\u3000\u3 Shengda Resources Co.Ltd(000603) 345 Fu Jian Anjoy Foods Co.Ltd(603345) )
Event:
The company announced that it plans to invest about 1 billion yuan in Hubei Honghu Anjing prefabricated dish production project.
High prosperity of prefabricated dishes and actively expand production layout
This prefabricated dish production project is a major strategic layout of the company in the near future. The project is located in Honghu Economic Development Zone, Hubei Province. The investment of Anjing group accounts for 90%, covering an area of about 233 mu. It is expected to build 150000 square meters of new plants, and new workshops for seasoning crayfish, split fish, pickled fish, grilled fish and other aquatic products, Lotus root and other Shenzhen Agricultural Products Group Co.Ltd(000061) deep processing workshops and supporting meat and poultry dishes workshops. The project is invested in two phases, each of which takes about 24 months to complete and put into operation, and the output will be reached within 3 years after the two phases are put into operation.
Expand production to provide production capacity guarantee, self production to improve profitability
The company’s original production mode of prefabricated dishes is mainly based on supply chain labeling, and the sub brand Mr. frozen products has rapidly expanded channel sales. Now it has created large single products such as pickled vegetable fish, black pepper cowboy bone, tempura shrimp and so on. Through this investment project, the company actively strengthened its production capacity of prefabricated vegetables and implemented the business model of “self production + supply chain labeling + M & a” in the prefabricated vegetables industry, reflecting the company’s confidence in the layout of the prefabricated vegetables industry. We believe that on the one hand, this project can provide capacity guarantee for the company’s Prefabricated vegetable business and speed up product promotion; On the other hand, it also forms strong regional synergy with the company’s central China production base and XINHONGYE, a subsidiary mainly engaged in freshwater crayfish and freshwater surimi, which is expected to improve the company’s profitability and tap the market potential in Central China.
The cost pressure is relieved, and a number of measures are taken to ensure steady operation
We believe that the maximum time point of the company’s cost pressure has passed, and the price increase measures of 21q4 may protect the company’s profitability under cost fluctuations. From the perspective of raw materials, surimi and chicken prices are expected to remain stable, pork will release part of the cost pressure after digesting the high price inventory, oil prices are high, soybean protein prices are at an all-time high, but the consumption is small, and the impact is limited. We believe that when the cost pressure affects the whole industry, the company, as a leading enterprise, can better reflect the scale effect and highlight its competitive advantage.
Investment advice and profit forecast
The operation and management of the company is stable, the strategic planning of “selling real estate” is clear, the capacity under construction is released in an orderly manner, and the medium and long-term growth path is clear. Therefore, without considering the impact of fixed growth, we maintain the net profit forecast of 20212023 to be RMB 725 / 964 / 1240 million, EPS forecast to be RMB 2.97/3.94/5.07, corresponding to PE of 39 / 29 / 23 times, and continue to maintain the “buy” rating.
Risk tips
The intensification of industry competition affects profits, the cost of raw materials rises sharply, and food safety risks
