Gaishi food (836826)
Event: the company released its 2021 annual report and achieved a total operating revenue of 344 million yuan, a year-on-year increase of 57.29%; The net profit attributable to shareholders of listed companies was 428442 million yuan, a year-on-year increase of 60.85%.
The normalization of the epidemic has led to the growth of overseas revenue and the full flowering of new and old customers outside China: the company focuses on the R & D, production and sales of instant appetizers such as marine food and edible fungus food. It has become a leading brand of appetizers in China and a national key leading enterprise in agricultural industrialization. Its products involve algae, fungi, wild vegetables, fish seeds and sea delicacies; According to the processing method, it can be divided into seasoning ready to eat products, dry products, frozen products and salted products. The company’s performance increased significantly in 2021, which is related to the company’s active development of new customers and the expansion of business scale through deep mining of production capacity. From a regional perspective, foreign revenue increased by 76.56% year-on-year, mainly benefiting from the normalization of foreign epidemic, the recovery of catering market and the increase driven by new customers; China’s revenue increased by 39.10% year-on-year, mainly benefiting from the company’s expansion of new customers and new markets. In terms of gross profit margin, in the first half of the year, due to the rise of raw material prices of main products and the lag of sales price changes, the gross profit margin of various products of the company decreased to varying degrees; In the second half of the year, the increase of sales price made the gross profit margin of the company rise as a whole. Throughout the year, the gross profit margin of the company’s main business in 2021 was 21.65%, returning to the long-term average level.
It is proposed to invest in the intelligent manufacturing project of 15000 tons of prefabricated cold vegetables: the company recently issued the prospectus for issuing shares to specific objects in 2022 (Draft). Since the capacity utilization rate of fungus and vegetable products is close to full production in 2021, the capacity limit has restricted the growth of the company. The plan is to raise and invest in the “intelligent manufacturing construction project of 15000 tons of prefabricated cold dishes per year”, which is also the expansion of the previous fund-raising project “10000 tons of edible fungi and vegetable seasoned frozen food project”, and the implementation location of the project has been changed to Huai’an City, Jiangsu Province. The construction of the project has begun. Taking Jiangsu as the production base of prefabricated cold dishes can increase the radiation of the company’s products to Shandong, Jiangsu, Anhui, Shanghai, Zhejiang and other East China regions. The prefabricated dish Market in these regions is also a large-scale regional market in China.
Grasp the development opportunities of catering chain enterprises and combine key customer binding and new customer expansion: ncbd data shows that China’s Prefabricated vegetable industry has entered a period of rapid growth and has great market development potential. In 2020, the market scale of China’s Prefabricated vegetables industry was about 252.7 billion yuan, with a compound growth rate of 31.2% from 2015 to 2020. It is estimated that the market scale of China’s Prefabricated vegetables will exceed 830 billion yuan in 2025. In terms of old customers, the company’s main customers include Haidilao, Fu Jian Anjoy Foods Co.Ltd(603345) , Japan Jianzhen Food Co., Ltd. under the advantages of location, raw material sources and industrial agglomeration effect, the company has expanded its cooperation to the exhibition of meat and protein cold dishes. With the gradual establishment of the sales center with Shanghai company as the core, the company continues to make efforts in expanding new customers. At the same time, the company also increased investment in online new media such as e-commerce, short video and live broadcast.
Investment suggestion: with the increasing supervision of food safety in the catering industry and the increasing concentration of food processing industry, Gaishi food, as the leader in the sub field of appetizer cold dishes, has advantages in brand, market, quality control, R & D, capital and management. In the future, with the gradual production of 15000 tons of prefabricated cold dishes per year, it will further cover economically developed regions such as East China and South China, After completion, the revenue will further increase. As of the latest, the total market value of the company is 1.3 billion, corresponding to PE (TTM) 29.5x. It is suggested to continue to pay attention to the fixed growth process and long-term development of the company.
Risk tips: quality control risk, increased market competition risk, epidemic affecting the company’s operation risk
