\u3000\u3000 Chacha Food Company Limited(002557) (002557)
Event description
The company issued a performance express. In 2021, the operating revenue was 5.985 billion yuan, a year-on-year increase of 13.15%; The net profit attributable to the parent company was 930 million yuan, a year-on-year increase of 15.52%; The basic earnings per share is 1.83 yuan.
Event comments
The advance of Spring Festival and the price increase of some products increase Q4 income. In 2021, the company achieved an operating revenue of 5.985 billion yuan, a year-on-year increase of 13.15%; The net profit attributable to the parent company was 930 million yuan, a year-on-year increase of 15.52%. Among them, Q4 achieved an operating revenue of 2.103 billion yuan in a single quarter, with a year-on-year increase of 28.33%, and the net profit attributable to the parent company was 340 million yuan, with a year-on-year increase of 21.97%. The performance of Q4 accelerated month on month growth, mainly due to: 1) the price increase stimulated the acceleration of channel goods preparation; 2) The Spring Festival is ahead of schedule this year, and the goods preparation cycle in peak season is ahead of schedule.
The price increase of melon seed series is smooth, and the organizational structure is adjusted to improve efficiency. On October 22, 2021, the company issued a price increase announcement to adjust the ex factory price of sunflower seed series products, pumpkin seeds and small and fragrant watermelon seeds. The price increase range of each category is 8% – 18%. The price implementation will begin on October 22, 2021. On the day of release, the ex factory price of dealers has been fully adjusted. At present, the prices of terminals and stores have been adjusted and are progressing smoothly. Referring to the price increases of the company in 2013 and 2018, it has little impact on the sales volume of the company. In addition, in the organizational structure of the company, the business division in the early stage is adjusted into a category center, and the power of the business division is delegated to each category bu. The person in charge of category Bu is the person in charge of all channels and all profits and losses of products; Sales Tiejun is divided into Guokui sales Tiejun and nut sales Tiejun. After the structure adjustment, category Bu and sales Bu can cooperate freely and fully, and the decision-making speed of regional promotion scheme, brand communication and pricing will be greatly improved, which can respond to channel changes more flexibly and quickly and improve efficiency.
The product channels are making concerted efforts, and the enterprise is expected to continue to grow. 1) In terms of products, the company continues to focus on the business development of melon seeds and nuts. The red bag melon seeds of sunflower seed series maintain steady growth through product quality upgrading and channel intensive cultivation optimization. The blue bag melon seeds continue to expand channels, make continuous breakthroughs in flavor, and constantly enrich the product matrix; Nuts create the second growth curve, expand the positioning of daily nuts to daily nutritional necessities, and create national healthy ingredients. 2) In terms of channels, the company has built a channel intensive cultivation platform. At present, about 120000 terminals have been incorporated into the channel intensive cultivation system, which is conducive to improving the penetration rate. At the same time, increase the layout of convenience stores, campus stores, community stores and other channels, so as to cope with the decline of Ka channel traffic.
Investment advice
As a leader in the breakdown of leisure food, the company has a smooth transmission of price increase and thickened the enterprise performance in the short term.
In the medium and long term, the company ensures the rapid growth of the enterprise by strengthening product innovation, expanding new channels, organizational reform and enhancing vitality. It is estimated that the net profit attributable to the parent company from 2020 to 2022 will be 805 million, 930 million and 1.100 billion, and the EPS will be 159 yuan, 183 yuan and 217 yuan respectively. Corresponding to the current stock price, PE will be 30 times, 26 times and 22 times respectively. Maintain the “buy” rating.
There are risks
Food safety risks, macroeconomic downside risks and fierce product competition
