\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 99 Yihai Kerry Arawana Holdings Co.Ltd(300999) )
Core view
In 2021, the revenue increased steadily and the net profit was under pressure periodically. The company's revenue in the 21st year was + 16.1% to 226.2 billion yuan year-on-year, and the net profit attributable to the parent company was - 31.2% to 3.68 billion yuan year-on-year; 21q4 revenue + 15 / 6% year-on-year to 63.5 billion yuan, and the net profit attributable to the parent decreased by 50.5% year-on-year to 451 million yuan. In addition, the company's gross profit margin for 21 years was 8.18%, a year-on-year decrease of 34%; During the period, the expense rate was 4.55%, a year-on-year decrease of 15%. Under the background of rising raw material prices, the company achieved efficiency maximization and economies of scale through large comprehensive enterprise groups, and the cost control advantage was prominent.
The rise in raw material prices has compressed the profit space, and the diversified business of kitchen food has developed steadily. The core reasons for the year-on-year decline in profits are as follows: 1) the rising prices of edible oil, wheat and other raw materials. In 2021, the purchase price of soybeans and processed products of the company increased by more than 30% year-on-year. Affected by the weak consumption, the price increase of products failed to fully cover the rising costs, resulting in pressure on profits; 2) With the recovery of covid-19 epidemic, the proportion of product sales in catering channels increased, but the low gross profit margin of catering channels also lowered the overall gross profit margin of the company; 3) Due to the rise of soybean market, the purchase volume and crushing volume of soybean crushing business decreased year-on-year, so the profit growth rate was weak year-on-year. The overall scale of the kitchen food business has expanded steadily. The company's rice, noodles, condiments, central kitchen and other new businesses are developing well. The company continues to strengthen the promotion of high-end products to meet the growing demand of consumers for high-quality kitchen food, and has launched high-end oil rice products such as "simple food organic" high-end food oil gift box and new rice fresh series; At the same time, according to the local characteristics and tastes, it launched Yihai Kerry Arawana Holdings Co.Ltd(300999) golden dumplings, snowflake dumpling powder, Yihai Kerry Arawana Holdings Co.Ltd(300999) whole wheat flour, Shanxi beef noodles and other local characteristic vermicelli, which has achieved good market feedback and is expected to become a new performance growth point of the company.
The central kitchen project is advancing steadily, and the advantages of intensive and large-scale will be gradually reflected Yihai Kerry Arawana Holdings Co.Ltd(300999) has excellent management and has the ability of industrial chain extension and diversified development. Relying on the existing brand and channel advantages, it continues to develop new products and enter new fields, and successfully replicates the experience of small packaging and branding of edible oil to rice, flour, noodles, condiments, oil and fat technology and other fields. The central kitchen is also one of the key development directions of the company in the future. It aims to build an ecological chain platform for Chinese food industrialization with grain staple food as the core. The central kitchen projects in Hangzhou, Chongqing, Langfang, Xi'an and other places are under accelerated construction and will be put into operation in 2022. We believe that the central kitchen has a close relationship with Yihai Kerry Arawana Holdings Co.Ltd(300999) existing rice flour oil, condiments and other kitchen food businesses. Through the extension of the industrial chain, it is expected to better integrate the company's existing products and channel resources, give full play to synergy and look forward to the long-term development of the company.
Risk tip: the risk of periodic fluctuation of feed industry affected by abnormal weather and epidemic diseases.
Investment suggestion: kitchen food is the leader, diversified development is worth looking forward to, and maintain "buying". The company is a high-quality growth target with excellent management. It has obvious advantages of "strong brand + multi-channel + low cost". The leading position of kitchen food is stable and optimistic about long-term development. It is estimated that the EPS of 21-23 years will be 1.19/1.33/1.57 yuan respectively, and the corresponding PE will be 51 / 45 / 39x, maintaining the "buy" rating.
