China Animal Husbandry (600195): New Drug Approved, Old Drug Reinstated, Optimistic about Company Growth

China Animal Husbandry (600195): New Drug Approved, Old Drug Reinstated, Optimistic about Company Growth

On August 30th, the company issued the “Announcement on Obtaining a New Veterinary Drug Registration Certificate” and the “Announcement on Obtaining Approval for the Production of Foot-and-Mouth Disease Type O, Type A, and Asia Type I Trivalent Inactivated Vaccine for Export.”

Our analysis and judgment of FMD O and A new bivalent products were approved, and the competition strengthened the review and approval of the Ministry of Agriculture and Rural Affairs. The company and Lanzhou Veterinary Research Institute, Zhongnong Weite, and BV Antai jointly declared the FMD O, A bivalent 3B.The protein epitope-deficient inactivated vaccine (O / rV-1 strain + A / rV-2 strain) is a new class II veterinary drug.

Foot-and-mouth disease type O, type A bivalent 3B protein epitope-deleted inactivated vaccine (O / rV-1 strain + A / rV-2 strain) can simultaneously prevent type O and type A foot and mouth disease of pigs and cattle; the product is 3BProtein epitope-deficient vaccines, combined with corresponding detection methods, can distinguish natural infections and vaccine immunizations, and provide product conditions for purification work in specific disease-free areas.

In the end, the company’s R & D expenses incurred for this product were 48.44 million yuan. After the new product is launched, it will further enrich the company’s veterinary vaccine product structure and improve the company’s performance and competitiveness.

Foot-and-mouth disease O, A, and Asian type I trivalent seedlings resume production and export revenue-increasing capacity has been enhanced. As of July 1, 2018, according to the relevant policies of the Ministry of Agriculture, the immunization of Asian type I foot-and-mouth disease has been gradually stopped nationwide, and production and sales are richVaccine of the Asian Foot and Mouth Disease Virus component.

In recent years, countries around the country and countries along the “Belt and Road” have been predominantly infected with O-type, A-type and Asian type I serotypes of foot-and-mouth disease.

Among them, the foot-and-mouth disease outbreak in Pakistan has been severe, and pressure on epidemic prevention in Central Asian countries such as Kazakhstan and Uzbekistan has also been hindered.

The company has always recognized the development of the overseas vaccine market. From 2018 to 2019, the company’s foot-and-mouth disease vaccine export revenue has been 60 million and 15 million yuan, respectively.

Recently obtained the approval of the Animal Husbandry and Veterinary Bureau of the Ministry of Agriculture and Rural Affairs, the restoration of FMD O, A, and Asia I trivalent inactivated vaccines produced in Lanzhou factory and for export is dedicated to further improve the company’s overseas market layout and promote the company’s export revenue.

In the first half of the year, the sales of animal health insurance declined, and in the second half of the year, the volume and price are expected to rise. In the first half of 2019, the boom of the poultry chain has improved and overlapping strains have been replaced. The company’s poultry vaccine sales have performed well.

Affected by the African 苏州夜网论坛 swine fever epidemic, the number of pigs in stock has been shortened, and sales of livestock vaccines have improved.

In the first half of the year, the company’s biological products segment achieved revenue5.

29ppm, an annual increase of -0.

87%.

The chemical medicine sector was affected by the suspension of ethanol production and the weakening demand for swine chemical medicines, and it achieved revenue in 2019H13.

64 ppm, a -15-year increase.

36%.

Looking ahead, the price of hogs will rise, and the continued prosperity of the poultry chain will increase vaccine consumption and demand for high-priced seedlings.

The company’s new product research and development continued to advance, and product competitiveness continued to increase. In the second half of the year, the sales volume of dynamic insurance products rose in both volume and price.

Investment suggestion: We expect the company’s operating income for 2018 to 2019 to be 44.

9 billion, 46.

48 ppm, with annual growth rates of 1.

27% and 3.

51%; net profit attributable to mothers is 3.

830,000 yuan (among which, Jin Dawei contributed investment income of about 1.

600 million) and 4.

RMB 88,000 (among which, Jin Dawei contributed investment income of about 1 yuan.

700 million), the previous growth rates were -7.

83% and 6.

41%, corresponding to 336.

6x and 34.

3 times.

Maintain “Buy” rating.

Risk reminders: policy risks such as vaccine procurement; risks of intensified market competition.