\u3000\u3 China Vanke Co.Ltd(000002) 891 Yantai China Pet Foods Co.Ltd(002891) )
Event:
Yantai China Pet Foods Co.Ltd(002891) released the annual report for 2021: the total operating revenue was 2.882 billion yuan, an increase of 29.06% year-on-year, and the net profit attributable to the parent company was 116 million yuan, a decrease of 14.29% year-on-year.
Key investment points:
Sales revenue increased steadily and performance declined in the short term. During the reporting period, the company achieved a total operating income of 2.882 billion yuan (year-on-year + 29.06%) and a net profit attributable to the parent company of 116 million yuan (year-on-year - 14.29%). Among them, Q4 single quarter revenue was 869 million yuan (year-on-year + 41.92%), and the net profit attributable to the parent company was 239051 million yuan (year-on-year - 38.41%). In terms of interest rate changes, during the reporting period, the company's gross profit margin on sales was 20.05% (a decrease of 4.65 PCTs compared with the same period last year), and the company's net profit margin on sales was 4.39% (a decrease of 2.39 PCTs compared with the same period last year); From the perspective of expense change, during the reporting period, the company's sales expense was 243 million yuan (year-on-year + 31.89%), management expense was 105 million yuan (year-on-year + 17.19%), and financial expense was 241399 million yuan (year-on-year - 33.97%). The sales expense increased rapidly or because the new brand had to invest higher advertising expenses.
Improve the product matrix and keep the brand strong. In the Chinese market, the company has its own brand matrix with "wanpy naughty" and "zeal Zhenzhi" as the core, including "HAPPY100", "kingkitty" and other brands, and has won high product popularity in the industry with excellent product quality and after-sales service. The company's own brand "wanpy naughty" has been rated as "Shandong famous trademark", "most popular pet brand", "Shandong international famous brand" and "Gold Brand Award". In the international market, pet snack products with independent brands such as "wanpy", "great Jack's", "jerkytime" and "toptrees" have been successively launched in Japan, the United States, Europe, Australia, Canada and other countries. Relying on the company's whole industry chain and stable product quality, the company's export business has grown steadily, and with the gradual expansion of the company's sales scale, the brand influence has gradually appeared.
Profit forecast and investment rating have dragged down the gradual end of the epidemic. Pet consumption is expected to resume its growth trend and its profitability continues to improve. It is estimated that the net profit attributable to the parent company in 20222024 will be 153 / 2.8 / 483 million yuan and PE will be 40.35/22.06/12.8 yuan / share respectively, maintaining the "buy" rating.
The risk indicates the risk that China's market development does not meet expectations; The risk that the production capacity is less than expected; Risk of price fluctuation of raw materials; The risk that the recovery of the epidemic is less than expected and affects consumption; Risks of pet food safety problems; Core customers account for relatively large risks; The risk of brand building falling short of expectations.
