Placco (603566) Commentary Report: Poultry vaccines will be researched and promoted in next city
On October 31, the company announced that it had successfully acquired a 50% equity interest in Nanjing Melia held by Qian Yuanhao, and intended to transfer 50% equity of Nanjing Melia obtained by China Marine Bio from the French Melia office. The company will hold 100% of Nanjing MeliaEquity, also known as “Plaike (Nanjing) Biotechnology Co., Ltd.”.
Operational analysis In the context of the high prosperity of the poultry industry, the company will cut into the largest bird flu product avian influenza (H5 + H7) vaccine market; the Nanjing Merial company acquired by the company owns highly pathogenic avian influenza (H5 + H7) vaccine productsThe production qualification will cooperate with the company’s rich product structure. The highly pathogenic 北京体验网 avian influenza (H5 + H7) vaccine is the largest single category in the market. In 2019, the government will exempt the highly pathogenic avian influenza bivalent inactivated vaccine.Changed to a trivalent inactivated vaccine. According to the bidding purchase price this year, the increase in the price range of the new vaccine will also lead to the expansion and expansion of the bird flu vaccine market. Under the current high boom cycle of the poultry industry, the poultry marketWith the rise in volume and price, the company will fully benefit.
High R & D investment creates multi-product transformation. The company will be committed to the upgrading of highly pathogenic avian influenza (H5 + H7) vaccines from whole virus vaccines to genetically engineered vaccines. The company is one of the few companies with independent research and development capabilities in the veterinary medicine industry.In the first half of 2019, the company’s R & D promotion accounted for Dada.
21%, ranking first in the industry; Currently, according to the National Veterinary Medicine Basic Database, a total of 11 manufacturers of avian trivalent vaccines have initiated inactivated vaccines. The company will use its next-generation genetically engineered vaccine technology to upgrade bird flu vaccines toGenetically engineered vaccines give full play to their technological advantages and maintain their leading position in the poultry market vaccine direction.
Possessing the largest single breed vaccine in the market for livestock and poultry vaccines, and realizing the layout of the entire industry chain; the single species with the largest scale in the poultry vaccine market is highly pathogenic avian influenza (H5 + H7) vaccine, and the single species in the largest market for poultry vaccinesFoot-and-mouth disease vaccine has been accumulated by the company in the past two years. It has initially captured two major species in the industry. The pig pseudorabies gE gene deletion inactivated vaccine is still to be marketed. At the same time, the company’s advanced genetic engineering vaccine research and development technology platform fully supports the research and development of non-pest vaccineIt is expected to further expand the wide product matrix through its R & D platform in the future.
Investment suggestion: The company has high R & D investment + multi-product layout, and continues to be optimistic about the company’s future R & D achievements. Without counting the replacement of currently unlisted products, the company will be given 0 EPS in 2019-2021.
61 yuan / share, corresponding to a PE of 53/44/39 times. Maintain “Buy” rating.
Risks suggest fluctuations in the downstream breeding industry, risks of epidemics, risks of new product sales falling short of expectations, and increased market competition, risks of changes in government bidding and procurement policies, merger and acquisition integration risks, and brain drain risks.