\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 99 Yihai Kerry Arawana Holdings Co.Ltd(300999) )
Event: the company released the annual report of 2021, and the annual operating revenue of the company was 226.23 billion yuan, with a year-on-year increase of 16.06%; The net profit attributable to the parent company was 4.132 billion yuan, a year-on-year decrease of 31.15%; The net profit deducted from non parent company was 4.996 billion yuan, a year-on-year decrease of 43.17%. In addition, the company plans to pay 0.77 yuan for 10. Q4 revenue increased month on month. In Q4, the company achieved a revenue of 63.5 billion in a single quarter, a year-on-year increase of + 15.6% and a month on month increase of + 16.7%; The net profit attributable to the parent company was 450 million yuan, with a year-on-year increase of – 50.5% and a month on month increase of – 36.6%; The net profit deducted from non parent company was 840 million yuan, with a year-on-year increase of – 66.8% and a month on month increase of + 242.6%.
The main business is stable, waiting for cost improvement. 1) From the perspective of revenue, the overall growth of the company is stable, and the revenue of kitchen food / feed raw materials and oil technology business is 141.98/82.51 billion respectively, with a year-on-year increase of + 17.1% / + 13.8% respectively. The sales revenue of distribution / direct selling reached 160.2 billion / 66.03 billion respectively, with a year-on-year increase of + 22.4% / + 3.1% respectively; 2) From the perspective of profitability: the company’s short-term performance is under pressure, mainly due to the sharp rise in the prices of raw materials such as soybean and palm oil, and the year-on-year increase of purchase price of more than 30%. The overall gross profit margin of the company throughout the year is 8.2% (after considering the impact of freight, – 2.8pct), of which the gross profit margin of kitchen food / feed raw materials and oil technology business is 8.3% (- 3.2pct) / 7.4% (- 2.2pct), and the gross profit margin of direct sales / distribution channels is 7.9% (- 2.2pct) / 8.8% (- 4.0pct) respectively; In addition, affected by hedging losses, the company’s annual net interest rate attributable to the parent decreased to 1.83% (- 1.3pct).
Production capacity expanded steadily and channel expansion continued to strengthen. In 2021, the company added 5 production bases nationwide, now has 71 production bases, and has built several production bases in Chaozhou, Lanzhou and other places. In 2021, the actual production capacity of oilseed pressing, oil refining, oil filling, rice processing and wheat processing of the company reached 1062 (- 29.6%), 536 (- 14.2%), 554 (- 5.7%), 348 (0.5%) and 927 (27.7%) million tons, and the total production capacity under construction was 12.68 million tons. In addition, the company’s channel expansion continued to advance. In 2021, the number of dealers increased to 6121 (+ 20.1%), and the increment was concentrated in the southern and eastern regions with relatively developed market, which helped the company improve market sensitivity and channel control and further enhance its leading advantage.
Actively carry out high growth and complementary businesses to create incremental profits. The central kitchen project of the company is under preparation in Hangzhou, Chongqing, Langfang, Xi’an and other places. Among them, the Hangzhou project has entered the trial production stage and will have product output soon, which is expected to provide new impetus for the performance of the company. In terms of soy sauce business, the company plans to adopt the dual brand and dual strategy development strategy. At present, the phase II project of Wanzhuang soy sauce in Taizhou is under preparation, and the production capacity is expected to double after completion. Yangjiang soy sauce factory is also under preparation, and plans to produce Cantonese soy sauce in the future.
Profit forecast: the company is expected to achieve revenue of 251.78 billion yuan, 280.43 billion yuan and 312.48 billion yuan in 2022, 23 and 24 respectively; The net profit attributable to the parent company was RMB 6.66/81.0/9.09 billion, 61.3% / 21.6% / 12.2% year-on-year, corresponding to PE of 40.6/33.4/29.8x, maintaining the rating of “overweight”.
Risk tip: the price of raw materials fluctuates, the industry competition intensifies, the capacity construction is less than expected, and the new business expansion is less than expected
