\u3000\u3 Shengda Resources Co.Ltd(000603) 043 Guangzhou Restaurant Group Company Limited(603043) )
Event comments
The company released the financial report for 2021, and achieved a revenue of 3.889 billion yuan (+ 18.33%) during the period; Net profit attributable to parent company is 557 million yuan (+ 20.28%), net profit not attributable to parent company is 526 million yuan (+ 16.69%), eps0.1% 98 yuan. Q1 / Q2 / Q3 / Q4 achieved revenue of 670 million yuan / 562 million yuan / 1784 million yuan / 874 million yuan respectively, with a year-on-year increase of 28.73% / 32.96% / 10.15% / 20.58%; The net profit attributable to the parent company was 47 million yuan / – 10 million yuan / 406 million yuan / 113 million yuan, with a year-on-year increase of 289.64% / – 113548% / 16.68% / 9.5%.
Food manufacturing business continues to optimize sales channels. During the year, the company achieved a revenue of 3.89 billion yuan (+ 18.33%), an increase of 9.81 PCT over the previous year. Its food manufacturing business revenue was 3.052 billion yuan (+ 13.22%), accounting for nearly 80% of the company’s revenue. Moon cake series products are still the core of income, with an increase of more than 10% on the high base of the coincidence of the Mid Autumn Festival National Day holiday last year. Quick frozen products have maintained normal growth in the post epidemic era, accounting for 22% of income. Affected by the epidemic, the catering business increased amid fluctuations. During the period, the revenue of catering business was 725 million yuan (+ 48.32%), 7 new stores of various brands were opened against the trend, and 6 Haiyue taojumen stores were acquired. The performance of relevant stores was incorporated into the consolidated statement since 2021q3, rapidly improving the performance of taotaoju.
The Q2 epidemic in Guangzhou and Shenzhen dragged down the gross profit margin by 1.5pct to 37.83%, and the overall cost rate was 21.84% (+ 2.53pct). The sales expense rate is 9.33% (+ 0.1pct), the management expense rate is 9.75% (- 0.85pct), the R & D expense rate is 1.99% (- 0.36pct), and the financial expense rate is – 0.62% (- 0.1pct). Non equity investment is the investment of 102 million yuan in Meizhou production base during the period, and 253 million yuan has been invested in total at present; Xiangtan production base has invested 64 million yuan and has invested 322 million yuan.
Investment suggestion: as the production base continues to be put into operation and the capacity bottleneck is gradually solved, the food business will continue to thicken the company’s performance and smooth the systemic risks of the catering industry. We expect the company’s EPS from 2022 to 2024 to be 1.12 1.36 1.63 respectively, corresponding to the company’s closing price of 21.12 yuan on March 30, and PE from 2022 to 2024 to be 18.9 15.5 13 respectively, maintaining the “overweight” rating.
There are risks
Risk of rising prices of food raw materials; Risk of reduction of major shareholders; Risk of the impact of the epidemic on the catering industry.
