\u3000\u3 Shengda Resources Co.Ltd(000603) 043 Guangzhou Restaurant Group Company Limited(603043) )
Core conclusion
Capacity + channel expansion drives the rapid growth of food business. On the one hand, the expansion of production capacity supports the sustained and rapid growth of food business. Meizhou quick-frozen food production base has been put into trial production in 21q3, and the production capacity in 22 years is expected to accelerate the release; Xiangtan base phase II quick-frozen food construction project continued to promote, laying a production capacity foundation for the future growth of quick-frozen food. On the other hand, offline channels are deepened vertically and expanded horizontally, and online channels are continuously strengthened, bringing new market increment. The company accelerated the layout of retail stores around large communities, commercial streets and major transportation hubs in Guangdong Province, and seized the community consumer market; Outside the province, the number of dealers increased to 395 (excluding overseas) at the end of the 21st century, focusing on investing resources to develop the East China market; Optimize the combination of resources on the online marketing platform.
Explore a new round of national layout of catering business. In the 21st year, the company bucked the trend and opened and reopened a total of 7 catering brand stores, and completed the acquisition of 6 Haiyue taojumen stores; By the end of the 21st century, 21 / 8 / 2 / 1 brand stores of Guangzhou Restaurant Group Company Limited(603043) , taotaoju, xingyuecheng and Weilai restaurants were directly operated by the company, and 22 taotaoju franchised stores were authorized to be operated by a third party. In the future, the company will orderly promote the layout of “taotaoju” and other catering stores in key cities outside Guangzhou in East China, central China and Dawan District, and promote the catering business to gradually move towards the whole country; At the same time, we will continue to renovate some old stores, upgrade stores through the system, improve consumers’ dining experience and continuously improve the brand image.
The development prospect of new business is worth looking forward to. There is a vast market space for prefabricated vegetables. According to ncbd data, the market scale of prefabricated vegetables in China may reach 313.6 billion yuan / + 24% in 21 years (of which the C-end accounts for 20% and the b-end accounts for 80%). The company actively explores the prefabricated vegetable business and superimposes the “ten measures to accelerate the high-quality development of Guangdong prefabricated vegetable industry” recently released by Guangdong Province. The accelerated development of the prefabricated vegetable business is worth looking forward to.
Investment suggestion: the company is a time-honored Chinese enterprise with the coordinated development of “food + catering” dual main industries. It has maintained a steady growth trend in the past few years, achieved contrarian growth under the epidemic situation, and showed strong business resilience. It is estimated that the company’s EPS in 22-24 years will be 1.16/1.38/1.70 yuan respectively, and the corresponding PE of the latest share price will be 19 / 16 / 13 times respectively, maintaining the company’s “buy” rating.
Risk tip: the duration of the epidemic exceeds expectations, food safety risks, and the risk of rising raw material prices.
