\u3000\u3 Shengda Resources Co.Ltd(000603) 288 Foshan Haitian Flavouring And Food Company Ltd(603288) )
Conclusions and suggestions:
Performance summary:
It was announced that the annual revenue was 25 billion, a year-on-year increase of 9.7%, the net profit was 6.67 billion, a year-on-year increase of 4.2%, and the gross profit margin decreased by 3.5 percentage points to 38.7%; 4q achieved a revenue of 7.01 billion, a year-on-year increase of 23%, recorded a net profit of 1.96 billion, a year-on-year increase of 7.2%, and the gross profit margin decreased by 3.73 percentage points to 38.13%. 4q performed slightly better than we expected. Dividend scheme: cash dividend of 7.6 yuan for every 10 shares and bonus shares of 1 share.
Throughout the year, the company’s revenue of soy sauce, oyster sauce and seasoning sauce reached 14.2 billion, 4.53 billion and 2.67 billion respectively, with a year-on-year increase of 8.8%, 10.2% and 5.6% respectively. It has improved quarterly since the second quarter. 4q in a single quarter, the revenue of the three categories was 4 billion, 1.34 billion and 660 million respectively, with a year-on-year increase of 20.8%, 21.3% and 13.6% respectively. The growth is obvious. It should mainly benefit from the weakening impact of group purchase in the community and the price increase in late October (ranging from 3% – 7%). At present, the price increase has been digested smoothly, and the terminal sales have not been significantly affected. In the short term, affected by the peripheral market, the soybean price remains high, or causes a certain cost pressure, but the overall impact is controllable through product portfolio adjustment and cost control.
In terms of products, in addition to the current three single products, the company has been transforming to a condiment platform enterprise for many years. At present, cooking wine, vinegar and other categories have begun to take shape and developed rapidly. In 21 years, the total revenue of other categories was 2.2 billion, a year-on-year increase of 13.4%. This year, the new categories are expected to continue to develop well and further enhance the company’s competitive strength.
On the pipeline, after the impact of community group purchase last year, the company significantly accelerated the layout of new retail pipelines and accelerated market transformation. In the year of 21, the annual online revenue was 700 million, with a year-on-year increase of 85.2%, and the growth rate of 4q reached 186%. The offline pipeline has not been relaxed. The number of dealers has been continuously increased, with a net increase of 379. This year, it is expected to continue to develop in-depth multi-channel collaborative development
In terms of expenses, affected by the cost pressure, the company further strictly controlled the expenses. The annual expense rate decreased by 1.23 percentage points to 7.75% year-on-year, and the 4Q single quarter expense rate increased by 3.24 percentage points to 6.79%, mainly due to the base period difference caused by the adjustment of 20q4 income standard.
In terms of cash flow, the net cash inflow from operating activities in the whole year was 6.32 billion, a year-on-year decrease of about 9%, mainly due to the increase in procurement costs and labor remuneration caused by the rise in the price of raw materials in the first half of the year.
In terms of capacity, the company has basically completed the layout of national capacity bases. At present, the overall capacity utilization rate remains above 95%. It is expected to speed up the construction of various bases and accelerate the release of capacity in the future.
In the short term, the balance of 4q contract liabilities is 4.7 billion, an increase of 5.8% year-on-year. It is expected that the overall performance in the first quarter will maintain a steady growth. The domestic epidemic will temporarily suppress the recovery of catering, but with the improvement of the epidemic, catering consumption will eventually recover. We maintain the judgment that the company’s performance will be better quarter by quarter. It is expected that from 2022 to 2023, the net profit will be 7.46 billion and 8.68 billion respectively, with a year-on-year increase of 12% and 16% respectively. The EPS will be 1.77 yuan and 2.06 yuan respectively. The current share price corresponds to 51 times and 44 times of PE respectively, maintaining the investment proposal of “interval operation”.
Risk tip: the cost pressure is higher than expected, the catering recovery is lower than expected, and the expansion of new retail channels is lower than expected
