\u3000\u3 Shengda Resources Co.Ltd(000603) 896 Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) )
Event: in 2021, the company realized an operating revenue of 770 million yuan (+ 20.6%), an operating profit of 210 million yuan (+ 29.86%), a net profit attributable to the parent company of 200 million yuan (+ 31.51%), and a net profit not attributable to the parent company of 200 million yuan (+ 45.2%). Overall, the performance met expectations and achieved steady growth. At the same time, the company announced the profit distribution plan, distributed a cash dividend of 0.405 yuan per share, and increased 3 shares per 10 shares by converting capital reserve into share capital.
Product side: core products achieve rapid growth. The operating revenue of Ganoderma lucidum spore powder products was 540 million yuan (+ 18.2%), with a gross profit margin of 88.2%, which remained stable, accounting for 70.5% of the total revenue; The operating revenue of Dendrobium candidum products was 120 million yuan (+ 21%), the gross profit margin was 77.5%, and the gross profit margin increased by 1.6pp, accounting for 16.2% of the total revenue.
Channel expansion outside the province: rapid and orderly channel expansion. The channels inside the province are 63.5%, the channels outside the province are 12.2%, and the Internet accounts for 24.4%. With the popularity of tmall’s online flagship stores rising to 24.1% in 2021, tmall’s online flagship stores and other official channels accounted for 24.1%. At the end of 2021, the company vigorously explored channels outside the province. By opening up new franchisees (Urban agents), the main development areas are Beijing, Shanghai, Guangzhou and Jiangsu. The market outside the province focuses on promoting high-end new dosage form spore powder tablets. The annual taking cost of tablets is 34 Shantui Construction Machinery Co.Ltd(000680) 00 yuan, and that of powder and granules is 1900039000 yuan respectively according to the taking situation. Dealers will give greater discounts. It is estimated that 30 urban agents will be added in 2022, and the market revenue outside the province will increase rapidly.
Launch the public issuance of convertible bonds for capacity expansion. The total amount of funds raised from this public offering of convertible bonds does not exceed 398 million yuan. After deducting the issuance expenses, the funds raised are intended to be used for the construction of phase II health food project of Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) Health Industrial Park and the construction of R & D and testing center of Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) Health Industrial Park.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 1.64 yuan, 2.15 yuan and 2.79 yuan respectively, corresponding to 35 times, 27 times and 21 times of PE. Considering the performance increment brought by the company’s expansion outside the province, the compound growth rate from 2022 to 2024 will be 28.5%. It is recommended to pay attention.
Risk tip: the price and output of raw materials fluctuate sharply, and the expansion outside the province is less than expected.
