Event: the company released its semi-annual report in 2023, the company's 2023H1 achieved a total operating income of 685 million yuan, yoy6.68%, achieved a net profit of 134 million yuan, yoy28.09%.
The operation is sound and good, and the growth is of high quality. In the first half of 23 years, the aquaculture industry as a whole showed a situation of increasing volume and decreasing profits, and the aquaculture end operation was facing greater pressure, but the overall immune demand rebounded. The company deepens the coordination of research, production and marketing, stabilizes and increases the market share of products, and achieves a revenue growth of 6.68%. Benefiting from the continuous improvement in the production efficiency of core products, the company's operating costs fell, driving the company's sales gross profit margin up 6.01 percentage points compared with the same period last year. The company's 23H1 realized a net cash flow of 141 million yuan from operating activities, an increase of 251.59% over the same period last year.
The company operates steadily, the effect of practicing internal skills to expand the market during the trough period is gradually reflected, and the profitability and quality of the company are gradually improved.
R & D innovation is the core drive, and the construction of independent R & D system continues to move forward. 23H1 invested 85.1109 million yuan in R & D, accounting for 12.43% of the operating income. In terms of products, during the reporting period, the company obtained 3 clinical trial approvals, 1 product approval number, 2 notice of registration change of the Ministry of Agriculture and Village, and submitted 3 emergency evaluation of veterinary biological products. In terms of platform construction, during the reporting period, the company cooperated with Academician Chen of the Chinese Academy of Sciences to build the Beijing Joint Innovation Laboratory, focusing on building a new iterative vaccine technology platform. In terms of pet vaccine, the company's cat triple vaccine has submitted emergency evaluation, and dog quadruple has entered the stage of new veterinary drug registration.
The company firmly takes R & D and innovation as the core-driven development direction, and continues to invest in the construction of a new platform, and the continuous landing of new products is expected to bring a steady stream of development power for the company.
Non-plague vaccines are progressing smoothly, and commercial landing is expected to contribute to new growth. The company established an integrated research and development platform for African classical swine fever vaccine based on P3 laboratory, and carried out research on several technical routes at the same time, among which the subunit vaccine route in cooperation with the Chinese Academy of Sciences has formally submitted emergency evaluation materials to the Ministry of Agriculture and villages. In terms of safety and effectiveness, it is verified by multi-rotation animal experiments that it meets the requirements of emergency evaluation of African classical swine fever vaccine in agriculture and villages. Non-plague vaccine as a breakthrough in the industry, the market space is considerable, if the company's products successfully commercial landing is expected to contribute to significant growth.
Company profit forecast and investment rating: we are optimistic about the development potential of the company, including new products such as non-plague and non-mouth products, the driving force of the company's organizational innovation, and the expectation that the company's profitability will gradually improve with the downstream breeding cycle. It is estimated that the 23-25 net profit of the company will be 3.24,4.06 and 520 million yuan respectively, corresponding to EPS 0.29,0.36 and 0.46 yuan respectively, and corresponding PE value to 32,26 and 20 times respectively, maintaining the "highly recommended" rating.
Risk tips: the recovery of industry demand is not as expected, the risk of animal disease, and so on.