\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 91 Sirio Pharma Co.Ltd(300791) )
Event: on April 11, the company released its annual report for 2021, with annual revenue of 2.369 billion yuan, a year-on-year increase of + 14.62%; Q4 was 621 million yuan, a year-on-year increase of + 1.22%. The annual net profit attributable to the parent company was 232 million yuan, a year-on-year increase of – 9.92%; Q4 was 31 million yuan, a year-on-year increase of – 55.90%. The annual basic EPS is 1.29 yuan.
In the past 21 years, the income of the main business increased in double digits, and the profit fell year-on-year due to factors such as weak demand. In 2021, the company’s revenue maintained steady growth, and the Chinese market was sluggish due to downstream demand; The European market is affected by covid-19 epidemic repeatedly; Affected by negative factors such as rising freight costs in the American market, the company’s net profit fell year-on-year. In terms of products, the revenue of soft capsules / tablets / Powders / soft candy / drinks in 21 years was 903 / 3.20 / 3.29 / 4.72 / 250 million yuan, a year-on-year increase of + 2.24% / + 10.09% / + 5.54% / + 44.22% / + 36.51%; 21h2 achieved revenue of RMB 476 / 1.76 / 1.59 / 2.30 / 127 million respectively, with a year-on-year increase of + 9.52% / + 8.60% / – 17.50% / + 7.55% / + 9.50%. The growth rate of traditional dosage forms such as soft capsules, tablets and powders is stable; New dosage forms such as nutritional soft candy and bagged drinks have a high income growth due to the impact of new production capacity. In terms of regions, China / Europe / America achieved revenue of 1.458435/398 billion yuan in 21 years, a year-on-year increase of + 14.06% / – 5.68% / + 49.79%; 21h2 achieved a revenue of 723 / 233 / 210 million yuan, a year-on-year increase of – 4.71% / + 11.13% / + 37.26%.
In terms of production capacity, the production lines of new dosage forms such as nutritional soft candy, bagged drinks and exploding beads were successfully put into operation in 21 years. Specifically, in 2021q1, Ma’anshan base will increase the production capacity of 800million soft candies; 21q3 MAANSHAN beverage workshop added 100 million bags of bagged drinks and 80 million bags of jelly; In the 21 year, the Shantou base added 900 million new exploding beads and 37 million bottles of essence bottles. It is estimated that the production capacity of 22q2 MAANSHAN base will increase by 1.8 billion pieces of soft candy.
The gross profit margin was stable in 21 years, and the expense rate increased during the period. The gross profit margin of the company in 21 years was 32.72%, year-on-year + 0.12ppt (21q4 was 30.30%, year-on-year -0.34ppt). Among them, the gross profit margin of soft capsule / tablet / powder / soft candy / beverage was 26.80% / 48.68% / 22.31% / 40.01% / 22.98%, with a year-on-year increase of + 0.06ppt / – 0.71ppt / – 1.36ppt/1.84ppt / – 3.99ppt, and the gross profit margin of each dosage form changed little.
The company’s sales expense rate in 21 years was 6.28%, with a year-on-year increase of + 0.37ppt (21q4 was 6.94%, with a year-on-year increase of + 3.44ppt). The reason is that the company has increased its advertising expenses. The rate of administrative expenses was 10.33%, with a year-on-year increase of + 0.94ppt (21q4 was 11.74%, with a year-on-year increase of + 2.54ppt), which was due to the large year-on-year increase in employees’ wages and salaries; The amortization of equity incentive expenses increased. The R & D expense rate was 3.51%, with a year-on-year increase of + 0.38ppt (21q4 was 3.86%, with a year-on-year increase of + 1.45ppt), which was due to the year-on-year increase in R & D expenses such as R & D personnel wages and material expenses. The financial expense ratio was 1.11%, with a year-on-year increase of + 0.96ppt (21q4 was 0.07%, with a year-on-year increase of -0.48ppt), which was due to the increase of interest expenses of convertible bonds and the year-on-year increase of exchange losses.
Investment suggestion: it is estimated that the company will achieve a revenue of RMB 2.897/35.44/4.331 billion and a net profit attributable to the parent company of RMB 290359/446 million in 22-24 years, equivalent to EPS of RMB 1.61/1.99/2.47 respectively. At present, the corresponding share price of PE in 22-24 years is 17 / 14 / 11 times. The company’s current valuation is equivalent to the 17 times valuation level of other food sectors in 22 years (wind unanimously predicted that CITIC industry classification). The company’s product layout is perfect. The new capacity of Ma’anshan base will be put into operation in 22 years, with abundant capacity reserves and good growth. It maintains the “recommended” rating.
Risk tips: the impact of the epidemic is more than expected, food safety problems, capacity expansion is less than expected, etc.
