\u3000\u3 Shengda Resources Co.Ltd(000603) 288 Foshan Haitian Flavouring And Food Company Ltd(603288) )
Key investment points
Event: the company released its annual report for 2021, achieving a revenue of 25 billion yuan, a year-on-year increase of 9.7%; The net profit attributable to the parent company was 6.67 billion yuan, a year-on-year increase of 4.2%. Among them, 21q4 achieved a revenue of 7.01 billion yuan, a year-on-year increase of 22.9%, and a net profit attributable to the parent company of 1.96 billion yuan, a year-on-year increase of 7.2%. Q4 revenue slightly exceeded market expectations. At the same time, it is proposed to distribute a cash dividend of 7.6 yuan (including tax) for every 10 shares.
The growth of core categories slowed down, and the growth of online channels was bright. The company achieved revenue of 14.19 billion yuan (+ 8.8%), 4.532 billion yuan (+ 10.2%) and 2.67 billion yuan (+ 5.6%) respectively for soy sauce, oyster sauce and seasoning sauce in the whole year of the 21st century. In terms of split volume and price, the revenue growth was mainly contributed by volume growth. The annual sales volume of soy sauce / oyster sauce / seasoning sauce was + 8.4% / + 11.5% / + 5.2% respectively year-on-year, and the ton price was + 0.3% / - 1.2% / 0.4% year-on-year; Q4's revenue increased significantly month on month in a single quarter. The growth rates of soy sauce, oyster sauce and seasoning sauce were + 20.8% / + 21.3% / + 13.6% year-on-year respectively, which was mainly due to the early preparation of goods during the Spring Festival of 22 years and the company's opening of price increase in October to stimulate the preparation of goods. The category expansion of the company has been steadily promoted, and the annual revenue of other businesses has reached 2.21 billion yuan, with a year-on-year increase of 13.4%. Among them, vinegar and cooking wine have gradually formed scale advantages, contributing a total revenue of more than 1.1 billion yuan. In terms of channels, the company's annual revenue from online / offline channels was 22.89 billion yuan / 704 million yuan respectively, with a year-on-year increase of + 7.7% / 85.2%. The high growth of online channels was mainly due to the company's active strengthening of cooperation with community group purchase and other platforms, and the highlight of Haitian's strong brand strength advantage in community channels. The company continued to consolidate its nationwide layout. In the past 21 years, the number of dealers in China increased from 379 to 7403, and the number of dealers in all regions showed an increasing trend.
The cost of raw materials continued to rise, and the profitability was under slight pressure. In 2021, the company's gross profit margin was 38.7%, a year-on-year decrease of 3.5pp, of which the gross profit margin of Q4 in a single quarter was 38.1%, a year-on-year decrease of 3.7pp. The cost side pressure is mainly caused by the rise in the prices of raw materials such as soybeans and packaging materials. In terms of expense ratio, the sales expense ratio was 6.7%, with a year-on-year decrease of 0.6pp, mainly due to the reduction of expense investment in the current period; The management expense ratio remained stable, with a slight year-on-year decrease of 0.01pp to 1.6%. The pressure on the cost of raw materials continued. Thanks to the company's active internal adjustment, the efficiency optimization of the production end and the company's excellent cost control, the overall net profit margin of the company remained stable in the whole year of 21, with a slight year-on-year decrease of 1.4pp to 26.7%.
Raise prices to alleviate cost pressure, and achieve a stable and far-reaching goal in 22 years. Looking forward to 22 years, the prices of raw materials such as soybean and wheat in the condiment industry will remain high, and the cost side will continue to be under pressure. The price increase of the company was conducted smoothly last year, which is expected to partially alleviate the upward pressure on costs. In 2022, the company plans to achieve a revenue target of 28 billion yuan and a profit target of 7.47 billion yuan, with a corresponding growth rate of 12%. At a time when the epidemic is frequent and the catering and consumer demand of residents are frustrated, setting a steady growth target shows that the company has sufficient confidence in future development. In the past 22 years, the company has made the blade to itself, continued to promote the optimization and reform of internal management, and strengthened the innovation of channels and products. The annual performance is expected to achieve steady growth.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 1.77 yuan, 2.01 yuan and 2.25 yuan respectively, and the corresponding dynamic PE will be 50 times, 44 times and 39 times respectively, maintaining the "buy" rating.
Risk tips: raw material price fluctuation risk, covid-19 epidemic recurrence risk, and intensified industry competition risk.
