\u3000\u3 China Vanke Co.Ltd(000002) 557 Chacha Food Company Limited(002557) )
Event overview
The company issued an annual report, and achieved an operating revenue of 5.985 billion yuan in 2021, a year-on-year increase of + 13.15%; The net profit attributable to the parent company was 929 million yuan, a year-on-year increase of + 15.35%; Deduct 799 million yuan of net profit not attributable to the parent company, a year-on-year increase of + 15.95%; eps1. 84 yuan.
Analysis and judgment:
Steady melon seeds + high increase of nuts, and the scale continues to expand
The company's revenue grew steadily by 13.15% in the past 21 years, thanks to the continuous exploration of channels and intensive cultivation, the continuous expansion of new channels and new scenes, the continuous optimization of product structure, and the price increase of core products. Among them, the revenue increased by 28.3% in the fourth quarter, mainly due to the recovery of consumption and the preparation and delivery of goods before the Spring Festival.
By category, the revenue of sunflower seeds and nuts of the company was 3.94 billion yuan and 1.37 billion yuan respectively, with a year-on-year increase of + 5.86% / + 43.82% respectively. Nuts achieved a high increase, mainly due to the annual sales of nearly 1 billion yuan of daily nuts through flavor extension, brand cross-border and multi platform publicity and promotion. Blue bag probiotic daily nuts, nut oatmeal and roof box daily nuts also achieved good sales. In terms of sub regions, the company's southern region / northern region / eastern region / e-commerce / overseas achieved operating revenue of RMB 1.93/12.1/16.1/5.7/520 billion respectively, which was + 3.56% / + 21.70% / + 18.78% / + 11.03% / + 10.16% compared with the same period last year. All regions developed in a balanced manner.
The scale effect promotes the gross profit margin and profitability
The gross profit margin of the company in 2021 was 31.95%, a slight increase of 0.06 PCT year-on-year. The gross profit margin of sunflower seeds and nuts increased by 0.78 and 0.97 PCT respectively compared with the same period last year, mainly due to the scale effect and the increase in the proportion of blue bag melon seeds with higher gross profit margin. The price increase in the second half of the year was also helpful to the increase of gross profit margin. In terms of expenses, the company's sales / management / R & D / financial expense rate was 10.1% / 4.4% / 0.8% / - 0.31% respectively, which was + 0.33 / - 0.15 / + 0.07 / - 0.03pct respectively compared with the same period last year, and the comprehensive expense rate increased by 0.22pct. The increase of the company's sales expense rate was mainly due to the year-on-year increase of employee salary expense rate. The company added 241 sales personnel to expand the market; The decrease in the rate of administrative expenses is mainly due to the improvement of operating efficiency. The reduction of income tax rate from 19.3% to 17.5% is also conducive to profit growth. Overall, the company's overall operation was stable, the net interest rate increased by 0.29pct, the net profit attributable to the parent company was + 15.3% year-on-year, and the profitability was improved.
The price increase effect runs through the whole year, focusing on core business and accelerating growth
Throughout the year, on the one hand, the positive price increase will run through the whole year, on the other hand, the endogenous growth of melon seeds and nuts is still strong. The price increase of the company's melon seed products ranges from 8% to 18%, which basically covers the price increase of melon seed raw materials, which will effectively boost the company's performance and thicken the channel profit space. On the other hand, Guokui continued to promote channel sinking and industry penetration, and blue bag, high-end Kui Zhen and other products contributed to the increment; The nut side focuses on the daily penetration of nuts into matching channels such as group buying, fruit stores and gifts, and the operation has increased steadily throughout the year. The company's long-term steady growth of melon seeds and structural upgrading, and the logic of continuous and large-scale nuts and becoming bigger and stronger is still smooth. It is expected to continue to achieve scale expansion and increase market share.
Investment advice
We estimate that the company's revenue in 22-24 years will be 7.004/8.073/9.191 billion yuan respectively, with a year-on-year increase of + 17.0% / 15.3% / 13.8% respectively; The net profit attributable to the parent company was 1.12/13.1/1.52 billion yuan respectively, with a year-on-year increase of + 20.6% / + 17.1% / + 15.9% respectively; EPS is 2.21/2.59/3.00 yuan respectively. The share price is 55.98 yuan on April 14, 2022, and the corresponding valuation is 25 / 22 / 19 times respectively. For the first time, give a "buy" rating.
Risk tips
Rising raw material prices, intensifying industry competition and food safety.
