\u3000\u3 Shengda Resources Co.Ltd(000603) 043 Guangzhou Restaurant Group Company Limited(603043) )
Core conclusion
Event: the company released its annual report for 2021. The annual revenue was 3.890 billion yuan / yoy + 18.33%, the net profit attributable to the parent was 558 million yuan / yoy + 20.28%, and the net profit not attributable to the parent was 526 million yuan / yoy + 16.69%.
The food business grew steadily and the catering business expanded against the trend. In 2021, the company’s food business achieved a revenue of 3.052 billion yuan / yoy + 13.22%, accounting for nearly 80% of the total revenue; Among them, the income of moon cake series / quick-frozen food was 1.521848 billion yuan respectively, yoy + 10.36% / + 9.40%, sales volume + 4.40% / + 8.49% year-on-year respectively, and unit price + 5.71% / + 0.84% year-on-year respectively, realizing the simultaneous rise of volume and price. The catering business expanded against the trend. In 2021, 7 brand stores of ” Guangzhou Restaurant Group Company Limited(603043) ,” taotaoju “and” Xingyue city “were opened and reopened, and 6 Haiyue taojumen stores were acquired (consolidated in the second half of the year); The annual catering business achieved a revenue of 725 million yuan / yoy + 48.32%.
The gross profit margin of moon cake series products decreased and the expenses were well controlled. In 2021, the company’s overall gross profit margin was 37.83% / -1.50pct, of which the gross profit margin of moon cake series / frozen food / catering business was 56.46% / 36.18% / 9.41% respectively, with a year-on-year increase of -1.91pct / + 0.74pct / + 3.97pct respectively. The decline in the gross profit margin of core product moon cake series lowered the overall gross profit margin. On the expense side, the company’s expense rate during 2021 is 20.45% / – 1.22pct, of which the sales expense rate / management expense rate is + 0.10pct / – 1.22pct respectively year-on-year.
Investment suggestions: looking ahead, on the one hand, capacity expansion supports the sustained and rapid growth of food business. The capacity of Meizhou quick-frozen food production base is expected to be released in 2022, and the phase II quick-frozen food construction project of Xiangtan base will continue to be promoted. On the other hand, the channels are deepened vertically and expanded horizontally, sinking the community consumption market in advantageous areas, and focusing on developing the East China market outside Guangdong Province. In addition, the company has increased its investment in prefabricated dishes, which is also worth looking forward to in the future. We expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 665 / 801 / 969 million respectively, EPS to be RMB 1.17/1.41/1.71 respectively, and the corresponding PE of the latest share price to be 18 / 15 / 12 times respectively, maintaining the “buy” rating of the company.
Risk tip: the epidemic prevention and control measures exceed expectations, food safety risks, and the risk of rising raw material prices.
