\u3000\u3 Shengda Resources Co.Ltd(000603) 288 Foshan Haitian Flavouring And Food Company Ltd(603288) )
Event: the company released its 2021 annual report. In 2021, the company achieved a total operating revenue of 25.004 billion yuan, yoy + 9.71%, basically in line with our expectations; The net profit attributable to the parent company was 6.671 billion yuan, yoy + 4.18%, basically in line with our expectations; The net profit deducted from non parent company was 6.43 billion yuan, yoy + 4.09%.
Steady income growth was achieved under multiple pressures, and Q4 accelerated month on month. In the past 21 years, enterprises in the condiment industry faced multiple pressures such as community group buying squeezing Superman traffic, weak terminal demand, channel destocking and deteriorating competition pattern. The company bucked the trend and achieved steady income growth. In the fourth quarter alone, the company achieved a total operating revenue of 7.01 billion yuan, yoy + 22.85%. We believe that it is mainly due to the easing of the pressure on community group purchase channels, the marginal recovery of terminal demand and the marginal improvement of industry environment. The company has actively arranged community group purchase channels since the third quarter. At the same time, it has continuously pushed forward the sinking of channels and the expansion of channels has contributed to the increase of income.
The increase of volume is higher than that of price, and the multi regional balanced growth. The sales volume of soy sauce / sauce / oil consumption of the company increased by 8.44% / 5.19% / 11.46% respectively, and the ton price increased by + 0.31% / + 0.40% / – 1.15% respectively year-on-year. Sales growth is the main source of revenue increment. The revenue growth of the Eastern / Southern / central / northern / western regions of the company was 7.47% / 8.40% / 14.03% / 6.69% / 9.34% respectively, and the growth of each region was relatively balanced.
Cost suppresses profits, controls expenses and achieves efficiency. The gross profit margin of the company’s main business in the whole year was 39.78%, down 3.73 PCT year-on-year, mainly due to the rapid rise of raw material costs and the thinning of the company’s profits. In order to cope with the rising cost of raw materials, the company took the initiative to streamline the cost investment, and the rate of sales / management / Finance / R & D expenses decreased by 0.56/0.01/0.62/0.04pct respectively year-on-year. The decline in fees boosted the net interest rate.
Investment suggestion: we lowered the company’s revenue forecast from 2022 to 2023 to 28.490/32.269 billion yuan, expected to achieve revenue of 36.866 billion yuan in 2024, lowered the company’s profit forecast from 2022 to 2023 to 7.519/8.712 billion yuan, and expected to achieve profit of 10.085 billion yuan in 2024, corresponding to EPS 1.5 billion yuan in 20222024 78 / 2.07/2.39 yuan / share, corresponding to pe50 / 44 / 38x, maintaining the “overweight” rating.
Risk tip: raw material prices rise, industry competition intensifies, and the epidemic situation repeats.
