\u3000\u3 Shengda Resources Co.Ltd(000603) 317 Sichuan Teway Food Group Co.Ltd(603317) )
Event: Sichuan Teway Food Group Co.Ltd(603317) released the annual report of 2021, and achieved an operating revenue of 2.03 billion yuan in 21 years, a year-on-year increase of - 14.3%; The net profit attributable to the parent company was 180 million yuan, a year-on-year increase of - 49.3%. Among them, 21q4 achieved an operating revenue of 630 million yuan, a year-on-year increase of - 25.2%; The net profit attributable to the parent company was 100 million yuan, a year-on-year increase of + 136.8%.
The sales of the company's products and regions have declined, and the income from channels other than dealers has increased. Since 21q2, the business environment of the condiment industry has changed, and the rapid growth of community group purchase has led to the backlog of channel inventory and the decline of channel retail sales. In addition, the company's new products put on the market in 2020 are unsalable, and the goods on the market are older, which has affected the channel sales and consumer experience, resulting in the deviation of the company's performance from the guidelines at the beginning of 21 years. 1) In terms of revenue by product in the 21st year, hot pot seasoning / Chinese dish seasoning / sausage and bacon seasoning / chicken essence / spicy sauce / others achieved a revenue of 875 / 8.49 / 2.12 / 0.37 / 0.35/17 million yuan, a year-on-year increase of - 28.28% / - 10.42% / + 111.65% / - 21.92% / - 5.86% / + 36.90%. 2) In terms of sales channels, dealers / customized meal adjustment / e-commerce / direct business supermarket / foreign trade / others achieved a revenue of 1.566/2.53/1.57/0.23/0.23/02 billion yuan, a year-on-year increase of - 21.70% / + 55.89% / + 1.04% / + 14.35% / + 8.99% / - 56.88%. 3) In terms of regions, the Southwest / Central China / East China / Northwest / North China / Northeast / South China / export realized an operating revenue of 608 / 4.05 / 4.05 / 1.57 / 1.94 / 1.11 / 1.20 / 23 million yuan, a year-on-year increase of -11.05% / - 11.79% / - 12.75% / - 13.65% / - 21.13% / - 29.42% / - 19.79% / + 8.99%.
The gross profit margin of all categories and the overall gross profit margin decreased, and the proportion of employee compensation in the total cost increased. (1) The gross profit margin of the company was 32.31% in the 21st year, which significantly decreased compared with the gross profit level of 41.49% in the 20th year. At the same time, the gross profit margin of all categories decreased to a certain extent. (2) In terms of expenses, the sales / management expenses in 21 years were 394 / 110 million yuan respectively, with a year-on-year increase of - 16.84% / 7.51%. The salary level of the company's employees in 21 years increased. When the sales expenses decreased, the percentage of employee salary in the total sales expenses increased from 14.73% in 20 years to 24.38%. At the same time, the increase of management expenses also came from the salary increase. (3) Overall, the net profit margin of the company's sales in 21 years was 9.10%, a year-on-year increase of -6.3pcts.
The scale of hot pot seasoning in its main business was reduced, and the sales unit price increased slightly. The sales volume and output of the company's main business hot pot seasoning have been significantly reduced, of which the sales volume of hot pot seasoning in 21 years was 37000 tons, a year-on-year decrease of more than 30%; The output was 32000 tons, a year-on-year decrease of more than 45%. In terms of sales unit price, except for the decline in the price of Chinese dishes and seasonings, other products have increased by a small to medium margin.
Profit forecast, valuation and rating: considering that the terminal demand is still weak and the trend of intensified competition in the re adjustment industry continues, we lowered the net profit forecast of Sichuan Teway Food Group Co.Ltd(603317) 20222023 to 236 / 297 million yuan respectively (21.7% / 25.4% lower than the previous time respectively), introduced the 24-year net profit forecast to 356 million yuan, and the current share price corresponding to PE in 202224 is 55x / 43x / 36x respectively, Considering that the company's equity incentive plan is conducive to binding the core backbone interests and stimulating the enthusiasm of the team, we maintain the "overweight" rating.
Risk warning: the dynamic sales of the product is less than expected; Price fluctuation risk of raw materials; Food safety risks.
