\u3000\u3 Shengda Resources Co.Ltd(000603) 896 Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) )
Performance express: in 2022, Q1 company achieved revenue of 200 million yuan, a year-on-year increase of 17%, net profit attributable to parent company of 57.79 million yuan, a year-on-year increase of 40.2%, net profit excluding non attributable to parent company of 52.12 million yuan, a year-on-year increase of 45.7%, and Q1 profit side performance growth exceeded market expectations.
Revenue side: maintain steady growth. During the 2022q1 Spring Festival, some areas in Hangzhou still maintained rapid growth under the influence of the epidemic, mainly because the company's products Ganoderma lucidum spore powder series and Dendrobium candidum series have the function of enhancing immunity, and the number of consumers with health care needs has increased. At the same time, the expansion outside the province gradually contributes to the increment, and the franchisees outside the province contribute 5-6 million yuan in 2022q1.
Profit side: gross profit increased and expenses decreased. From the profit side, the growth rate of the profit side is faster than that of the income side. We expect there are two main reasons: first, the company vigorously promotes the high-end product tablet Ganoderma lucidum spore powder, and the proportion has increased, resulting in the improvement of the gross profit side; Second, the cost side was significantly reduced. Due to the group purchase of key customers in the first quarter, the sales cost was less, and the management cost was reduced by several million equity incentive costs year-on-year, resulting in a decrease in management cost.
Channel side: orderly promotion of expansion outside the province. At the end of 2021, the company vigorously explored channels outside the province by opening up new franchisees (Urban agents). By 2022q1, the company has reached 14 franchisees outside the province, and 4 new franchisees have been added in Q1 to achieve rapid expansion. It is expected that 30 urban agents will be added in 2022, and the market revenue outside the province will increase rapidly. The annual average contribution of each company is expected to be RMB 3-6 million. The market outside the province focuses on the promotion of high-end new dosage form spore powder tablets. The annual consumption cost of tablets is 34 Shantui Construction Machinery Co.Ltd(000680) 00 yuan, and that of powder and granules is 1900039000 yuan respectively according to the consumption situation. It is expected to further improve the product structure and increase the gross profit margin.
The second phase of convertible bonds will be publicly issued for capacity expansion. The total amount of funds raised from this public offering of convertible bonds does not exceed 398 million yuan. After deducting the issuance expenses, the funds raised are intended to be used for the construction of phase II health food project of Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) Health Industrial Park and the construction of R & D and testing center of Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) Health Industrial Park. After the completion of the project, an annual production capacity of 20 tons of health food tablets and capsules will be formed, providing sufficient capacity for expansion outside the province. After the completion of the project, the annual new sales revenue will be 338.97 million yuan and the annual net profit will be 75.72 million yuan. The completion and operation of the project will help to cultivate new profit growth points of the company and bring significant economic benefits to the company.
Profit forecast and investment suggestions. It is expected to be 36.81 times and 27.2 times that of PE in 202420221, respectively. Considering the performance increment brought by the company's expansion outside the province, the compound growth rate from 2022 to 2024 is 28.5%, so it is recommended to pay attention.
Risk tip: the price and output of raw materials fluctuate sharply, and the expansion outside the province is less than expected.
