\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 882 Shanghai Milkground Food Tech Co.Ltd(600882) )
Events
On the evening of March 29, 2022, the company released the performance forecast for the first quarter of 2022: the expected revenue is 1.15-1.35 billion yuan, an increase of 20.93% – 41.97% at the same time; The net profit attributable to the parent company was 55-75 million yuan, an increase of 71.72% – 134.16% at the same time.
Key investment points
The first quarter started well as scheduled, and the normal temperature cheese stick made a contribution
The company’s 2022q1 revenue was 1.15-1.35 billion yuan, an increase of 20.93% – 41.97% at the same time; The net profit attributable to the parent company was 55-75 million yuan, an increase of 71.72% – 134.16% at the same time. Among them, the revenue center in 2022q1 was 1.25 billion yuan, an increase of 31% at the same time; The net profit attributable to the parent company was 65 million yuan, an increase of 103% at the same time.
The profit growth continues to be faster than the revenue growth. We believe that there are the following reasons: 1) the company closely focuses on the four core strategies of “product leading, brand occupying, channel intensive cultivation and management upgrading”, continues to focus on product leading development, increases investment in brand construction, and constantly promotes channel expansion and deep cultivation; 2) Advertising expenses were in the fourth quarter of last year; 3) The upgrading of the product structure of the cheese sector also contributed to the new normal temperature cheese sticks and cheese slices.
Strengthen the leading brand of cheese
In 2022, the company will take four major measures to ensure the realization of its objectives: 1) further enrich the cheese product structure and create a cheese category leader. In terms of retail products, the company will focus on promoting the further rapid growth of cheese sticks, “making wide at room temperature and refined at low temperature”, forming a relay development in product categories. In the catering cheese series, the company will further strengthen the development and promotion of cheese slices, cream cheese, cream, butter and other products on the basis of the existing advantageous product mozzarella cheese, and constantly enrich the product portfolio. 2) Strengthen brand building and upgrade the mental positioning of consumers. 2022 is the first year of the second five-year plan, comprehensively shaping the brand image and value appeal of “choose Shanghai Milkground Food Tech Co.Ltd(600882) ” and building ” Shanghai Milkground Food Tech Co.Ltd(600882) ” into a nationally famous cheese brand familiar to consumers. 3) Continue to expand marketing network coverage and create channel advantages of the whole system. For offline retail channels, under the guidance of “expanding at room temperature and refining at low temperature”, the company will continue to promote the sinking and deep cultivation of channels, strengthen the coverage of outlets such as national and regional supermarkets, convenience stores and mother and child stores, and ensure the growth of the number of retail terminal outlets. For e-commerce channels, the company has continuously consolidated the foundation of tmall and jd.com e-commerce platforms, and further improved the multi platform coverage of the whole network. The company will also actively embrace new retail channels such as social platform, takeout home platform, large supermarket online shopping and timely arrival platform. 4) Continuously improve the management level and lay a solid foundation for sustainable development. The company will continue to promote the construction of “digital intelligence and smart technology”, build a smart supply chain platform, build a digital middle platform, build a digital chemical plant, realize office automation, etc.
Profit forecast
We are optimistic that the company will continue to focus on cheese sticks, strengthen the minds of consumers and build a cheese category leader. It is estimated that the EPS from 2022 to 2024 will be 0.8/1.26/1.85 yuan, and the current share price corresponding to PE will be 43 / 27 / 19 times respectively, maintaining the “recommended” investment rating.
Risk tips
Macroeconomic downside risks, the epidemic drag on consumption, the promotion of normal temperature cheese sticks is less than expected, the growth of cheese sector is less than expected, and the market competition is intensified.
