\u3000\u3 Shengda Resources Co.Ltd(000603) 288 Foshan Haitian Flavouring And Food Company Ltd(603288) )
Event: the company realized revenue of RMB 25.004 billion in 2021, with 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%; The net profit attributable to the parent company after non deduction was RMB 6.430 billion, a year-on-year increase of 4.09%. Among them, the revenue of 2021q4 was 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%; The net profit attributable to the parent company after non deduction was 1.849 billion yuan, a year-on-year increase of 4.02%.
In 2021, it will grow in difficulties, the cost will rise, and the gross profit margin will be under pressure. In 2021, affected by many adverse factors such as repeated covid-19, weak demand and community impact, the company’s annual condiment revenue was 23.597 billion yuan, still with a year-on-year increase of 9.09%. The revenue in 2021q4 accelerated month on month compared with the first three quarters, mainly benefiting from the increase in channel stock driven by price increase; The gross profit margin of condiments decreased by 3.73 PCT year-on-year, mainly due to the rise of costs. In terms of products, in 2021, the revenue of soy sauce increased by 8.78% year-on-year, the sales volume increased by 8.44% year-on-year, the ton price increased by 0.31% year-on-year, the unit cost increased by 8.83% due to the rise of raw materials, and the gross profit margin decreased by 4.47 PCT; Oyster sauce revenue increased by 10.18% year-on-year, sales volume increased by 11.46%, ton price increased by – 1.15% year-on-year, unit cost was flat, and gross profit margin decreased by 0.75 PCT; Seasoning sauce revenue increased by 5.61% year-on-year, sales volume increased by 5.19% year-on-year, ton price increased by 0.40% year-on-year, unit cost increased by 8.81% due to the rise of raw materials, and gross profit margin decreased by 4.68 PCT; The revenue of other condiments increased by 13.37%, and the gross profit margin decreased by 3.39 PCT. By region, in 2021, the company’s revenue in the East, South, central, North and West increased by 7.47%, 8.40%, 14.03%, 6.69% and 9.34% respectively. Throughout the year, the company’s dealers increased by 379 to 7430.
The expense rate is well controlled to ease the pressure on net interest rate. In 2021, the company’s sales, management, R & D and financial expense rates were -0.56, -0.01, -0.03 and -0.62 PCT respectively to 5.43%, 1.58%, 3.09% and – 2.34% year-on-year. The decrease of sales expense rate is mainly due to the decrease of labor cost and the good control of advertising expenses; The decrease of financial expense rate is mainly due to the increase of interest income. Although the rise in costs led to a year-on-year decrease in the company’s comprehensive gross profit margin of 3.51 PCT to 38.66% in 2021, the decrease in expense rate eased the pressure on net profit margin, and the annual net profit margin decreased by only 1.44 PCT to 26.68% year-on-year.
In 2022, we will strive for progress while maintaining stability, demonstrating the leading enterprise’s ability to resist risks. According to the annual report, the company’s planned revenue target in 2022 is 28 billion yuan, a year-on-year increase of 12%, and the profit target is 7.47 billion yuan, a year-on-year increase of 12%. On the one hand, it is rare for the company to still strive to achieve a steady growth of 12% under the background of repeated uncertainty of the epidemic in 2022; On the other hand, in the environment of sharp rise in the cost of raw materials and packaging materials in 2022, the company plans to keep the annual net interest rate flat in 2021, reflecting the ability and confidence of the leader to reduce costs and increase efficiency.
Profit forecast: according to the company’s annual report and considering the cost pressure, we adjusted the profit forecast. It is estimated that the company’s revenue from 2022 to 2024 will be 28.038 billion yuan, 32.336 billion yuan and 36.88 billion yuan respectively, the net profit attributable to the parent company will be 7.482 billion yuan, 9.147 billion yuan and 10.937 billion yuan respectively (the original forecast value from 2022 to 2023 is 8.355 billion yuan and 9.935 billion yuan), and the EPS will be 1.78, 2.17 and 2.60 yuan respectively, corresponding to 51 times, 41 times and 35 times of PE, maintaining the “buy” rating.
Risk warning events: epidemic spread risk, food safety risk, price increase transmission is not as expected
