Biological Stock (600201): Intelligent Foot-and-Mouth Disease Vaccine Production Line Receives Certification

Event: The company recently received the Veterinary Drug Production License and the Veterinary Drug GMP Certificate issued by the Agriculture and Animal Husbandry Department of the Inner Mongolia Autonomous Region. The certificate supplemented the certification program for the suspension of inactivated vaccine against foot-and-mouth disease cells in the first phase of the Jinyu Biotechnology Industrial Park ProjectProduction line, designed annual production capacity 7.

500 million servings.

Take the lead in completing the third level of biosafety requirements, and then upgrade the foot-and-mouth disease vaccine.

The GMP certification this time is a suspension culture inactivation production line for foot-and-mouth disease cells located in Jinyu Intelligent Park.

The certification indicates that the company’s foot-and-mouth disease vaccine production line has taken the lead in meeting the three-level biosafety protection requirements required by the Ministry of Agriculture and Rural Affairs.The new production line was put into operation to fully and 淡水桑拿网 effectively increase the total production capacity and unit output, and to improve product quality and efficiency through intelligent management throughout the process.

We judge that the company’s fist products, foot-and-mouth disease market seedlings, can be effectively promoted by new production capacity, and continue to maintain its competitive advantage and market share.

The intelligent park has made a smooth transition, and the advantages of the production and research platform have gradually strengthened.

Foot-and-mouth disease vaccine is the company’s heavyweight product. The certification indicates that the company’s intelligent park has been gradually put into production. The new and old parks are currently in a parallel transition stage.

The company’s industrialization upgrade leads the way, and the intelligent park reaches German industry4.

0 standard, the entire process of intelligent management can ensure uniform and stable vaccine quality.

The company’s R & D platform construction has repeatedly made breakthroughs. The P3 laboratory has been approved for CNAS. Foot-and-mouth disease and African swine fever virus have been approved, and its research and development capabilities have been further strengthened.

The company’s development from the traditional industrialization drive to the integrated advantages of research, production and sales has been steadily progressing, and the trend has become clearer.

The production capacity of pigs is gradually recovering, and the turning point of performance can be expected.

The Central Government Document No. 1 in 2020 has raised hog production to an equally important level as grain production, and has helped to ensure that hog production at the end of the year will basically return to near-normal levels.

Although the rest of the non-plague and new corona epidemic disturbances, the trend of gradual recovery of downstream pig production capacity remains unchanged. It is expected that the pig inventory will gradually rise steadily, especially the recovery of the group’s breeding scale will be more advanced.

The company, as a leading company in product strength and a relatively high proportion of pig vaccine products, is committed to fully enjoying the high elasticity of demand brought by the downstream rebound, and this year has ushered in a turning point in performance.

Company profit forecast and investment rating: We expect the company’s net profit attributable to its parent to be 2 in 2019-2021.

2, 5.

92 and 8.

53 trillion, the corresponding EPS is 0.

19, 0.

51 and 0.

73 yuan.

The current sustainable corresponding PE for 2019-2021 is 120, 45 and 31 times respectively, maintaining the “strongly recommended” level.

Risk reminder: industry demand recovery is less than expected, disease risk, etc.