Biologics (600201) semi-annual report comment: the first half of the year affected by the impact of non-pestic diseases is expected to gradually improve in the second half

Biologics (600201) semi-annual report comment: the first half of the year affected by the impact of non-pestic diseases is expected to gradually improve in the second half

Event: The company released its semi-annual report for 2019, reporting a series of realized operating income5.

11 trillion, down 32 a year.

85%; net profit attributable to mother 1.

70 ppm, a decrease of 52 per year.

67%.

The impact of the non-epidemic situation continued, and the company’s performance was therefore under pressure in 北京夜生活网 the first half of 2019. Due to the normalization of the African swine fever epidemic, the domestic live pig population declined, which directly affected the demand for swine vaccines, and the company’s performance was under pressure.

Although the company adjusted its production and marketing structure according to market changes and increased sales in areas such as poultry vaccines and anti-tracer vaccines, it still cannot replace the impact of pig vaccine replacement in the short term.

Judging from the performance of major subsidiaries, Jinyu Baoling, which mainly sells foot-and-mouth disease vaccines, achieved revenue 3 in the first half.

52 ‰, 40 years ago.

03%; Yangzhou Youbang, which mainly sells circular vaccines, achieved zero revenue.

4.5 billion, previously 42 per second.

31%; Liaoning Yikang, which mainly sells bird flu vaccine, achieved zero revenue.

91 ppm, an increase of 21 in ten years.

33%.

In the first half of the year, Jinyu Biotechnology Industrial Park’s first phase of the project progressed smoothly. All workshops are expected to complete the GMP dynamic acceptance in the second half of the year, and they can all be put into operation before the end of the year.

Intelligent manufacturing in the new park realizes that the entire life cycle of vaccine manufacturing is completed under the most preferred process parameters, which will further enhance the company’s core competitiveness.

In addition, the company has continuously improved its independent research and development capabilities, and carried out technological innovations in the research and development of pet multi-linked multivalent vaccines, pharmaceuticals and diagnostic reagents.

The number of reports, the company obtained 3 patent authorizations, applied for 2 invention patents, obtained the production number of respiratory syndrome virus vaccine (PC strain), Seneca virus inactivated vaccine, porcine infectious gastroenteritis, swine epidemicR & D projects such as live diarrhea dual vaccine and canine triple vaccine are progressing smoothly.

Downstream structured supplementation is expected to drive performance improvement, and commercialization of non-disease vaccines may benefit in the future. Although the reduction of production capacity in the downstream pig breeding industry will have a certain impact on the company’s short-term performance, awareness of biosafety and the trend of large-scale farming will not change.As the casual large-scale pig farms supplemented the pen in the future, the company’s pig vaccine business sought to improve.

In addition, the company gradually increased common products such as pigs, poultry, ruminants, pets and other vaccines and diagnostic reagents, and gradually formed the ability to provide a comprehensive disease prevention and control solution to breeding companies. The continuous listing of new products is expected to continue to contribute to the company in the future.Performance.

Therefore, the current research on domestic pest free vaccines has made progress. If it is successfully commercialized in the future, the company, as a leading company in the industry, has undertaken major national epidemic prevention tasks, which will be beneficial.

Profit forecast and investment recommendations Due to the continuing impact of the epidemic, we have adjusted the company’s performance, and it is expected that the company will return to its parent’s net profit in 19/20/216.

03/8.

08/10.

0.6 billion (previous value was 7.

87/9.

34/11.

29 ppm) and EPS is 0.

54/0.

72/0.

89 yuan, corresponding PE is 32/24/19 times, continue to give a “buy” rating.

Risk warning: epidemic risk; market competition risk; industry policy risk