\u3000\u3 Shengda Resources Co.Ltd(000603) 288 Foshan Haitian Flavouring And Food Company Ltd(603288) )
Event: the company released its annual report. In 2021, the company achieved a revenue of 25.004 billion yuan, a year-on-year increase of 9.71%; The net profit attributable to the parent company was 6.671 billion yuan, a year-on-year increase of 4.18%. Among them, single Q4 achieved an operating revenue of 7.010 billion yuan, a year-on-year increase of 22.85%; The net profit attributable to the parent company was 1.963 billion yuan, a year-on-year increase of 7.19%.
Revenue improved quarter by quarter, and Q4 price increase effect appeared. The revenue of each quarter was + 22% / – 9% / + 3% / + 23% year-on-year, and continued to improve month on month. The company’s dynamic sales were weak in the second quarter. We think the main reasons are: 1) repeated epidemic; 2) The home hoarding brought by the epidemic in 20 years has slowed down the demand at the C-end; 3) The impact of emerging channels of community group buying; 4) The replenishment base of channels in 20 years is high. In the second half of the year, the company cooperated with community group buying, and the impact of emerging channels on the company was alleviated, superimposed with the recovery of industry demand and the improvement of dynamic sales month on month. On the other hand, in order to cope with the rising pressure of raw material costs, the company raised the ex factory prices of some products by 3% – 7% in October. In the fourth quarter, the effect of price increase appeared, and the revenue growth rate increased month on month compared with Q3.
The three core categories maintained stable development, and the new retail channels achieved remarkable results. By product, the company’s soy sauce / sauce / oil consumption achieved a revenue of 14.2/27/4.5 billion yuan, a year-on-year increase of + 9% / 6% / 10%; The sales volume of soy sauce / sauce / oil consumption was + 8% / 5% / 11% year-on-year respectively, and the ton price was + 0.3% / + 0.4% / – 1.2% year-on-year respectively. In terms of subregions, the East / South / middle / North / west regions increased by 7% / 8% / 14% / 7% / 9% year-on-year, and the central and Western markets continued to maintain a leading growth rate. By channel, offline / Online + 8% / 85% year-on-year. In the second half of the year, the company actively responded to the impact of community group purchase, accelerated the layout of new retail channels, and strengthened the in-depth cooperation with community group purchase, Shida home platform and e-commerce of major platforms. In addition, the company continued to promote the fission and sinking of channels. In 2021, the company had 7430 dealers, an increase of 379 year-on-year.
Under the pressure of cost, the company’s profit is under pressure in the short term. The price of packaging materials, soybeans and other raw materials continued to rise, which still put pressure on the company’s gross profit margin. In 21 years, the company achieved a gross profit margin of 39%, a year-on-year decrease of 3.5pcts, and the gross profit margin of soy sauce / sauce / oil consumption decreased by 4.5/4.7/0.8pcts year-on-year. The company’s 21-year sales / management / R & D expense ratio was 5.43% / 1.58% / 3.09% respectively, with a year-on-year change of -0.56 / -0.01 / -0.03pct, and the expense ratio decreased. The annual net interest rate was 26.68%, a year-on-year decrease of 1.44 PCTs. Looking forward to 22 years, the company’s raw material cost pressure still exists, but under the background of price increase effect and cost reduction and efficiency increase of the company itself, the profitability is expected to maintain a stable level.
The competitive advantage of C-end continues to strengthen, and the comprehensive competitiveness of the company continues to take the lead. Looking forward to 22 years, the company plans to achieve an operating revenue target of 28 billion yuan and a profit target of 7.47 billion yuan, that is, it plans to achieve a year-on-year increase of 11.98% / 11.98% in revenue / profit. It is expected to maintain the level of net interest rate in 2021 and show confidence. Under the pressure of catering in 20 and 21 years, the company can still maintain stable growth. We judge that the company strengthens the layout and development of C-end market, and the competitiveness of C-end continues to improve. At the same time, the company has basically completed the layout of national production bases and accelerated the capacity release of multiple bases. At present, the overall capacity utilization rate of the company remains above 95%, and the release of capacity also provides guarantee for the long-term and stable development of the company. Profit forecast: according to the company’s 22-year target guidelines and the current raw material cost is still high, adjust
According to the overall profit forecast, the company is expected to achieve a revenue of 28.9/33.6/39 billion yuan in 22-24 years, with a year-on-year increase of 15.67% / 16.26% / 16.04% (the value before 22 / 23 was 18.5% / 17.4%), a net profit of 7.515/93.50/11.213 billion yuan, with a year-on-year increase of 13% / 24% / 20% (the value before 22-23 was 19.68% / 19.06%), and EPS of 1.78/2.22/2.66 yuan respectively, maintaining the “buy” rating of the company.
Risk warning: macroeconomic downside risk; Food safety risks; Covid-19 epidemic risk; Risk of rising costs
