\u3000\u3 Shengda Resources Co.Ltd(000603) 369 Jiangsu King'S Luck Brewery Joint-Stock Co.Ltd(603369) )
Key investment points
Event: the company released its 2021 annual report, which achieved a revenue of 6.41 billion yuan, a year-on-year increase of + 25.1%, and a net profit attributable to the parent company of 2.03 billion yuan, a year-on-year increase of 29.5%; Among them, single Q4 achieved a revenue of 1.07 billion yuan, a year-on-year increase of 15.8%, and the net profit attributable to the parent company was 330 million yuan, a year-on-year increase of 30.4%. The annual performance was about the median value of the pre increase announcement in the early stage, which was in line with market expectations.
The upgrading of special a + driven structure has steadily promoted investment attraction outside the province. 1. In terms of products, special a + products, special a products, class a products, class B products and class C products achieved revenue of 4.17 billion yuan (+ 35.7%), 1.71 billion yuan (+ 14.1%), 260 million yuan (+ 4.4%), 140 million yuan (- 13.3%) and 80 million yuan (- 9.8%) respectively in the past 21 years. Among them, the proportion of special a + products increased by 5.1 percentage points to 65.0%, and the product structure was significantly upgraded. 2. In terms of sub regions, Huai'an region, Nanjing region, Southern Jiangsu region, Central Jiangsu region, Yancheng region, Huaihai region and outside the province achieved revenue of 1.27 billion yuan (+ 18.0%), 1.58 billion yuan (+ 19.8%), 850 million yuan (+ 32.5%), 870 million yuan (+ 32.9%), 760 million yuan (+ 15.0%), 610 million yuan (+ 44.9%) and 450 million yuan (+ 36.1%) respectively. The growth rate outside the province was faster than that inside the province. 3. Intensive cultivation in the province continued to deepen, and the growth rate of weak markets such as southern Jiangsu and Yancheng was bright; The cultivation of markets outside the province has been promoted in an orderly manner, and the sales of Xiqing company and culture and tourism company have achieved high growth; In 2021, there was a net increase of 103 dealers, including 88 outside the province, and the investment promotion outside the province was steadily promoted.
The product structure was upgraded, the gross profit margin was increased, the cost was reduced and the efficiency was increased significantly, and the net profit margin was increased. 1. The gross profit margin of the company increased by 3.5 percentage points to 74.6%, mainly benefiting from the high growth of V series and the new upgrading of the new version of sikaihuan, driving the overall ton price to increase by 24.0% to 199000 yuan / ton, and accelerating the upgrading of product structure. 2. The company increased resource investment in core products and weak markets, increased consumer interaction and brand building, and superimposed the scale effect under the high growth of revenue. The sales rate decreased by 2.0 percentage points to 15.1% compared with the same period of last year, realizing a benign interaction between sales expenses and the increase of revenue. 3. Thanks to the company's focus on lean management and cost reduction and efficiency increase, the management expense rate and financial expense rate remained basically stable. With the upgrading of product structure and the decline of expense rate, the annual net interest rate increased by 1.1 percentage points to 31.7%.
The expansion of the industry is superimposed with equity incentives, and the long-term growth momentum is sufficient. 1. The secondary high-end price in Jiangsu market continues to expand. The company's V-series and K-series precision card slots are secondary high-end, with outstanding achievements in brand and channel construction, and will enjoy the secondary high-end expansion bonus in Jiangsu Province. 2. Guoyuan Sikai has been successfully upgraded, effectively undertaking the upgrading of consumption in the province, and the channel thrust remains strong; Guoyuan V series has successfully cut into the high-end price in the province and has gradually formed a new growth pole of the company. 3. The company completed the share repurchase on November 26, 2021, and the equity incentive is expected to be implemented in 2022, which will fully mobilize the enthusiasm of senior executives and middle-level backbone, which is conducive to the long-term and healthy development of the company.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 2.02 yuan, 2.48 yuan and 2.99 yuan respectively, and the corresponding PE will be 22 times, 18 times and 15 times respectively. The company will fully benefit from the secondary high-end capacity expansion bonus, and the superimposed equity incentive is expected to be implemented. It is optimistic about the company's long-term growth capacity and maintain the "buy" rating.
Risk tip: the risk of sharp economic decline and the risk of repeated covid-19 epidemic.
