\u3000\u3000 Chongqing Fuling Zhacai Group Co.Ltd(002507) (002507)
Events
The company disclosed the 2021 performance express:
During the reporting period, the company achieved a revenue of 2.519 billion yuan, a year-on-year increase of 10.82%; The net profit attributable to the parent company was 742 million yuan, a year-on-year decrease of 4.53%.
In Q4, the company achieved a revenue of 563 million yuan, a year-on-year increase of 18.74%; The net profit attributable to the parent company was 238 million yuan, a year-on-year increase of 45.73%.
Brief comment
Q4 revenue growth accelerated, and mobile sales were good
After entering Q4, the overall dynamic sales continued to recover and achieved rapid growth. In the past 21 years, the company has invested in brand value building, carried out multi-dimensional publicity on products, and realized “precision marketing”. At the same time, the company further sank in channels, developed county-level markets and promoted sales growth. Considering the price increase announced by the company in November 21, the price increase range is between 3% – 19%. It is expected to contribute to the double-digit growth of the company’s revenue this year, so as to ensure the steady and good overall sales. Profits exceeded expectations and Q4 expenses are expected to shrink
The company’s Q4 profit increased significantly, and the net interest rate reached 42.30%, a year-on-year increase
7.84pct, 21.35pct higher than Q3. The main reasons for the substantial increase of the company’s net profit margin are as follows: ① the company’s Q4 sales are good, the chain speed is increased, and the cost-effectiveness ratio is optimized; ② The implementation of price increase in Q4 of the company can directly drive the improvement of gross profit margin; ③ The company’s expenses shrink. The former 3Q company has invested 223 million yuan in brand publicity, but the Q4 advertising expenses are very small. At the same time, Q4 is generally the company’s off-season sales, and its own channel expenses are also less. After the superposition of the company’s price increase, its own channel profit space increases, and the company’s expenses shrink in the same and month on month ratio, so as to optimize its profits; ④ After the fixed increase funds of the company are in place, there will be financial benefits in the short term. At present, the undue amount of financial management of the company has reached 3.2 billion yuan, and the financial rate is expected to decline.
22 years of cost reduction and enhanced profit certainty
According to the information of the company and Fuling District, in February this year, the purchase price of the company’s main raw material green vegetable head decreased. The current average price is about 800 yuan / ton, which is significantly lower than the price of more than 1200 yuan / ton last year. At the same time, the company adjusted the product price with the help of the price rise tide of the condiment industry last year. While optimizing its gross profit margin, it also thickened the channel profit, which is good for the double boost of the company’s revenue and profit this year. In terms of cost, the company estimated that the advertising cost last year was about 200-300 million. Although the brand publicity will continue to be launched this year, it is expected that the launch intensity will be reduced year-on-year, resulting in greater profit improvement and strong certainty of profit elasticity
Profit forecast:
It is estimated that from 2021 to 2023, the company will realize revenue of 2.519, 2.787 and 3.091 billion yuan and net profit attributable to parent company of 742, 969 and 1.119 billion yuan, corresponding to EPS of 0.84, 1.09 and 1.26 yuan / share.
Risk tips:
The price rise risk of qingcaitou, food safety risk, channel sinking effect is less than expected, etc.
