\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 298 Angel Yeast Co.Ltd(600298) )
Event: the company released its 2021 annual report. In 2021, the company realized a revenue of 10.68 billion yuan, an increase of 19.5% at the same time; The net profit attributable to the parent company was 1.31 billion yuan, a decrease of 4.6%. Q4 achieved an income of 3.08 billion yuan, an increase of 22.9% and a net profit attributable to the parent company of 290 million yuan, a decrease of 19.1%. The company plans to pay a cash dividend of 5 yuan (including tax) for every 10 shares. The net cash flow from operating activities in 2021 is 1.32 billion yuan, a decrease of 29.4%.
The annual performance maintained a high growth, and the growth rate of sugar and dairy products business was bright. The company achieved a revenue of 10.68 billion yuan in 2021, an increase of 19.5% at the same time, and the annual revenue maintained a stable growth trend. In terms of products, yeast series, sugar making, packaging, dairy products and other products achieved revenue of RMB 7.98/10.6/4.2/0.6/1093 billion respectively, with a year-on-year increase of + 15.1% / + 68.4% / + 25.6% / + 35.0% / + 15.6%, all achieving double-digit growth, of which the growth of sugar making, packaging and dairy products business is bright; In terms of subregions, China achieved revenue of 7.78 billion yuan, an increase of 22.3%, and overseas revenue of 2.82 billion yuan, an increase of 12.0%. In terms of Q4 alone, the company achieved a revenue of 3.08 billion yuan, an increase of 22.9% at the same time, and the growth rate is higher than the annual level, which may be the embodiment of the price increase effect of Q3.
The upward pressure on costs led to pressure on the net interest rate and the expense rate remained stable. The company’s annual gross profit margin was 27.3%, a sharp decline of 6.66pcts, which may be caused by the transfer of transportation expenses from sales expenses to costs. In terms of expense rate, the company’s annual sales expense rate was 6.3%, down 0.97 PCTs, management expense rate was 3.4%, down 0.15 PCTs, financial expense rate was 0.7%, down 0.43 PCTs, and the three rates remained stable. Under the background of covid-19 epidemic and global inflation, the Chinese purchase price of raw material molasses continued to rise, and the company’s parent net profit margin fell 3.10pcts to 12.3%. In the fourth quarter alone, the company realized a net profit attributable to the parent company of 290 million yuan, a decrease of 19.1%, mainly due to the sharp rise in the cost of raw materials.
The price increase effect gradually appears, which is expected to support the steady growth of revenue in 2022. With the continuous rise of raw material costs, the company has adopted the strategy of actively raising prices. At the same time, it uses hydrolyzed sugar technology to alleviate the cost pressure, which is expected to gradually digest the cost pressure in the future. As the leader of yeast industry, the company has clear strategic planning, a number of production expansion plans have been steadily promoted, superimposed with active price increase and product structure optimization. It is expected that the company’s annual revenue is expected to maintain high growth in 2022.
Investment suggestion: we expect the revenue growth rate of the company from 2022 to 2024 to be 18.0% / 12.5% / 8.8%, the net profit growth rate to be 7.0% / 21.9% / 10.5% and the EPS to be 1.68/2.05/2.26 yuan respectively; The investment rating of overweight-a was given for the first time. The six-month target price was 46.8 yuan, equivalent to 28 times PE in 2022.
Risk tip: raw materials rise more than expected, business development outside China is less than expected, and exchange rate fluctuation risk.
