\u3000\u30003 Guangdong Hongda Blasting Co.Ltd(002683) 00268)
Event:
On April 18, 2022, the company released its first quarterly report: the company’s revenue was 1.223 billion, a year-on-year increase of 6.2%; The net profit attributable to the parent company was 110 million, with a significant year-on-year increase of 170.5%.
Comments:
The demand of salmon industry recovered strongly, and the profit of the company increased sharply in the first quarter.
According to the datasalmon report, the global salmon sales prices showed a rapid recovery trend. In 2021, the average price of trimd fish sold in Chile to the United States increased by 33% year-on-year, and the average price of the whole fish sold in Chile to Shanghai, China increased by 41% year-on-year. Affected by the recovery of salmon prices, the company’s net profit attributable to the parent company in the first quarter was 110 million, a significant increase of 170.5% year-on-year, greatly exceeding market expectations. Among them, australis, the core subsidiary, realized a net profit of 189 million in a single quarter, with a year-on-year increase of 251.9%; The gross profit margin reached 18.96%, with a significant year-on-year increase of 27.21pct. Due to the significant rise in fish prices, the income from changes in the fair value of expendable biological assets was 166 million yuan, a year-on-year increase of 382.72%.
The company issued a fixed increase plan, the controlling shareholders intend to subscribe in full, and the capital structure is expected to be improved.
The company issued a fixed increase plan, which plans to raise 516773 million yuan, which will be fully subscribed by the controlling shareholder jiawo group, and will be used to supplement the working capital after deducting the issuance expenses. In 2022q1, the company’s financial expenses were 108 million yuan, a year-on-year increase of 37 million yuan; The asset liability ratio was 89.56%, with a year-on-year decrease of 4.47pct. This fixed increase will help reduce the company’s financial risks, improve the capital structure and help the company release profits.
The company has made efforts to make 3R prefabricated dishes to create a “new engine” for future growth.
The company mainly launched brands focusing on the household consumption segment, such as “mamabear”, “jiawo Xiansheng” and “greedy bear classmate”, and the sales of value-added products increased by 45% year-on-year in 2021. In 2022, the company will focus on five sales channels: distribution, retail, catering, monopoly and gift. China’s salmon market has high prices and fast growth. With the development of Chinese market, the gross profit margin of the company is expected to increase.
Earnings forecast, valuation and rating.
Affected by the sharp rebound in the prosperity of the salmon industry, the company raised its profit forecast. It is estimated that the company’s revenue from 2022 to 2024 will be RMB 5.721/69.45/8.451 billion respectively, with a year-on-year increase of 24.44% / 21.40% / 21.69% respectively; The net profit attributable to the parent company was 243 / 408 / 707 million yuan respectively, 184.21% / 67.96% / 73.20% year-on-year respectively; EPS is 0.57/1.64/2.62 yuan respectively. With reference to the 23-year average valuation level of comparable companies, the target price was maintained at 34.9 yuan and the “buy” rating was maintained.
Risk tips
Natural disaster risk; Exchange rate fluctuation risk; Food safety risks
