\u3000\u3 Shengda Resources Co.Ltd(000603) 317 Sichuan Teway Food Group Co.Ltd(603317) )
Events
On the evening of March 30, 2022, the company released its 2021 annual report: in 2021, the company realized a revenue of RMB 2.026 billion (year-on-year – 14.34%), a net profit attributable to the parent company of RMB 185 million (year-on-year – 49.38%), and a net profit not attributable to the parent company of RMB 122 million (year-on-year – 60.53%); In 2021q4, the revenue was 628 million yuan (year-on-year – 25.22%), the net profit attributable to the parent was 104 million yuan (year-on-year + 136.78%), and the net profit not attributable to the parent was 58 million yuan (year-on-year + 347.78%).
In the fourth quarter, the revenue improved month on month, and the net profit increased significantly
The downward trend of 2021q4 revenue has improved month on month, and the net profit has achieved a higher growth year-on-year. It is expected that it is mainly due to the reduction of sales expense investment and the low base in the same period of 2020. In 2021, the company’s gross profit margin was 32.22%, year-on-year -9.27pct, and in 2021q4, the gross profit margin was 28.12%, year-on-year -10.69pct, mainly due to the rise of raw material costs. In 2021, the ratio of sales expenses / administrative expenses / financial expenses was 19.47% / 6.72% / – 1.71%, with a year-on-year increase of -0.58 / + 1.11 / – 1.07pct; 2021q4 sales expenses / administrative expenses / financial expenses were -17.96 / + 2.10 / – 0.10pct year-on-year respectively.
The decline is mainly due to the reduction of advertising cost and the strengthening of sales control; The increase of management fee rate is mainly due to the increase of equity incentive fee and employee salary; The decline in financial expense rate is due to the increase in interest income. The net interest rate in 2021 was 9.10%, year-on-year -6.30pct, of which the net interest rate in 2021q4 was 16.61%, year-on-year + 11.36pct, mainly due to the reduction of publicity expenses.
The customized catering channels have increased significantly, and the winter tune has achieved rapid growth
In terms of products, the revenue of hot pot seasoning / Chinese dishes / sausage bacon / chicken essence / spicy sauce was 875 / 8.49 / 212 / 0.36 / 0.36 billion yuan, with a year-on-year revenue of – 28.28% / – 10.42% / + 111.65% / – 21.92% / – 5.86%, of which 2021q4 was – 41.46% / – 32.17% / + 50.50% / – 16.29% / – 9.43%. The increase of sausage and bacon seasoning is mainly due to the high price of pork in 2020, the base number of sausage and bacon seasoning affected is low, the price of pork falls in 2021, and the demand for sausage and bacon increases.
In terms of component price, the total sales volume in 2021 was 94976 tons, with a year-on-year increase of – 11.08%, and the corresponding ton price was 21310 yuan / ton, with a year-on-year increase of – 3.70%. The sales of hot pot seasoning / Chinese dishes / sausage bacon / chicken essence / spicy sauce were 37040 / 43216 / 8553 / 1980 / 2417 tons, with a year-on-year increase of – 31.21% / + 1.67% / + 102.63% / – 37.12% / – 3.13%, and the ton price was 23628 / 19647 / 24730 / 18027 / 14547 yuan / ton, with a year-on-year increase of + 4.27% / – 11.89% / + 4.45% / + 24.17% / – 2.82%. The average price and sales volume decreased slightly.
In terms of regions, the Southwest / Central China / East China / Northwest / North China / Northeast / South China / export achieved a revenue of 608 / 4.05 / 4.05 / 1.57 / 1.94 / 1.11 / 1.19 / 23 million yuan, a year-on-year increase of -11.05% / – 11.79% / – 12.75% / – 13.65% / – 21.13% / – 29.42% / – 19.79% / + 8.99%. Among them, 2021q4 is – 15.88% / + 0.71% / – 74.74% / – 45.92% / – 14.81% / – 14.91% / – 31.22% / + 28.48% year-on-year.
In terms of sales channels, the revenue of dealers / customized meal adjustment / e-commerce / direct business supermarket / foreign trade was RMB 1.566/2.53/1.57/0.23/0.23 billion, a year-on-year increase of – 21.70% / + 55.89% / + 1.04% / + 14.35% / + 8.99%. 2021q4 was – 33.81% / + 5.72% / + 15.62% / + 135.07% / + 10.45% year-on-year respectively. The revenue of dealers declined, and customized catering achieved rapid growth. In 2021, there was a net increase of 408 to 3409 dealers.
Products and channels work together and are expected to achieve high growth in 2022
In 2022, the company plans to increase its operating revenue by no less than 15% year-on-year and net profit by no less than 30%. The layout is mainly from the following aspects:
1) products: continue to supplement the Dahongpao product line. The price increase of some products in October will help to release the profit elasticity in 2022.
2) in terms of channels: haorenjia brand focuses on the C-end, Dahongpao brand expands the small b-end business on the basis of the C-end business, customized meal tune focuses on the large b-end business, and the new retail business has become an important engine of performance growth.
Profit forecast
Looking forward to the future, we believe that the compound condiment industry has broad space and rapid development, and is expected to maintain double-digit growth. As the leading enterprise in the compound condiment industry, the company is expected to fully mobilize the enthusiasm of employees under equity incentive, and is expected to achieve rapid growth in 2022 under a low base. We expect EPS to be 0.32/0.41/0.52 yuan from 2022 to 2024, and the current share price corresponding to PE is 56, 44 and 34 times respectively, maintaining the “recommended” investment rating.
Risk tips
Macroeconomic downside risks, consumption dragged down by the epidemic, intensified industrial competition, less than expected regional expansion, less than expected capacity construction or utilization, less than expected price increase, etc.
