\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 298 Angel Yeast Co.Ltd(600298) )
Event: Angel Yeast Co.Ltd(600298) released the annual report for 2021. The annual operating revenue was 10.68 billion yuan, a year-on-year increase of + 19.5%, the net profit attributable to the parent company was 1.31 billion yuan, a year-on-year increase of – 4.6%, and the net profit attributable to the parent company after deduction of non capital was 1.06 billion yuan, a year-on-year increase of – 13.1%; Single Q4 achieved an operating revenue of 3.08 billion yuan, a year-on-year increase of + 22.9%, a net profit attributable to the parent of 290 million yuan, a year-on-year increase of – 19.1%, and a net profit attributable to the parent of 170 million yuan, a year-on-year decrease of – 38.4%.
The revenue target is achieved and the operation is improved quarter by quarter. In 2021, the revenue side of the company continued to grow rapidly, and the revenue side of 2021q4 continued to improve compared with Q3 under the contribution of price increase; In terms of products, the revenue of yeast and deep processed products / packaging / dairy products / sugar making in 2021 was + 15.1% / + 25.6% / + 35.0% / + 68.4% year-on-year respectively, and that in 2021q4 was + 7.9% / + 24.2% / + 11.3% / + 68.9% year-on-year respectively. The main business of yeast increased steadily; By region, China’s / foreign market revenue in 2021 was + 22.3% / + 12.0% year-on-year, and 2021q4 was + 21.5% / + 15.4% year-on-year.
The rising cost of raw and auxiliary materials has caused pressure on the profit of the whole year. The gross profit margin / gross sales difference in 2021 was 27.3% / 21.1% respectively, with a year-on-year increase of – 6.7 / – 5.7pct, mainly due to the increase of molasses and energy sea freight, with a period expense rate of 14.8% and a year-on-year increase of – 1.4pct, including a sales / management expense rate of 6.3% / 3.4%, a year-on-year increase of – 1.0 / – 0.1/pct, and a net profit rate of 12.3% and a year-on-year increase of – 3.1pct; In 2021q4, the gross profit margin / gross sales difference were 21.8% / 15.4% respectively, with a year-on-year increase of + 3.6 / – 6.2pct. The increase in gross profit margin was mainly due to the contribution of price increase. The cost rate during the period was 14.7%, with a year-on-year increase of + 9.9pct, of which the sales / management cost rate was 6.4% / 2.7%, with a year-on-year increase of + 9.7 / – 0.6pct. The large change in sales cost rate was mainly due to the confirmation of transportation expenses in the same period last year, with a net profit rate of 9.4%, with a year-on-year.
Price increase + cost control + capacity construction to ensure the achievement of the new year’s goal. The company plans to achieve a revenue target of 12.62 billion yuan in 2022, a year-on-year increase of + 18.2%, and a net profit target of 1.37 billion yuan attributable to the parent company, a year-on-year increase of + 4.9%. We believe that the price increase, cost control and market share increase are expected to ensure the achievement of the company’s annual target. 1) in 2021, the company will raise the prices of major products in China / abroad to cope with the cost pressure, and it is expected that the ton price will increase by double digits in 2022; 2) The company will stabilize the rising cost by building new molasses storage tanks and replacing molasses with hydrolyzed starch sugar; 3) The company has a solid leading position in China’s yeast industry. With the production capacity reaching the production capacity, it will promote the steady growth of the revenue side.
Investment advice. We adjusted the previous profit forecast according to the annual report and introduced the forecast for 2024. It is estimated that the operating revenue from 2022 to 2024 is RMB 12.65/146.1/16.78 billion (the value before 20222023 is RMB 11.98/13.88 billion), a year-on-year increase of + 18.5% / + 15.5% / + 14.8%, and the net profit attributable to the parent company is RMB 1.40/17.8/21.9 billion (the value before 20222023 is RMB 1.69/21.2 billion), a year-on-year increase of + 6% / + 27.6% / + 23.1%. The current stock price corresponds to pe26 / 20 / 16 times, maintaining the “buy” rating.
Risk tips: the promotion of production capacity is less than expected, the cost of raw materials is higher than expected, and food safety risks.
