year.
Risk hint: the decline in pig prices leads to losses for downstream customers, and the release of production capacity is not as expected.