\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 952 Jiangsu Provincial Agricultural Reclamation And Development Co.Ltd(601952) )
Event:
Jiangsu Provincial Agricultural Reclamation And Development Co.Ltd(601952) released the annual report: in 2021, the company achieved an operating revenue of 10.64 billion yuan, a year-on-year increase of 23.4%, and a net profit attributable to the parent company of 740 million yuan, a year-on-year increase of 10.1%.
Key investment points:
The output of planting and harvest was at an all-time high, and the operating revenue increased by 23.4% year-on-year. In 2021, the company achieved an operating revenue of 10.64 billion yuan, including 3.14 billion yuan from planting, 1.57 billion yuan from seeds, 3.04 billion yuan from edible oil and 1.36 billion yuan from rice processing. The total output of wheat and rice in the whole year was 1.266 million tons, an increase of 1.0% year-on-year. Among them, the average yield of wheat per mu in this department was 1147 kg, an increase of 4 kg year-on-year, another record high; The average yield of rice in this department is 1245 Jin per mu; The expanded base has a yield of 927 kg of wheat and 1101 kg of rice per mu, both of which are at the historical high-yield level.
Grasp the advantages of high-quality cultivated land resources and increase the gross profit margin of planting business. The company has signed the land contract agreement with the agricultural reclamation group. By paying the land contract fee to the agricultural reclamation group every year, the company can independently plant and operate about 955000 mu (autumn sowing in 2021) of high-quality production base. From November 1, 2021 to October 31, 2026, the unit price of land contract fee between the company and the agricultural reclamation group was reduced from 398.33 yuan / mu / year to 361.64 yuan / mu / year, a decrease of 9.21%. Meanwhile, as of autumn sowing in 2021, the company’s transferred land (including land custody) covers an area of about 289000 mu. In 2021, the company’s rice output was 609000 tons, the sales volume was 222000 tons, the income from planting rice was 1.55 billion yuan, a year-on-year decrease of 10.7%, the gross profit margin was 19.4%, and a year-on-year increase of 4.1pct; The output of big and small wheat was 540000 tons, the sales volume was 873000 tons, the income of big wheat was 1.34 billion yuan, an increase of 1.5% year-on-year, and the gross profit margin was 33.1%, an increase of 6.8 PCT year-on-year.
Seed industry, rice processing and grain and oil business go hand in hand. In 2021, the sales revenue of the company’s seed business was 1.57 billion yuan, with a year-on-year increase of 26.4%. Dahua seed industry focused on the market outside the province, and the pace of expansion was significantly accelerated. The annual sales of crop seeds (including wool seeds) were 382900 tons. The gross profit margin of seed business was 11.0%, a year-on-year decrease of 1.8pct, mainly due to the decline of gross profit margin of rice seeds. The company’s rice processing business achieved an operating revenue of 1.36 billion yuan, a year-on-year increase of 8.1%, and the gross profit margin was 6.4%, a year-on-year decrease of 3.4pct. In the whole year, 345700 tons of all kinds of rice were sold. The company’s edible oil business achieved a sales revenue of 3.04 billion yuan, a year-on-year increase of 8.0%, and the gross profit margin was 8.1%, a year-on-year decrease of 0.9pct. In the whole year, 310100 tons of various edible oil were sold.
Profit forecast and investment rating: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 890 / 980 / 910 million respectively, and the corresponding PE will be 23.0 / 20.8 / 22.5 times respectively, maintaining the “buy” rating.
Risk warning: natural disaster risk; Risk of falling food prices; Risk of rising planting costs; Risk of rising seed production cost; The company’s performance is lower than the expected risk.
