\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. 22q1 achieved a revenue of 3.032 billion yuan, a year-on-year increase of 14.1%; The net profit attributable to the parent company was 313 million yuan, a year-on-year increase of – 29.3%; The net profit deducted from non parent company was 265 million yuan, a year-on-year increase of – 36.1%.
Comments:
22q1 yeast series maintained positive growth under high base. By industry, 22q1 yeast series / packaging / dairy products / sugar making / others achieved revenue of 2.207/1.07/0.16/3.63/309 billion yuan respectively, with a year-on-year increase of 4.2% / 8.9% / 23.9% / 160.8% / 18%. Under the high base, the revenue growth of yeast series slows down. We expect that the price increase of the company’s products and the abandonment of products with low gross profit will also have an impact on the sales of yeast series products. In terms of subregions, in 22q1, China / foreign countries achieved revenue of RMB 2.167834 billion respectively, with a same increase of 13.2% / 16.4%. The epidemic has made a positive contribution to the demand of the company’s international market, and the growth rate of foreign revenue is good.
The proportion of sugar making business in 22q1 continued to drag down the gross profit margin. 22q1 company’s gross profit margin was 26.7%, down 6.6 percentage points year-on-year. The profitability of sugar making business is poor, and the gross profit margin of the company’s sugar making business in 21 years is only – 2.99%. 22q1 sugar business revenue accounted for 12.1%, an increase of 6.8 percentage points year-on-year. The increase in the proportion of sugar business with negative gross profit dragged down the level of gross profit margin. The gross sales difference of 22q1 was 20%, a year-on-year decrease of 7.1 percentage points. On the one hand, due to the change of product structure and the rise of raw material cost, the price increase of the company could not be fully covered. 22q1 sales / management / R & D expense rates were 6.7% / 3.2% / 4.0% respectively, with a year-on-year increase of + 0.5 / + 0.2 / + 0.1 percentage points respectively. The sales expense rate has increased significantly. We expect that due to the increase of sales personnel in the company in 21 years, and the equity payment expense of 22q1 has increased year-on-year. 22q1 company’s net profit attributable to the parent company was 10.3%, a year-on-year decrease of 6.3 percentage points.
Profit forecast and investment rating: in the short term, the company was affected by the rising cost of raw materials and the decline of price increase, and the profit side continued to be under pressure. In the long run, yeast derivatives have broad prospects and are expected to drive the company’s revenue to maintain rapid growth. It is estimated that the EPS of the company in 22-24 years will be 1.70/2.07/2.46 yuan respectively, and the corresponding PE will be 23.52/19.36/16.26 times respectively, maintaining the “buy” rating.
Stock price catalyst: product price increase; Molasses prices fell; Performance exceeds expectations, etc.
Risk factors: the price of molasses rose more than expected; Exchange rate fluctuations; The production capacity was lower than expected.
