\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 298 Angel Yeast Co.Ltd(600298) )
Performance summary:
It was announced that in 2022q1, the revenue was 3.03 billion, a year-on-year increase of 14%, the net profit was 310 million, a year-on-year decrease of 29.3%, the net profit after deduction was 260 million, a year-on-year decrease of 36%, and the gross profit margin decreased by 6.5 percentage points to 26.7%.
From the perspective of revenue in the first quarter, the company’s revenue side met expectations. In terms of categories, the revenue of yeast and deep-processing products was 2.2 billion, with a year-on-year increase of 4.2%. The revenue of sugar, packaging products, dairy products and other products was 360 million, 110 million, 20 million and 310 million respectively, with a year-on-year increase of 161%, 8.9%, 24% and 18% respectively. The growth rate of microbial nutrition and plant nutrition in the subdivided categories exceeded 20%. The integration of e-commerce on the pipeline achieved initial results, with a year-on-year growth rate of more than 11%. Geographically, China’s revenue was 2.17 billion and foreign revenue was 830 million, with a year-on-year increase of 13% and 16.4% respectively, achieving steady growth.
The profit side decreased significantly year-on-year, which was affected by two factors: cost and expense. On the one hand, in terms of gross profit margin, the structural impact of the rising cost of molasses and the increase in the proportion of sugar making business with low gross profit during the reporting period reduced the gross profit margin by 6.5 percentage points to 26.7% year-on-year. On the other hand, during the reporting period, the comprehensive expense rate increased by 1.51 percentage points year-on-year to 14.83%, the sales expense rate increased by 0.5 percentage points year-on-year (expected to be affected by the increase of sales personnel), the management expense rate increased by 0.23 percentage points year-on-year, the R & D and financial expense rate increased by 0.06 percentage points and 0.72 percentage points respectively. The financial expense rate increased significantly, mainly due to the increase of interest expenses and exchange losses.
The company plans to achieve a sales revenue of 12.6 billion (YoY + 18%) this year, with a steady increase in net profit. It is expected to continue to take the development opportunities of China’s foreign markets and steadily promote the development of various businesses. At present, the purchase of molasses has been completed by about 70% (the corresponding advance payment has increased by 66% month on month). The rest is expected to be replaced by hydrolyzed sugar, and the overall cost increase is expected to be 20% +. From the perspective of gross profit margin, 1q gross profit margin has improved compared with 21q4, with a month on month increase of 4.9 percentage points, indicating that the effect of product price increase has been shown, and the subsequent performance is expected to be better quarter by quarter. In the long run, the company will enter the period of centralized production capacity in the next few years, and capacity expansion will bring new development opportunities to the company.
Maintain the profit forecast. It is expected that the net profit will be 1.39 billion and 1.76 billion respectively from 2022 to 2023, with a year-on-year increase of 6.5% and 26.3% respectively. The EPS will be 1.67 yuan and 2.11 yuan respectively. The current share price corresponding to PE is 24 times and 19 times respectively, maintaining the “buy” investment proposal.
Risk tip: overseas expansion is less than expected, cost rise is more than expected, terminal movable sales is less than expected, and exchange loss is more than expected
