Praco (603566): Poultry seedlings, high growth of chemical drugs actively participate in the development of non-blast vaccines

1. The event company released its semi-annual report for 2019.

2. Our analysis and judgments 1) Benefiting poultry seedlings, high growth of chemical drugs, interim report performance slightly exceeded expectations 2019H1, the company achieved operating income3.

2 ‰, +12 per year.

02%, of which, poultry vaccines and antibodies, chemical drugs, swine vaccines, technology licensing or transfer respectively contribute revenue.

4.4 billion, 1.

0.5 billion, 0.

5.4 billion, 0.

120,000 yuan, +38 a year.

76%, +30.

47%, -40.

11%, +43.


The company’s net profit attributable to the parent is 0.

650,000 yuan, at least -14.

86%; net profit after deduction is 0.

450,000 yuan, at least -20.


The company’s consolidated gross profit margin was 64.

82% every year -3.

17 points.

The company’s period expense accounted for 45.

5%, +3 per night.

97pct, mainly due to the increase in the company’s external technical cooperation costs caused by increased research and development costs.

In Q2 2019, the company achieved revenue 1.

72 ppm, +21 a year.

77%; net profit attributable to mother 0.

51 ppm, +33 for ten years.

72%; net profit after deduction is 0.

41 trillion, +54 for ten years.


Taken together, the company’s first-half performance benefited from poultry seedlings and high growth in chemical drugs. Q1 suffered a significant increase in external research and development cooperation costs, leading to a decline in performance, and Q2 performed better than expected.

2) Excellent performance of poultry seedling business, actively deploying heavy products. The 19H1 company’s poultry seedling business grew at an excellent rate (+ 39%), mainly benefiting from the increase in the volume and price of downstream meat and poultry, and the positive use of farmer’s seedlings, which is good for the performance of poultry seedlings;The company continues to promote the “434” series of epidemic programs, the new one-day immunization and other scientific burden reduction programs, which will create value for customers and significantly improve the company’s performance.

In the field of poultry seedlings, the company actively cooperates with 深圳spa会所 external research and development institutions to start the development of avian influenza (H5 + H7 subtype) vaccines and plans to enter the field of poultry seedling recruitment.

In addition, chicken new (genotype) -branch-flow-method quadruple genetically engineered inactivated vaccine and other two products passed the preliminary examination of new veterinary drug registration; chicken new-flow (H9 subtype) gland (group I, type 4) tripleThree products including inactivated vaccines have obtained clinical trial approvals, and the company has a rich new product reserve, and future performance growth can be expected.

3) Downstream production of down-sold piglets has declined. Active participation in African swine fever vaccine research. Affected by African swine fever, downstream swine production has continued to decline, and vaccines for swine use have been hindered by consumer products, with 19H1 exceeding -40%.

The company’s new pseudorabies genetically engineered inactivated vaccines and round-branched two-unit vaccines are on sale. Swine foot-and-mouth disease OA divalent inactivated vaccines are at the application stage for production approval and are expected to be listed in 19H2.

We believe that the company has abundant reserves of large pig seed products, and through the subsequent recovery of downstream production capacity, the company has a potential breakthrough.

In addition, the company actively participates in the research and development of African swine fever vaccine. First, it has developed an African swine fever antibody antibody immunoassay kit, which has a typical double-gene indeed attenuated live attenuated vaccine for immune effect evaluation and quality standard research. The second is around the African swine fever subunit.The research and development of vaccines, series of live vector genetically engineered vaccines, has successfully constructed dozens of African swine fever virus structural proteins and transformed antibodies targeting these proteins.The company has its own strong R & D system, participates in the development of African swine fever vaccine in many aspects, and is optimistic about the company’s future development.


The investment proposal benefited from the improvement of the downstream meat and poultry boom, and the company’s poultry performance was excellent. Considering the future rise in meat and poultry prices, the company is optimistic about the high growth and sustainability of the company’s poultry performance. In addition, the company actively participates in the research and development of African swine fever vaccine for future developmentExpected.
We expect the company’s EPS for 2019-2021 to be 0.



74 yuan, corresponding to PE is 32/27/24 times, given a “recommended” rating.


Risks indicate the risk of animal epidemics, the risk of fluctuations in pig prices, the risk of quality, and the risk of market competition.