Event: The company released its 2023 annual report&2024 quarterly report. In 2023, it will achieve a revenue of 1.199 billion yuan,+3.07% year-on-year, a record high, with a net profit attributable to the parent company of 81 million yuan,+15.56% year-on-year; The Q4 revenue was 319 million yuan, -4.34% YoY, and the net profit attributable to the parent company was 25 million yuan,+62.41% YoY. In 2024Q1, the revenue was 287 million yuan,+23.32% year on year, and the net profit attributable to the parent company was 13 million yuan,+20.45% year on year.
The company is mainly engaged in the R&D, production and sales of enzyme preparations, microecological preparations and animal health products. In 23 years, the revenue of enzyme preparation, microecology and animal health products was 441 million yuan, 237 million yuan and 297 million yuan respectively, and the gross profit was 268 million yuan, 98 million yuan and 124 million yuan respectively. Among them, the revenue and gross profit of enzyme products are the highest in history. The outstanding performance of enzyme products is mainly due to the upgrading of the company's enzyme technology and the rising market demand.
In terms of technological innovation, the company's total R&D investment in 2023 is 111 million yuan,+8.09% year on year, accounting for 9.23% of the revenue, which is the leading position in the industry. The company has always attached great importance to the research and development of enzyme preparations, and has made a breakthrough in core technology.
Through new gene screening technology, protein expression system transformation technology, protein engineering technology and other core technologies, the company continues to optimize enzyme products, develop efficient enzyme products and reduce costs. In 23 years, the operating cost of enzyme preparation was -13.23% year on year, and the gross profit rate was 60.80%,+15.36% year on year. The joint laboratory research and development project between the company and the world's top 500 ADM company has made substantial progress, and the focus of laboratory work has moved from joint research to product development. Through patent licensing and strain transfer, the company has realized the transformation from technology input to technology output of many domestic and foreign companies, forming a platform advantage based on enzyme preparations.
In terms of market space, in recent years, due to the price fluctuation of feed raw materials, the development of feed raw material alternative products has gradually developed into rigid demand. In particular, the development of new feed materials to replace soybean protein, fermented protein materials and protein materials from microbial sources has become a crucial link in the development of enzymes. At present, the import of feed enzyme preparations has been replaced, the international market share is also increasing, and the company's advantages in the field of feed enzyme continue to deepen. At the same time, there is a large import substitution market for industrial enzymes, and the market space is broad. In the future, the company will continue to strengthen its expansion in industries, food, energy, biocatalysis and other fields to usher in new growth in performance.
In the field of micro ecological business, Evonik Ulan Biotechnology (Shandong) Co., Ltd., a joint venture between the company's wholly-owned subsidiary Shandong Ulan Biotechnology Co., Ltd. and Evonik (China) Investment Co., Ltd., was officially put into operation in January 2024. This cooperation will help the company strengthen the expansion and development of international business, and improve the company's market competitiveness, brand influence and profitability.
In the field of animal health care products, the company is a national recognized enterprise technology center and the only national engineering technology research center for animal health care products in the animal health care industry. Its research and development strength ranks in the forefront of the animal health care industry. In August 2023, the company acquired 51% of the equity of RBT. Runbotte has a rich background in the substitution of antibiotics. It complements the company's enzymes, probiotics, and Chinese herbal medicine properly to effectively improve the blue biological animal health system.
Investment suggestion: considering the fluctuation of the downstream aquaculture industry of the company, based on the principle of prudence, we adjust the profit forecast. It is estimated that the company's operating income in 24-26 years will be 1.273/1399/1.558 billion yuan respectively (the previous value of 24-25 years will be 1.419/1.582 billion yuan respectively), and the net profit attributable to the parent company will be 100/118/138 million yuan respectively (the previous value of 24-25 years will be 14.3/160 million yuan respectively), The current share price corresponds to a PE of 51.4/43.6/37.2 times. Maintain the "buy" rating.
Risk warning: R&D achievements are not as expected; The market promotion is not as expected; Downstream aquaculture industry cycle and sudden disease risk; Price fluctuation risk of raw materials; The public data used in the research report may have the risk of delayed information or untimely update.
