\u3000\u30 Fawer Automotive Parts Limited Company(000030) Fawer Automotive Parts Limited Company(000030) 00)
Events
On the evening of March 17, 2022, the company released its annual report for 2021: in 2021, the operating revenue was RMB 1.111 billion, a year-on-year increase of 22.21%, and the net profit attributable to the parent company was RMB 85 million, a year-on-year decrease of 17.76%. In addition, the company held the 2021 annual online performance presentation on panorama at 3-5 p.m. on April 7, 2022.
Key investment points
The fourth quarter accelerated month on month, and a variety of factors affected the gross profit margin
The company successfully completed the target of no less than 20% revenue growth in 2021 in the equity incentive plan in April 2021. The goal in 2022 is to increase revenue by no less than 20%. Among them, the revenue of 2021q4 was 360 million yuan, an increase of 67.8%; The net profit attributable to the parent company was 21 million yuan, an increase of 12.3% at the same time. In the fourth quarter, the growth rate of revenue was 16%, – 4%, 15% and 68% respectively, and the growth rate of net profit attributable to the parent company was – 18%, – 48%, 10% and 12% respectively.
The company’s gross profit margin in 2021 was 26.83% (- 0.34pct), of which 2021q4 was 27.49% (+ 10PCT), which was caused by the rise of raw materials and the impact of product structure; The net interest rate is 7.55% (- 5pct) in 2021, of which 2021q4 is 5.63% (- 3PCT). In 2021, the sales expense was 128 million yuan (34% increase at the same time), which was caused by the increase of investment in talent introduction, sales promotion, product mobilization, display and other expenses; Among them, the brand promotion fee increased by 24.21% in 2021, which is due to the increase of elevator and bus media advertising investment in 2021; The promotion service fee of e-commerce platform increased by 305.71% at the same time, which was caused by the increase of commission service fee for hiring anchor and the promotion service fee of e-commerce platform of JD self support and tmall supermarket. The management fee was 67 million yuan (with an increase of 16%), which was due to the increase of share based payment and refrigeration expenses.
The momentum of large packaging is good, and the performance of central China is bright
In terms of models, in 2021, the sales revenue of the distribution model was 973 million yuan (with an increase of 14.5%) and the gross profit margin was 26.3% (with a decrease of 0.1pct); The revenue of direct operation mode is 138 million yuan (with an increase of 133%) and the gross profit margin is 30.6% (with a decrease of 7.6pct). From the perspective of different channels, the online revenue in 2021 was 208 million yuan (with an increase of 23%) and the gross profit margin was 26.69% (with an increase of 1.3cpt); The offline revenue was 903 million yuan (with an increase of 22%) and the gross profit margin was 26.9% (with a decrease of 0.7pct).
In terms of products, in 2021, the revenue of fish products was 822 million yuan (with an increase of 16%) and the gross profit margin was 28.6% (with an increase of 1.6pct); The revenue of soybean products was 143 million yuan (up 14.4% at the same time) and the gross profit margin was 23.6% (down 4pct at the same time), which was due to the rise in the price of raw soybeans and the fact that the gross profit margin of newly added short-term guaranteed dried soybean products was lower than the average gross profit margin in the same period of last year; The revenue of poultry products was 98 million yuan (up 64.5% at the same time) and the gross profit margin was 18.5% (down 5pct at the same time), which was caused by the rise in the price of some raw materials and the low gross profit margin at the initial stage of new products listing. It was the incremental income brought by the optimization and upgrading of existing products, channel expansion and the listing of new products; Other revenue was 48 million yuan (with an increase of 214%) and the gross profit margin was 22.5% (with a decrease of 19 PCT), which was caused by the product structure and the gross profit margin of new products being lower than the average gross profit margin.
In terms of subregions, the revenue of East China in 2021 was 284 million yuan (an increase of 19%), accounting for 26%; The revenue of central China was 239 million yuan (with an increase of 36%), accounting for 22%. It is the main sales area of the company’s new products such as short-term guaranteed dried beans, which is concentrated in Central China. The listing and promotion of new products led to revenue growth; The revenue of Southwest China was 172 million yuan (with an increase of 22%), accounting for 15%; The revenue of South China was 173 million yuan (with an increase of 26%), accounting for 16%; The revenue of North China was 143 million yuan (with an increase of 12%), accounting for 13%; The revenue of Northwest China was 69 million yuan (with an increase of 17%), accounting for 6%; The revenue of Northeast China was 28 million yuan (with an increase of 16%), accounting for 2.5%. In 2021, the number of dealers increased from 1734 to 1869, an increase of 7.79%, and the offline sales revenue increased by 21.96%. Online sales revenue increased by 23.32%, of which online direct sales increased by 116.48%.
In terms of production capacity, the designed production capacity of fish products is 18000 tons, that of bean products is 6000 tons, and that of poultry products is 1600 tons. In terms of sales volume, in 2021, the sales volume of fish products was 17900 tons (with an increase of 15%), the sales volume of bean products was 5700 tons (with an increase of 4%), the sales volume of poultry products was 12000 tons (with an increase of 80%), and the sales volume of other products was 0100 tons (with an increase of 263%).
New products continue to emerge from the old and channels continue to be intensively cultivated
On the brand side, in 2022, the company will continue to focus on building the brand image of brine snack experts with leading sales, cultivating category cognition and deepening brand construction. First, pay attention to online brand communication, concentrate advantageous resources and carry out brand planning and communication activities for young consumer groups. Second, focus on the image building of the market terminal, combine online and offline advertising and brand exposure, promote the integration of product efficiency, optimize communication efficiency, and realize the rapid improvement of brand influence and the rapid rise of category market scale.
On the product side, in 2021, the company focused on three categories: Coke fish products, bean products and poultry products. According to the needs of consumer demand and channel expansion, the company focused on launching three categories of large packaging (whole bag sales and whole box sales) series in 2021. At the same time, it also developed innovative and upgraded taste products such as “Huxiang spicy” and “hot pot”, which achieved certain market results. In 2022, the company will continue to drive the transformation and upgrading of core categories through technological upgrading and standardization, so as to achieve the goal of optimizing product taste, reducing product cost and improving the core competitiveness of products. At the same time, the company will actively research and innovate, develop innovative fish products, new bean products, poultry products, egg products, vegetarian flavor and other products, and further optimize the product structure to meet the diverse needs of consumers.
On the channel side, the company adheres to the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) all channel development strategy, takes the channel layout and construction as the development core of the company, and continuously improves the market competitiveness of products. The sales mode is dominated by distribution mode and supplemented by direct sales mode; The sales channel has gradually formed a pattern of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) two wheel drive and balanced development. In 2022, the company will keep up with the changing trend of online and offline channels, speed up the construction of channels for the blank market, expand the breadth, and make every effort to improve the distribution rate. For the covered channels, strengthen the fine operation, do a good job in deep intensive cultivation to improve the output, and then continuously improve the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) marketing network of the company.
Profit forecast
At present, the company continues to focus on deep ploughing marinated snacks, focusing on the “three categories” of deep ploughing leisure fish products, bean products and poultry products, constantly innovate, give full play to the core advantages of the company’s independent manufacturing, and adhere to deepening the construction of marketing network. We are optimistic that the company will focus more on fish snacks, optimize the existing product structure, expand other categories of fish snacks and seafood snacks, and continue to promote new products. We expect that the EPS from 2022 to 2024 will be 0.26/0.32/0.39 yuan, and the current share price corresponding to PE will be 32 / 26 / 21 times respectively. It will be covered for the first time and given a “recommended” investment rating.
Risk tips
Macroeconomic downside risk, consumption dragged down by the epidemic, the promotion of new products is less than expected, and the risk of rising raw materials.
