\u3000\u3 Bohai Water Industry Co.Ltd(000605) 338 Zhongyin Babi Food Co.Ltd(605338) )
Event: the company achieved a total operating revenue of 1.375 billion yuan in 2021, an increase of 41.06% year-on-year; The net profit attributable to the parent company was 314 million yuan, a year-on-year increase of 78.92%; The net profit attributable to the parent company after deduction was 152 million yuan, an increase of 18.01% year-on-year; Basic eps1 27 yuan / share, with a year-on-year increase of 45.98%.
Revenue side: the company achieved a total operating revenue of 1.375 billion yuan in 2021, with a year-on-year increase of 41.06%. It is mainly due to the relatively low base affected by covid-19 epidemic in the same period of last year, the steady increase in the number of stores in 21 years, the rapid recovery of single store sales and the expansion of group meal business. Quarterly, 21q1 / 21q2 / 21q3 / 21q4 achieved revenue of 253 million yuan / 342 million yuan / 378 million yuan / 402 million yuan respectively. According to the sales model, the franchise model achieved a revenue of 1.121 billion yuan, a year-on-year increase of + 37.93%. The management of major companies continued to increase the number of stores by increasing the expansion of stores; Uniformly manage the take out business of the store, enable the performance of the store, continuously launch new products to increase the sales of the store, and continuously upgrade the hardware image of the store, so as to promote the rapid recovery of the performance of a single store; The revenue of Direct stores reached 26 million yuan, a year-on-year increase of + 106.77%, mainly due to the recovery of sales in 21 years due to the impact of the epidemic in 20 years, and the increase in the number of Direct stores on the other hand; The group meal achieved an operating revenue of 215 million yuan, a year-on-year increase of + 61.21%, mainly due to the company’s management’s efforts to promote the group meal business by increasing the investment in human resources.
Cost side: gross profit margin was 25.70%, year-on-year -2.2pct. Mainly disturbed by the rise of raw material costs, the increase of labor costs and the increase of depreciation and amortization, the increase of operating costs was higher than the increase of income, reaching 45.36%, and the gross profit margin decreased by 2.20 percentage points.
Cost side: the period cost rate was 8.23%, year-on-year +3.88pct. Among them, the sales expense rate was 6.58%, with a year-on-year increase of + 1.67pct, which was mainly due to the increase of marketing planning expenses, the increase of sales personnel, salary promotion and social security expenditure without policy reduction, resulting in the increase of employee salary; The management expense ratio was 6.35%, with a year-on-year increase of -0.43pct; The R & D expense ratio was 0.43%, with a year-on-year increase of -0.01pct; The financial expense ratio was -2.95%, with a year-on-year increase of -0.64pct.
Profit side: in 2021, the company realized a net profit attributable to the parent company of 314 million yuan, with a year-on-year increase of 78.92%, and the net interest rate attributable to the parent company was 22.83%, with a year-on-year increase of + 4.83pct. On a quarterly basis, 21q1 / 21q2 / 21q3 / 21q4 achieved net profit attributable to the parent company of 13 million yuan / 20 million yuan / 15 million yuan / 88 million yuan respectively. It is mainly due to the increase of profit brought by the increase of operating income and the increase of income from changes in fair value generated by Tianjin Junzheng investment management partnership (limited partnership) indirectly holding Eastroc Beverage (Group) Co.Ltd(605499) (Group) Co., Ltd.
Investment suggestion: the company actively promotes the development of online businesses such as fresh e-commerce platform and store takeout, expands the omni-channel sales model, and the business of group meals and key customers develops rapidly. We expect the net profit of 22-23 years to be 265 million yuan / 375 million yuan respectively, and the corresponding PE is 28x / 20x respectively, maintaining the “buy” rating.
Risk tips: raw material price fluctuations, shop opening progress is less than expected, operation is less than expected, macroeconomic risks, etc
