Investment Rating - The report does not explicitly state an investment rating for the company Core Viewpoints - Wuxi Jinghai is a national-level specialized and innovative "little giant" enterprise primarily engaged in the research, production, and sales of amino acid products, with a significant focus on branched-chain amino acids and other essential amino acids [4][27] - The company has experienced steady revenue growth, particularly in 2020 and 2021, but the growth rate has slowed in recent years, with a projected revenue increase of only 0.82% in 2023 and a net profit decline of 15.29% [10][30] - The amino acid market is expected to grow significantly, with the global market size projected to reach $49.42 billion by 2030, driven by increasing demand in pharmaceuticals, food, and health supplements [30][34] Company Overview - Main Business: Wuxi Jinghai focuses on amino acid product development, production, and sales, with over 70% of its revenue coming from pharmaceutical clients [4][27] - Product Introduction: The company offers a range of amino acids, including isoleucine, valine, leucine, tryptophan, phenylalanine, and proline, applicable in various industries such as pharmaceuticals, food, health products, and daily chemicals [4][27] - Financial Situation: The company has shown consistent revenue growth, with significant increases in 2020 (34.78%) and 2021 (44.06%), but a slowdown in growth has been noted in recent years [10][30] Financial Performance - Revenue and Profitability: The average gross margin from 2020 to 2022 was 32.64%, while the average net margin was 18.16%. The company’s gross margin is below the industry average due to product differentiation [10][20] - R&D Investment: The company maintains a research and development expense ratio of around 5%, with an average R&D expenditure of 17.31 million yuan from 2020 to 2022 [20][21] - Asset Management: The company has a low debt ratio and a high cash income ratio, indicating strong cash flow management [20][21] Industry Analysis - Amino Acid Industry: The global amino acid market reached $26.19 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 7.5% from 2022 to 2030 [30][34] - Downstream Industry Growth: The rapid development of the pharmaceutical and cell culture industries is expected to further drive the demand for amino acids [34][38] - Competitive Landscape: Comparable companies in the industry include Yuan Da Pharmaceutical, Jin Yao Pharmaceutical, and Hua Heng Biological, with varying market capitalizations and growth rates [42][44]
北交所个股研究系列报告：氨基酸“小巨人”企业