China Animal Husbandry Co., Ltd. (600195): Cycles boost growth after results meet expectations

Home / China Animal Husbandry Co., Ltd. (600195): Cycles boost growth after results meet expectations

China Animal Husbandry Co., Ltd. (600195): Cycles boost growth after results meet expectations

In the first three quarters of 2019, excluding Jindawei’s net profit decreased by about 20% every six months, in line with market expectations. The company announced the third quarter report of 2019. The report may report that the company achieved revenue of 29.

550,000 yuan, a year-on-year increase of 7.

47%, net profit attributable to shareholders of listed companies.

7.2 billion, -19 years old.

58%, excluding the impact of Jin Dawei (1.

10 billion investment income), the company’s performance increased by 21.

83%.

In 19Q3, the company achieved revenue 11.

190,000 yuan, 13.

69%, net profit attributable to shareholders of listed companies1.

10ppm, yoyo-24.

78%.

The company’s performance is in line with market expectations.

We expect that the company 2019?
The 21-year EPS is 0.

50 yuan, 0.

53 yuan, 0.

56 yuan, maintain “Buy” rating.

The boom in poultry vaccine continues, and the growth of FMD market seedlings has benefited from the continued high prosperity of the poultry industry chain. The company’s poultry seedlings continued to grow at the first half of the first three quarters. Grassroots understand that the growth rate of poultry seedlings has increased by 40% +.

In terms of piglets, due to the impact of the African swine fever epidemic, the domestic pig breeding volume has deviated from the deviation range, and the company’s piglet business has been affected by this, causing a certain degree of deviation.

Grassroots understands that for every 10% of FMD vaccine seed income in the first three quarters, the FMD market seedling income grows by nearly 10%, and 3) Non-FMD pig income increases by about 30%.

In addition, in the first three quarters, the company’s sales expenses were basically stable, one per quarter.

30%, the financial expenses are affected by the initial debt repayment, and the extension has been reduced several times, each time falling by 81.

84%.

The boom of the poultry chain continues, and the fry is expected to improve marginally. The breeding boom will increase the amount of yellow chicken slaughter; plus poultry, eggs will have a certain substitute for pork protein consumption in the future; the expected intensity of poultry breeding will be expanded, and the prosperity will be maintained in the next year.

In terms of pig breeding, the current pig inventory is at a historically low level. We believe that there is not much room for hog throughput to continue to be arranged, the frequency of outbreaks caused by the decline in conversion breeding density is reduced, and some of the farms will be supplemented by high profitability in the future.Promote the marginal improvement of hog production capacity.

In addition, on August 30, the company obtained the export production license for domestic and foreign resettlement of FMD O, A, and Asia Ⅰ trivalent inactivated vaccines for agricultural products, positioning the export, and targeting Pakistan along the “Belt and Road”.country.

With high R & D investment, the product is rich and enters the pet blue ocean to add vitality. For a long time, the company has maintained its leading position in the veterinary biological products industry by increasing research and development efforts.

In the first three quarters of 2019, the company’s R & D expenses increased by 22.

64%, obtained foot and mouth disease type O, type A bivalent 3B protein epitope deletion inactivated vaccine (O / rV-1 strain + A / rV-2 strain), providing product conditions for purification work in specific disease-free areas.

In the first three quarters, management expenses increased by about 2,000 million. We believe that it was mainly due to the accrual of technology use fees.

In addition, the company and Jiangsu Crazy Dog Breed “Strategic Cooperation Framework Agreement”, through cooperation, can effectively integrate the advantages of China Animal Husbandry product development, funding and Crazy Dog Pet services, channel operations, and help 杭州桑拿 the company expand pet vaccine and nutrition businessTo cultivate new points of profit growth.

Market-oriented reforms are advancing steadily. Maintaining a “Buy” rating. Considering the depopulation of pig production caused by the African swine fever epidemic, we predict that the company’s net profit attributable to mothers in 2019-21 will be 4.

2 billion, 4.

44 trillion, and 4.

74 trillion, corresponding to EPS are 0.

50 yuan, 0.

53 yuan, and 0.
56 yuan, with reference to 30 times the PE level of comparable companies in 2020, comprehensively considering the company’s operating mechanism, improved incentives, and rich product reserves. We give the company 35-40 times PE in 2020 with a target price of 18.
55-21.

20 yuan, maintain “Buy” rating.

Risk Warning: The swine fever epidemic in Africa continues to 杭州桑拿网 spread, and the pet vaccine business is developing less than expected.

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