China Animal Husbandry (600195): The performance is slightly included in the opportunity to focus on the vaccine industry!

Event: On August 21, 2019, the company announced the semi-annual report for 2019: the first half of 2019 achieved operating income18.

35 ppm, 10-year average3.

21%; net profit attributable to shareholders of listed companies1.

62 ppm, a 15-year average of 15.


Our analysis and judgment: 1.

Poultry seedlings grow at a high rate, and piglets are under pressure from downstream stocking.

According to the company’s semi-annual report, the net profit in the first half of the year was slightly replaced: 1) Veterinary medicine: According to the semi-annual report, veterinary medicine income was 3.

64 ppm, with a ten-year average of 15.

4%, gross margin 32.

6%, twice a year.

3pct; In the first half of 2019, the company ‘s main wholly-owned and holding subsidiaries related to veterinary medicine, Zhongmu Anda, Inner Mongolia Zhongmu Biopharmaceuticals, Southern Medicine and Shengli Bio, contributed a total of 2034 attributable net profit.

380,000 yuan, a year-on-year decrease of about 50%, mainly affected by industry regulatory policies. Quinoethanol products were discontinued in May 2018, and were discontinued in May 2019, resulting in the company’s remaining half-year chemical drug business income and reduced profits; 2) InvestmentEarnings: According to the company’s semi-annual report, Jindawei’s investment income has decreased by more than 2158.

30,000 yuan; 3) Feed: According to the semi-annual report, the report realized continuous income4.

28 ppm, a decrease of 12 per year.

5%, gross margin of 21.

4%, an increase of 5 per year.

1 point; the number of reports, while maintaining the competitive advantage of laying hen feed, the company develops and promotes other poultry feeds, expands the poultry premix market, and actively develops out-of-feed specialty products, increases marketing construction, and achieves premix sales with significant revenueGrowth; 4) Vaccines: According to the company’s semi-annual report, revenue from biological products5.

29 ppm, a decrease of 0 per year.

9%, gross profit margin is 55%, a year down 1.

5pct; of which: ① Qian Yuanhao (mainly a poultry seedling product) realized net profit attributable to listed companies of 7.61 million yuan, an increase of 55.

48%; ②Swine vaccine products such as foot-and-mouth disease: affected by African swine fever, sluggish downstream pig production capacity, the company’s main foot-and-mouth disease subsidiary, Lanzhou Zhongmu, Zhongpu Biological reported maximizing net profit and reducing negative numbers; 5) Trade: report realization, operating income5.

06 ‰, 19% growth in ten years; gross profit margin 3.

4%, rising by 0 every year.

7 points.


A strong alliance will further strengthen competition in the foot-and-mouth disease market.

According to the company’s announcement, Praco provided Zhongpu Biotech with the necessary technical support and assistance in the product development and technological upgrading of veterinary biological products, including but not extending one of the future series of recombinant foot-and-mouth disease genetic engineering vaccine products that can be replaced.The production right is given priority and transferred to Zhongpu Biological for free; the company cooperates with Praco to establish Zhongpu Biological, introduces Praco’s advanced technology, forms complementarities in products, channels, etc., and promotes the improvement of existing 四川耍耍网 foot-and-mouth disease products through technology.Product market competitiveness.

At present, the company’s technical innovation of foot-and-mouth disease vaccine is completed. Through in-depth cooperation with Placo, foot-and-mouth disease vaccine is expected to be further upgraded. The company is expected to continue to expand the market share of foot-and-mouth disease vaccine!

3 Deepen the reform of the system and further improve the effective management progress.

According to the company’s announcement, the company’s general manager and deputy general manager realized market-oriented recruitment, the implementation of professional manager system and market-oriented recruitment promoted the improvement of company management efficiency, and the first phase of equity incentive plan was successfully implemented, 北京保健按摩 covering company directors and senior managers, Middle-level technical personnel and core technical (business) backbones, exercise conditions are linked to conditions such as net profit growth rate, return on net assets, industry level and other conditions, resulting in a wide range of equity distribution plans, the interests of stakeholders, core technical personnel andThe company’s development is bound to improve the company’s operating efficiency and form a joint force to promote the company’s performance growth.

Investment suggestion: The company is expected to achieve net profit attributable to the parent company in 2019-2021.



92 ppm, corresponding EPS is 0.



7 yuan.We give “Overweight-A” rating with 16-month target price of 16.

5 yuan.

Risk warning: New products are not listed as expected; market promotion is not up to expectations, and foot-and-mouth disease vaccine progress is not up to expectations.