\u3000\u3 Bohai Water Industry Co.Ltd(000605) 339 Namchow Food Group(Shanghai) Co.Ltd(605339) )
The company issued its annual report for 2021. In 2021, the company realized an operating revenue of 2.873 billion yuan, an increase of 23.71% at the same time; The net profit attributable to the parent company was 368 million yuan, an increase of 13.27% at the same time. Among them, 2021q4 company achieved an operating revenue of 818 million yuan, an increase of 15.09%.
Revenue side: in 2021, the company realized an operating revenue of 2.873 billion yuan, an increase of 23.71% at the same time. Among them, 21q1 / Q2 / Q3 / Q4 achieved operating revenue of 6.47/7.14/6.93/818 billion yuan respectively, with an increase of 49.69% / 29.92% / 10.14% / 15.09% respectively. In terms of products, in 2021, the company's baking application grease / light cream / imported products / frozen dough / stuffing achieved revenue of RMB 1.691/4.77/5.02/1.78/17 billion respectively. Gross profit margin: the company's gross profit margin in 2021 is 31.12%, with a decrease of 7.66pct. Quarterly, Q1-Q4 gross profit margin in 2021 is 38.80% / 35.92% / 29.95% / 22.14% respectively. In terms of products, the gross profit margin of baking grease / light cream / imported products / frozen dough / stuffing is 30.88% / 36.37% / 27.69% / 32.67% / - 30.57% respectively.
The company's expenses for the same period decreased by 86.01t in 2021. The sales expense rate was 7.36%, with a decrease of 3.77 PCT; The financial expense rate was - 0.74%, with a decrease of 0.57pct, mainly due to the deposit interest of the initial raised funds received by the company in the current period.
Profit side: the company realized a net profit attributable to the parent company of 368 million yuan in 2021, an increase of 13.27% at the same time. In the post epidemic era, the consumption trend has gradually changed. From Q1 to Q4 in 2021, the net profit attributable to the parent company was RMB 0.98/0.98/0.78/0.95 billion respectively, with a year-on-year change of + 126.99% / + 27.17% / - 9.54% / - 20.28%.
Channel side: the number of distributors of the company is 305, with 54 newly added, including 77 / 58 / 50 / 32 distributors in South China / Central China / East China / southwest, with a year-on-year change of + 4.05% / + 11.54% / - 10.71% / - 13.51% respectively. During the reporting period, the company continued to expand channels, accelerate the refinement and sinking of the sales network in the first and second tier cities, and improve the growth momentum of the third and fourth tier cities.
Supply side: the production capacity of frozen dough is gradually released. In 2021, the company orderly promoted the upgrading and construction of various production lines, and further increased production capacity and profits by building and expanding frozen dough production lines. Shanghai Nanqiao phase II frozen dough project has started work, and the production capacity is expected to be gradually released.
Investment suggestion: as a leader in the baking oil industry, the company has strong technical accumulation to help stabilize the product quality. The company will continue to cultivate the baking market, unlock new consumption scenes such as tea and catering, and release the potential of overseas business. Its future performance is expected to continue to develop at a high speed. Affected by the price of raw materials, we adjusted the forecast of the company's net profit attributable to the parent company from 2022 to 2023 to RMB 440 / 540 million (the previous value was RMB 520 / 740 million), corresponding to pe23x / 19x, and maintained the buy rating.
Risk warning: repeated epidemic risk, raw material price fluctuation risk, and the company's operation is not as expected
