\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 298 Angel Yeast Co.Ltd(600298) )
Event: the company released the first quarterly report of 2022. In 2022q1, the company realized an operating revenue of 3.032 billion yuan, an increase of 14.14% at the same time; The net profit attributable to the parent company was 313 million yuan, a decrease of 29.30%. The net cash flow from operating activities was -313 million yuan, compared with -445 million yuan in the same period last year.
The growth of yeast main business slowed down, and the sugar business maintained a high growth. The company realized a revenue of 3.032 billion yuan in 2022q1, an increase of 14.14% at the same time. In terms of products, yeast series, sugar making, packaging, dairy products and other products achieved revenue of 2.207/3.63/1.07/0.16/309 billion yuan respectively, with a year-on-year increase of + 4.16% / + 160.76% / + 8.85% / + 23.87% / + 17.96%. Among them, the growth of yeast main business slowed down and sugar making business maintained a high growth; In terms of subregions, China achieved revenue of 2.167 billion yuan, an increase of 13.23% and overseas revenue of 834 million yuan, an increase of 16.38%. The growth of overseas revenue was higher than that of China; By channel, offline channel sales were 1.965 billion yuan, an increase of 18.32%, and online channel sales were 1.037 billion yuan, an increase of 6.84%.
The upward pressure on costs led to the pressure on Q1 profits, and the expense rate remained stable. The company's Q1 gross profit margin in 2022 was 26.68%, a sharp decline of 6.56pcts, mainly due to the sharp rise in raw material molasses and transportation costs. In terms of expense rate, the company's Q1 sales expense rate was 6.68%, with an increase of 0.49pcts, the management expense rate was 7.16%, with an increase of 0.29pcts, the financial expense rate was 0.99%, with an increase of 0.73pcts, which remained stable on the whole. Disturbed by the epidemic in China this year and superimposed on the upward pressure of costs, the company's Q1 net profit attributable to the parent decreased significantly by 6.33pcts to 10.31% in 2022, realizing a net profit attributable to the parent of RMB 313 million, a decrease of 29.30% at the same time.
Investment suggestion: in the Chinese market, microbial nutrition, plant nutrition and other fields have achieved an increase of more than 20%, and the integration of e-commerce business has achieved initial results, with a year-on-year increase of more than 11%. In the international market, the company was deeply integrated into regional markets, and its export revenue increased by 16.37% year-on-year. In order to deal with the tension between Russia and Ukraine, the company has ensured the stability and order of production and operation of Russian companies by adjusting the export path of Russian companies' products and flexibly selecting multiple foreign exchange currencies. However, at present, it is still under great pressure from the cost side and short-term profits are under pressure. We expect that the revenue growth rate of the company from 2022 to 2024 will be 18.0% / 12.5% / 8.8%, the net profit growth rate will be 7.0% / 21.9% / 10.5% and the EPS will be 1.68/2.05/2.26 yuan respectively; Maintain the investment rating of overweight-a, and the six-month target price is 46.8 yuan, equivalent to 28 times PE in 2022.
Risk tip: raw materials rise more than expected, business development outside China is less than expected, and exchange rate fluctuation risk.
