\u3000\u30003 Guangdong Hongda Blasting Co.Ltd(002683) 00268)
Event:
The company released its annual report for 2021: the company’s revenue in 2021 was 4.597 billion yuan, a year-on-year increase of 1.6%; The net profit attributable to the parent company was -289 million yuan, with a significant year-on-year loss of 424 million yuan.
Comments:
A.S. subsidiary reduced its losses significantly year-on-year, and its financial expenses decreased significantly.
In 2021, the company’s revenue was 4.597 billion yuan, a year-on-year increase of 1.6%. Among them, the annual sales volume of A.S. subsidiary was 85600 tons, a year-on-year decrease of 15%; The sales revenue was 3.169 billion yuan, a year-on-year increase of 2%; The net profit was 831938 million yuan, with a significant year-on-year loss of 604 million yuan. In 2021, the gross profit margin of the company’s sales was 6.08%, with a year-on-year increase of 12.32pct; A. S. the company’s annual gross profit margin was 6.2%, with a year-on-year increase of 17.1pct. The main reason is the restorative rise in the price of salmon in 2021. In 2021, the average price of Chilean fish Salix sold to the United States increased by 33% year-on-year. The company’s expense rate during the period was 12.82%, a year-on-year decrease of 3.56 PCT, of which the financial expense rate was 5.75%, a year-on-year decrease of 3.33 PCT, mainly due to the decrease of bank loan principal and financial expenses.
Actively arrange 3R prefabricated dishes and strengthen brand exposure.
The company mainly launched brands focusing on the household consumption segment, such as “mamabear”, “jiawo Xiansheng” and “greedy bear classmate”, and the sales of value-added products increased by 45% year-on-year in 2021. In 2022, the company will focus on five sales channels: distribution, retail, catering, monopoly and gift. China’s salmon market has high prices and fast growth. With the development of Chinese market, the gross profit margin of the company’s products is expected to increase.
The intelligent factory in zone 12 of Chile has entered trial operation, and the company will further reduce costs and increase efficiency.
At the end of March 2022, the construction of dumestre, a new processing plant in zone 12 of the company, was completed and entered the trial operation stage. The plant is the first large-scale intelligent processing plant in the region, with an annual processing capacity of 72000 tons. It will be the first slaughterhouse with land-based overpressure relief temporary breeding pond in District 12. At the same time, it has the capacity of slaughtering and deep processing. The company is expected to further reduce costs and increase efficiency.
Earnings forecast, valuation and rating.
It is estimated that the EBITDA from 2022 to 2024 will be 573 / 915 / 1214 million yuan respectively, and the EV / EBITDA will be 15.8x/9.7x/7.0x; EPS is 0.57/1.64/2.62 yuan respectively. With reference to the 23-year average valuation level of comparable companies, the target price was maintained at 34.9 yuan and the “buy” rating was maintained.
Risk tips
Natural disaster risk; Exchange rate fluctuation risk; Food safety risk
