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article | Wang Mingqi
The company disclosed its 2022 semi-annual report. In 2022H1, it achieved revenue of 533 million yuan, a year-on-year decrease of 3.01%, and net profit attributable to the parent company The profit was 37.4059 million yuan, a year-on-year decrease of 39.02%; the revenue in 2022Q2 was 277 million yuan, a year-on-year decrease of 2.23%, a month-on-month increase of 8.08%, and the net profit attributable to the parent company was 24.4025 million yuan, a year-on-year decrease of 40.22%, a month-on-month increase of 34.94%.
1. The sluggish breeding industry dragged down business in the first half of the year, but profits recovered in Q2.
① The company achieved revenue of 533 million yuan in 2022H1 (-3.01% year-on-year), of which enzyme preparation achieved revenue of 189 million yuan (-5.32% year-on-year) ), revenue from microecological preparations was RMB 115 million (-5.37% year-on-year), and other products were RMB 63.6922 million (+65.77% year-on-year); net profit attributable to the parent company was RMB 37.4059 million (-39.02% year-on-year).
2022Q2 achieved revenue of 277 million yuan (-2.23% year-on-year, +8.08% month-on-month), of which enzyme preparations achieved revenue of 95.1991 million yuan (-1.88% year-on-year, month-on-month +1.76%), and revenue from microecological preparations was 6375.4 30,000 yuan (-4.23% year-on-year, +25.29% month-on-month), other products 35.7603 million yuan (+63.45% year-on-year, +28.03% month-on-month); net profit attributable to the parent company was 24.4025 million yuan (-40.22% year-on-year, +34.94% month-on-month) ).
② In terms of profit margin, the company's gross sales profit margin in 2022H1 was 43.19% (-3.21pcts year-on-year), and the net sales profit margin was 7.98% (-4.51pcts year-on-year); 20 The gross profit margin of sales in 22Q2 was 43.61% (-3.01pcts year-on-year, +0.87pcts month-on-month), and the net sales profit margin was 8.18% (-4.10pcts year-on-year, +0.43pcts month-on-month). In terms of
③ expenses, the company’s sales expenses in 2022H1 were 81.7189 million yuan (-8.31% year-on-year); management expenses were 56.2677 million yuan (+13% year-on-year) .78%); financial expenses were 919,700 yuan (-45.38% year-on-year), mainly due to the increase in exchange income in the current period; research and development expenses were 49.9918 million yuan (+7.07% year-on-year).
2. R&D investment continues to increase, and animal protection innovation results are evident.
company invested 49.9918 million yuan in R&D in 2022H1 (+7.07% year-on-year), accounting for 9.39% of revenue. In the first half of the year, the company added 25 domestic authorized invention patents, 1 US patent, and 4 PCT international applications; chicken Newcastle disease , avian influenza (H9 subtype) dual inactivated vaccine (La Sota strain + WD strain), etc. 4 A veterinary drug obtained a veterinary drug product approval number. The company's new animal health base in the High-tech Zone has passed the GMP acceptance. After being put into production, the company's product structure will be further optimized, the stability, safety and effectiveness of animal health products will be improved, production costs will be reduced, and the production process and product upgrades of animal health products will be promoted. The company's research and development and reserve products such as the triple inactivated pig ring-parasuis-streptococcus vaccine (new veterinary drug registration stage) and the pig blue ear-ring-mycoplasma triple inactivated vaccine (clinical trial stage) have broad market prospects. The company is actively developing pet animal health products and has formulated a long-term product planning plan. At the same time, it will gradually build a research and development and market operation team to carry out channel construction.
3. Lay out the food field and use technological advantages to open up new tracks. Based on its technical accumulation in the field of enzyme preparations,
company cooperates with international companies to develop the food market. In March 2021, the company signed an agreement with ADM, a Fortune 500 company, on highland barley project cooperation to carry out joint cooperation in production technology and application development to realize the development of the entire industry chain of highland barley in the food and beverage fields; on May 5, 2022, Subsidiaries and ADM established Aidimeng Weilan Biotechnology (Shandong) Co., Ltd., with each party holding 50% of the shares. It mainly produces and sells food probiotic products. The sales model is B2B (including B2B2C). The products are promoted to the global market and can be promoted in the future. Expect.In addition, the company signed a strategic cooperation agreement with Simai Food to conduct technical and commercial cooperation in the direction of enzymatic cereal foods and probiotic foods, and promote the research and development and innovation of oat foods through biotechnology.
4. Expand innovative applications of unconventional raw materials, reduce resistance and replace resistance to support green breeding.
The company continues to research unconventional raw materials to help replace feed raw materials. The company's VLAND-PCP customized enzyme solution (accurate customization based on feed enzyme application big data system) platform has accumulated hundreds of enzyme databases for feed raw materials and is continuously updated, which can effectively solve the digestion, absorption and processing problems of unconventional raw materials. Improve feed conversion efficiency, enhance the growth performance of livestock and poultry, and provide system solutions for users to reduce costs and increase efficiency. The recognition of the platform's major customers continues to increase. At the same time, the company's enzyme preparations help the development and application of new unconventional raw materials.
In the direction of animal microecology, the company has researched and developed a series of related functional bacteria for the purpose of replacing antibiotics and improving feed efficiency in feed mills, developing pollution-free breeding models for livestock and poultry and aquaculture farms, and developing environmentally friendly treatment for breeding waste treatment. agent products, etc., providing effective solutions for green farming. The company's antibiotic products include the "iron triangle of antibiotics" on the feed side, including enzymes, probiotics, and plant extracts; on the breeding side, the four-in-one, vaccine blessing makes antibiotic substitution more systematic. The company not only conducts R&D and innovation on the product , but also provides comprehensive services in terms of feed quality control, in vivo and in vitro digestive tract models, feed raw material databases, animal disease and drug residue monitoring at the breeding end, etc., which are combined with products to highlight its advantages.
5, profit forecast and rating: company's short-term performance is trapped by the downturn or decline in the breeding industry; with the subsequent recovery of downstream prosperity, the company continues to make efforts in the fields of enzyme preparations and microecological preparations, and is expected to resume business in 2023/2024. Pick up is growing rapidly.
The risks of epidemics in the breeding industry, risks of product development not being as good as expected, risks of intensifying market competition, risks of cyclical sales fluctuations, etc.
Wang Mingqi: CITIC Securities Chief analyst of the agriculture, forestry, animal husbandry and fishery pet consumption industry, Master of from Shanghai Jiao Tong University, with in-depth coverage of subdivisions such as breeding, animal health, seed industry, feed and pet industry chain; 2021 Joined the Research and Development Department of CITIC Securities and previously worked at Founder Securities Research Institute. As a core member, he was shortlisted for the 2020 Sell-side Analyst Crystal Ball Award for Public Offerings.
Securities research report name: " Azure Bio (603739): The animal protection sector continues to upgrade and actively expands the food track and the application of unconventional raw materials"
External release time: August 23, 2022
Report publishing organization: CITIC Construction Investment Securities Co., Ltd.
Analyst for this report:
Wang Mingqi SAC License number: S1440521100007
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