\u3000\u3 China Vanke Co.Ltd(000002) 847 Yanker Shop Food Co.Ltd(002847) )
Event overview
The company released an annual report, and achieved an operating revenue of 2.282 billion yuan in 2021, a year-on-year increase of + 16.47%; The net profit attributable to the parent company was 151 million yuan, a year-on-year increase of - 37.65%; EPS1. 21 yuan. 21q4 achieved an operating revenue of 654 million yuan, a year-on-year increase of + 24.65%; The net profit attributable to the parent company was 73 million yuan, a year-on-year increase of + 37.90%.
Q4 business improvement, transformation and upgrading have achieved initial results
In terms of Q4 revenue, the company achieved a revenue of 654 million yuan, a year-on-year increase of 24.7%, the growth rate improved significantly month on month, and also achieved a high growth year-on-year; On the profit side, the net profit attributable to the parent company of Q4 increased by 37.9% year-on-year, and the net interest rate in a single quarter rebounded to 11.2%. The improvement of operation month on month is mainly due to the focus on core brands after the transformation and upgrading of the company, the promotion of omni-channel coverage on the channel side, the more reasonable investment on the expense side and the reduction of equity incentive expenses on the same basis.
Focus on five core categories and deepen the reform of channels
Faced with the impact of the epidemic, the decline in the flow of people from supermarkets and community group buying in the past 21 years, the company actively adjusted and responded, and the revenue side achieved an increase of 16.47%. In terms of categories, the income of leisure baked snacks / leisure deep-sea snacks / leisure fish products / dried fruits / dried beans / leisure vegetarian / candied fried goods / other categories in the past 21 years was + 10.77% / + 37.23% / + 22.51% / + 37.23% / + 4.98% / + 42.06% / - 17.37% / - 14.35% respectively year-on-year, of which the income of deep-sea snacks increased by 37% in the past 21 years, and the baking products exceeded 750 million yuan. In terms of channels, the revenue of direct sales / distribution / e-commerce in 21 years was RMB 659 million / 1483 million / 139 million respectively, with a year-on-year increase of + 4.59% / + 21.67% / + 27.08% respectively, and the proportion of distribution channels increased to 65.02%, with increasing importance. In terms of subregions, the revenue of central China (including Jiangxi) / South China / East China / Southwest (North) / North China (East) was + 19.67% / + 17.05% / + 9.78% / + 18.96% / - 0.48% respectively year-on-year. The base area of central China continued to maintain strong growth and gradually promoted the nationwide layout.
During the adjustment period, the profit side was under pressure, and Q4 got out of the low profit
The gross profit margin and net profit margin of the company in 21 years are 35.71% and 6.77% respectively, which are -8.12 and -5.59pct respectively compared with the same period last year. The profit side is under pressure due to the operation adjustment in 21 years, and the decline of gross profit margin is the core factor affecting the profit margin. The company's gross profit margin decreased more, mainly due to 1) the price of raw materials such as palm oil and packaging materials increased more, and the pressure on the cost side was greater; 2) Logistics expenses are adjusted to operating costs. From the expense side, the company's sales / management / R & D / financial expense ratio was 22.15% / 5.21% / 2.42% / 0.92% respectively, with a year-on-year increase of -1.91 / + 0.31 / - 0.21 / + 0.62pct respectively. The decrease of sales expense ratio was mainly due to accounting adjustment, and the increase of management expense was mainly due to the increase of daily management expense caused by the transformation and upgrading of the company. On the whole, the operation and management of the company faced a great impact in the past 21 years, resulting in a year-on-year decrease in profit margin of 5.6pct and a year-on-year decrease in net profit attributable to the parent company of 37.65%. However, with the gradual adjustment in place, Q4 operation has improved significantly and is expected to continue the improvement momentum and get out of the low profit.
Adjust and Reform in time in 21 years and start again in 22 years
After 21 years of pain, the company made timely adjustments and made comprehensive adjustments from the dimensions of organization, incentive, products, channels and supply chain. We are still optimistic that the company will continue to get out of the low profit, return to the growth path and realize transformation and upgrading.
On the product side, the company readjusted its product matrix, streamlined SKU, focused on five categories of deep-sea snacks, spicy brine, short-term baking, potato and dried fruit, and created four brands. The category focus will help to improve the scale effect and give full play to the cost advantage. The adjusted product portfolio will help to improve the single island effect and brand influence, and further give full play to the advantages of independent manufacturing of multi category leisure snacks of the company.
The channel side company actively adjusted and re divided into several business divisions, such as salty flavor business division, baking business division, quantitative packaging business division and circulation business division. Each has its own focus and works together. In the past 22 years, the salty flavor division promoted standardized display and accelerated the increase of the number of outlets; The baking business department will add 10000 counters and develop 35000 outlets in 22 years; Quantitative installation focuses on 16 core provinces and cities, covering 100000 terminals; Circulation channels continue to expand the market, and chain snack channels such as "wife, lock flavor and love snacks" are expected to contribute to the increment. The company has completed the channel adjustment in 21 years, and will make full efforts in 22 years to deepen the channel construction, promote the channel sinking, give play to the respective advantages of loose weighing and quantitative, and continuously improve the terminal layout of Yanjin.
At the organizational level, the company introduced experienced talents such as president Zhang Xiaosan from outside in the second half of last year. President Zhang Xiaosan also quickly helped the company sort out the quantitative loading channel with the help of his own experience. At the same time, the company adjusted the equity incentive plan this year, focusing on encouraging the core middle and senior management, which helps to improve the internal enthusiasm from top to bottom and realize the development and strategic implementation of the company.
Investment advice
Referring to the latest annual report, we maintained the company's revenue of 2.785/3.390 billion yuan in 22-23 years, increased 24-year revenue of 3.976 billion yuan, and adjusted 22-23 years' eps2 The forecast of 47 / 3.28 yuan will reach 2.46/3.41 yuan, adding 24-year eps4 34 yuan, corresponding to the closing price of 61.48 yuan / share on April 1, 2022. PE is 25 / 18 / 14 times respectively, maintaining the "buy" rating.
Risk tips
Rising raw material prices, less than expected channel expansion and food safety.
