\u3000\u30 Jinzai Food Group Co.Ltd(003000) 12 Centre Testing International Group Co.Ltd(300012) )
The net profit attributable to the parent company in 22q1 was + 17% – 21% year-on-year. Under the influence of the epidemic, the operating revenue and net profit increased steadily. The company expects to realize the net profit attributable to the parent company of 117121 million yuan in 22q1, with a year-on-year increase of 17% – 21%; The net profit deducted from non parent company was 101105 million yuan, with a year-on-year increase of 45% – 51%. 22q1: the epidemic situation in China has been repeated, and some cities have implemented sealing and control management. In this regard, the company has actively taken effective measures to ensure the stable growth of business in all sectors, and the operating revenue and net profit have maintained steady growth.
Under the influence of the epidemic, the company’s net profit deducted from non parent companies increased by 45% – 51%. The growth rate of net profit deducted from non parent company is much higher than that of net profit returned from parent company. On the one hand, the non operating profit and loss has decreased significantly. Specifically, the impact of non recurring profit and loss on the net profit of the company in 22q1 is about 15.7 million yuan, a decrease of 14.53 million yuan compared with 30.23 million yuan last year, mainly due to 1) additional investment in 2021q1 and the investment income of 5.8548 million yuan from business merger not under the same control, which is not available in this period; 2) Government subsidies and financial management income decreased year-on-year; On the other hand, we expect the expense ratio to decrease during the period: 1) management expenses: the amortization expenses of stock options granted by the company in May 2019 from 2021 to 2022 are RMB 14367 / 434100 respectively; The amortization expense of stock options granted in December 2018 in 2021 was 3.4426 million yuan, and the amortization expense of 22q1 stock options decreased by about 1.1113 million yuan compared with 21q1; 2) Sales expenses: the travel of employees affected by the epidemic is limited and is expected to be reduced. On the whole, the relevant expenses of the company affected by the epidemic have been reduced, and the fine management of the company has been continuously promoted, and the expenses will be better controlled during the period.
The company’s share repurchase demonstrates confidence. On March 15, the company announced that it plans to use its own funds to repurchase 3-5 million shares of the company at a price of no more than 25 yuan / share for employee stock ownership plan or equity incentive. The repurchase plan fully reflects the management’s affirmation of the company’s internal value and firm confidence in the future sustainable development, which is conducive to the return and improvement of the value of all shareholders and enhance the confidence of investors.
Risk warning: economic downturn; Credibility is affected by adverse events; Business growth was lower than expected.
Investment suggestion: the company’s testing industry is a high-quality track with thick snow on Changpo. It has strong long-term certainty. In the short term, the company’s performance is stable and resilient under repeated epidemics. After nearly two years, the company’s valuation has been digested to a historically low level, and the valuation of overseas leading companies has a considerable margin of safety. We expect the company’s net profit attributable to the parent company in 202123 to be RMB 749 / 938 / 1156 million, corresponding to pe41 / 33 / 27 times, maintaining the “buy” rating.
