\u3000\u3 China Vanke Co.Ltd(000002) 891 Yantai China Pet Foods Co.Ltd(002891) )
Overseas market revenue continued to grow at a high rate, while China’s market revenue growth was under pressure in the short term, maintaining a “buy” rating
Yantai China Pet Foods Co.Ltd(002891) released the annual report of 2021. The annual revenue was 2.882 billion yuan (+ 29.06%), and the net profit attributable to the parent company was 116 million yuan (- 14.29%). On the cost side, the rising price of raw materials led to the decline of the company’s short-term gross profit. On the expense side, the proportion of the company’s management, finance and R & D expenses in revenue decreased year-on-year, and the sales expenses increased year-on-year. Based on the rising cost of raw materials and lower than expected consumption recovery, we lowered our forecast for 20222023 and added a new forecast for 2024. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 175 / 260 / 365 million yuan respectively (the predicted value before 20222023 is 239 / 399 million yuan), EPS will be 0.60/0.88/1.24 yuan respectively, and the corresponding PE of the current stock price will be 35.3/23.8/16.9 times respectively. The company continues to increase the layout of China’s pet grain market and maintain the “buy” rating.
The acquisition of pfnz in 2021 supported the company’s high growth rate of overseas revenue, and the growth rate of China’s dry food was bright
In terms of the company’s 2021 revenue by region, foreign countries and China achieved revenue of RMB 2.191691 billion respectively, with a year-on-year increase of 29.58% / 27.44% respectively; The proportion of revenue was 76.03% / 23.97% respectively, which remained stable year-on-year. In 2021, the company acquired pfnz, the largest pet canning foundry in New Zealand, which contributed to the growth of overseas revenue and better hedged the export pressure caused by the appreciation of people’s ratio. Foreign revenue continued the high growth trend. In terms of revenue and products, the company’s pet snacks, cans and staple food achieved revenue of 1.980/4.75/306 billion yuan respectively, with a year-on-year increase of 15.64% / 52.97% / 115.66% respectively, and the growth rate of dry food was bright; The proportion of revenue was 68.70% / 16.50% / 10.64% respectively.
In 2022, the company’s sales volume in China and abroad is expected to usher in double drive growth, and the elasticity of consumption recovery process can be expected
In terms of China business, the company’s 30000 ton new wet grain plant and 60000 ton dry grain plant in China were successively delivered and put into operation in 2021, and it is expected to usher in large-scale production in 2022; The company acquired a leading pet food company in Hangzhou, further enhancing the advantages of China’s staple food supply chain. In terms of foreign business, the RMB exchange rate is lower, and the pressure of exchange rate and export trade is weakened; Pfnz cannery in New Zealand is expected to further enhance the company’s overseas and imported sales of high-end cans.
The company issued a plan for convertible bonds and plans to continue to increase the layout of the Chinese market
The company has issued a plan for convertible bonds and plans to raise no more than 769 million yuan for the construction of 60000 tons of dry grain projects, 40000 tons of wet grain projects, 2000 tons of freeze-dried grain projects, warehouse transformation and liquidity supplement. The company continues to increase the layout of the whole category of China’s favorite grain, and it is expected that the company’s sales volume in China will usher in sustained and large-scale growth in the next 2-5 years.
Risk tips: Overseas epidemic recurrence, price fluctuation of raw materials (chicken breast meat), etc.
