\u3000\u30003 Guangdong Hongda Blasting Co.Ltd(002683) 00268)
Key points of the report:
The company is a high-quality protein food enterprise with salmon as the core product
Joyvio Food Co.Ltd(300268) is mainly engaged in the breeding, processing and sales of high-quality protein seafood, and deeply grasp the upstream scarce resources of high-quality seafood protein represented by salmon. The products mainly include high-quality seafood products such as salmon, Arctic sweet shrimp, narrow cod, true COD and halibut. Benefiting from the recovery of salmon terminal market demand and sales price, the company’s profit increased significantly. In 2022q1, the company achieved a revenue of 1.223 billion, a year-on-year increase of 6.2%; The net profit attributable to the parent company was 110 million, a year-on-year increase of 170.5%.
The controlling shareholder intends to subscribe for fixed growth in full, optimize the financial structure and demonstrate growth confidence
The controlling shareholder of the company is jiawo group. Recently, the company issued a non-public offering plan. It plans to raise 516773million yuan, which will be fully subscribed by jiawo group to supplement working capital. The fixed increase will help reduce the company’s financial risk, improve the company’s capital structure and help the company release profits, with high certainty of future growth.
Salmon industry has a tight balance between supply and demand for a long time, and fish prices are expected to remain high
Salmon demand will continue to rise due to the trend of consumption upgrading. In 2021, the global consumption of salmon was about 2.86 million tons, with a year-on-year increase of 8%. The salmon breeding industry is constrained by the strict breeding environment and license supervision, and the industry concentration continues to increase. In 2021, the global harvest of salmon was about 2.82 million tons, with a year-on-year increase of 4%. In the future, the average annual growth rate of global salmon supply will slow down to 4%. The salmon industry will be in a tight balance between supply and demand for a long time, which will keep the salmon price at a high level.
The company grasps scarce resources, strictly controls the quality of core categories, and builds a deep moat
Austra is the top ten companies in the upper reaches of the Chilean culture chain with the highest value of acquiring high-quality salmon. The company operates an integrated whole industry chain from egg incubation, fresh water seedling raising, mariculture, harvest and processing to brand sales. It has sufficient processing and production capacity in Chile, of which 72000 ton intelligent processing plant is planned to be completed in March 2022 to further reduce costs and increase efficiency. On the channel side, the company adheres to the global diversified omni-channel sales system layout, focuses on the Chinese market, and launches “greedy bear” to cut into China’s high boom 3R prefabricated food field. In the future, the company will continue to promote category expansion, enrich product matrix and help release the company’s performance.
Investment advice and profit forecast
Benefiting from the recovery of salmon prices, the company’s performance will maintain a high growth rate and high certainty in the future. We estimate that the company’s revenue from 2022 to 2024 will be RMB 5.665 billion / 6.951 billion / 8.398 billion respectively, with a year-on-year increase of 23.22% / 22.72% / 20.81%; From 2022 to 2024, the net profit attributable to the parent company was 238 / 406 / 702 million yuan, with a year-on-year increase of 182.55% / 70.17% / 73.20%. The corresponding EPS from 2022 to 2024 were 1.37/2.33/4.03 yuan respectively, and the corresponding PE of the current stock price was 19.3/11.3/6.6 times respectively. The “buy” rating was given for the first time.
Risk tips
Risk of market price fluctuation of raw materials and products, risk of continuous fermentation of epidemic situation, risk of failure to meet expectations in new business development, risk of change in fair value of consumable biological assets and risk of natural disasters
