\u3000\u3 Shengda Resources Co.Ltd(000603) 027 Qianhe Condiment And Food Co.Ltd(603027) )
The strategy focuses on "zero addition" and deepens brand symbolization. The company focuses on high-end "zero addition" products, and has high fresh and medium and low-end product series to achieve full price coverage. The company focuses its strategic resources on the "zero addition" series, highlights the zero addition brand color in packaging design and advertising, and continues to deepen brand symbolization. We believe that the company's main "zero addition" products are in line with the consumption upgrading trend and are expected to strengthen the company's competitive advantage in the industry.
Actively expand the national market and make joint efforts through multiple channels. The company continues to deeply cultivate the southwest market of its base camp, focusing on the layout of business supermarkets and e-commerce channels. In other port areas, it adapts measures to local conditions, and takes multiple measures such as direct sales and large business distribution. In 2021, the leaders and sales backbone of the catering business department were replaced, and the catering channels began to work. In June, the company put the community group purchase business under the e-commerce division, and focused on attracting investment and selecting products in the second half of the year. In the second half of the year, the company began to attract investment through circulation channels. The joint efforts of multiple channels are expected to provide performance increment.
Endogenous epitaxial capacity expansion, simultaneous development of three industries and common growth. The company accelerated the construction of its own production capacity. In 2021, the project of "brewing soy sauce and vinegar with an annual output of 250000 tons" was launched, and the project of "intelligent manufacturing of condiments with an annual output of Shanghai Pudong Development Bank Co.Ltd(600000) tons" was started. The company's soy sauce production and marketing rate and capacity utilization rate are relatively tight, and the new capacity is put into operation, which is expected to support the improvement of the company's sales volume. In terms of outsourcing, the company acquired Hengkang soy sauce and vinegar with the famous trademark "Jinshan Temple" in Jiangsu Province in 2019, accelerating the company's expansion in the East China market.
Investment suggestion: we estimate that the company's operating revenue from 2021 to 2023 will be RMB 1.914/2.833/2.632 billion respectively, the net profit attributable to the parent company will be RMB 235/3.61/443 million respectively, the EPS will be RMB 0.29/0.45/0.55/share respectively, and the corresponding PE will be 59 / 38 / 31 times respectively. We choose Foshan Haitian Flavouring And Food Company Ltd(603288) , Jonjee Hi-Tech Industrial And Commercial Holding Co.Ltd(600872) , Jiajia Food Group Co.Ltd(002650) , Jiangsu Hengshun Vinegar-Industry Co.Ltd(600305) as the comparable company. Considering the current valuation level of the comparable company and the historical valuation level of the company, we give the company 50xpe in 2022, corresponding to the target price of 22.59 yuan, covering it for the first time, and give the company a "buy" rating.
Risk warning: the price increase is less than expected; The progress of replacing dealers in East China is less than expected; The recovery of shangsuperman traffic is less than expected; Repeated outbreaks; Industry competition intensifies.
