\u3000\u3 China Vanke Co.Ltd(000002) 507 Chongqing Fuling Zhacai Group Co.Ltd(002507) )
The company’s performance is basically in line with expectations
According to the annual report of 2021 released by the company, the company achieved an operating revenue of 2.519 billion yuan in 2021, with a year-on-year increase of 10.82%; The net profit attributable to the parent company was 742 million yuan, a year-on-year decrease of 4.52%; The net profit attributable to the parent company after non deduction was 694 million yuan, a year-on-year decrease of 8.49%; EPS is 0.87 yuan. Among them, 2021q4 achieved an operating revenue of 563 million yuan, a year-on-year increase of 18.74%; The net profit attributable to the parent company was 238 million yuan, a year-on-year increase of 45.75%, and the performance was basically in line with expectations. The company plans to distribute a cash dividend of 3.5 yuan to all shareholders for every 10 shares, and does not use the accumulation fund to increase the share capital.
Product price increase to stabilize business performance
From the perspective of revenue composition, mustard / radish / pickle accounted for 88.39% / 6.31% / 2.74% of the operating revenue respectively, and the operating revenue of mustard / radish / pickle changed by 12.71% / 3.25% / – 31.00% year-on-year. Mustard is still the company’s main product, and the revenue proportion of mustard continues to increase, or it is related to the company’s continued brand launch and focused categories during the year. From the regional situation, the operating revenue of the main market in South China increased by 15.15% year-on-year, and the operating revenue of East China increased significantly. During the reporting period, the sinking of the company’s channel construction continued, with 382 new dealers. From the perspective of volume and price, the sales volume of pickled mustard / radish / pickle increased by – 1% / – 36% / 10% year-on-year, and the ton price increased by 13.38% / – 5.77% / 8.00% year-on-year, mainly because the company raised the price of some products according to the increase of cost and product upgrading during the year.
Rising costs dragged down overall profitability
In 2021, the company’s overall gross profit margin was 52.33%, a year-on-year decrease of 5.90 percentage points, mainly due to the rise in the price of raw materials, green vegetable head and semi-finished mustard. In addition, due to the adjustment of accounting standards, the adjustment of transportation expenses is included in the cost of main business. The net interest rate of the company was 29.46%, a year-on-year decrease of 4.73 percentage points, mainly due to the rise of costs and the increase of marketing expenses.
Investment advice
In the short term, we believe that the company is sure to benefit from product price increases, lower costs and slower cost investment, and is expected to usher in performance release during the year. In the medium and long term, with the continuous sinking of the company’s channels, the continuous release of production capacity and the continuous expansion of categories, the company’s development is expected to reach a higher level. To sum up, we expect the company’s earnings per share in 202224 to be 1.14/1.29/1.46 yuan respectively, and still give the company an investment rating of “overweight”
Risk tips
The macro economy continued to decline; The impact of the epidemic exceeded expectations; Food safety issues
