\u3000\u3 China Vanke Co.Ltd(000002) 891 Yantai China Pet Foods Co.Ltd(002891) )
The event company issued its annual report for 2021.
Q4’s revenue increased, and the gross profit margin of sales decreased slightly. In the past 21 years, the company’s operating revenue was 2.882 billion yuan, a year-on-year increase of + 29.06%, of which pet snacks, pet cans and pet dry food contributed 1.98 billion yuan, 475 million yuan and 306 million yuan respectively, a year-on-year increase of + 15.64%, + 52.97% and + 115.66%; The net profit attributable to the parent company was 116 million yuan, a year-on-year increase of – 14.29%; The net profit attributable to the parent company after deduction was 114 million yuan, a year-on-year increase of – 9.35%. The company’s comprehensive gross profit margin was 20.05%, with a year-on-year increase of -4.65pct; The expense rate during the period was 14.34%, with a year-on-year increase of -1.11pct; Among them, the significant increase in sales expenses is mainly due to the company’s strengthening of business promotion and publicity. In 2021q4, the company’s operating revenue was 869 million yuan, a year-on-year increase of + 41.92%; The net profit attributable to the parent company was 24 million yuan, a year-on-year increase of – 38.14%; The net profit attributable to the parent company after deducting non-profit was 27 million yuan, a year-on-year increase of – 22.45%; The gross profit margin of sales was 18.99%, with a year-on-year increase of -3.44pct; The expense rate during the period was 16.62%, with a year-on-year increase of + 2.68pct. Dividend plan: cash dividend of 0.5 yuan (including tax) for every 10 shares.
The proportion of dry food business increased, and the overseas income increased steadily. In the past 21 years, the scale of China’s pet food market was 128235 billion yuan, a year-on-year increase of + 20.6%; Among them, PET staple food and snacks accounted for 69.51% and 26.99%, with a year-on-year increase of + 3.88 PCT and -5.55 PCT. The PET staple food market increased by 15.009 billion yuan to 89.172 billion yuan, maintaining a significant growth trend. The company’s business involves outside China. In 21 years, the company’s overseas revenue accounted for 76.03%, maintaining steady growth; The gross profit margin was 18.11%, with a year-on-year increase of -3.88pct. In addition, the company actively explored the Chinese market and focused on the PET staple food business. In 21 years, the company’s pet canned and dry food business revenue accounted for 16.5% and 10.64%, with a year-on-year increase of + 2.58pct and + 4.28pct. However, subject to the rising cost and other constraints, the gross profit margins of canned pet and dry food were 24.61% and 18.9% respectively, with a year-on-year increase of -2.49pct and -14.41pct. In the next 22 years, the company will continue to focus on the Chinese market, independent brands and staple food products to improve its market share.
The company plans to issue convertible corporate bonds and increase the production capacity of more than 100000 tons of pet food. The company announced that it plans to issue convertible corporate bonds with a total amount of no more than 7690459 million yuan. The raised funds are mainly used for the expansion of pet food production capacity, mainly including the project with an annual output of 60000 tons of high-quality pet dry food, the project with an annual output of 40000 tons of new pet wet food, the project with an annual output of 2000 tons of freeze-dried pet food Plane warehouse intelligent three-dimensional transformation project and supplement working capital.
It is suggested that China’s pet industry maintain rapid growth, the company’s independent brand and China’s market development gradually make efforts, add to the steady growth of China’s staple grain production capacity, and make an increasingly significant contribution to future performance. At the same time, the company’s overseas business has advantages and maintains steady growth. We expect that the company’s EPS from 2022 to 2023 will be 0.62 and 0.78 yuan respectively, corresponding to 34 and 27 times of PE, maintaining the “recommended” rating.
