\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 73 Petpal Pet Nutrition Technology Co.Ltd(300673) )
Core view:
The event company issued the annual report of 2021 and the report of the first quarter of 2022.
The epidemic affected the company’s performance. In 22q1, the company’s revenue recovered and increased by 1.271 billion yuan in 21 years, with a year-on-year increase of – 5.15%, including 432 million yuan, 396 million yuan and 253 million yuan respectively from animal skin chewing gum, plant chewing gum and nutritious meat snacks, with a year-on-year increase of – 3.27%, – 7.50% and – 10.49%; The net profit attributable to the parent company was 60 million yuan, a year-on-year increase of – 47.73%; The net profit attributable to the parent company after deduction was 56 million yuan, a year-on-year increase of – 48.17%. The company’s comprehensive gross profit margin was 22.93%, with a year-on-year increase of -2.58pct, mainly due to the shutdown of Vietnamese factories caused by the epidemic, and some orders were transferred to Chinese factories. The production costs and tariffs affected the profitability of the company. In addition, the exchange loss of the company in 21 years was 225719 million yuan, accounting for 37.61% of the net profit. The company’s expense ratio during the period was 16.83%, with a year-on-year increase of + 1.65 PCT, mainly due to the large increase in the company’s management expenses. In 2022q1, the company’s operating revenue was 343 million yuan, a year-on-year increase of + 7.03%; The net profit attributable to the parent company was 29 million yuan, a year-on-year increase of + 22.12%; The net profit attributable to the parent company after deducting non profits was 29 million yuan, a year-on-year increase of + 33.71%; The gross profit margin of sales was 24.66%, with a year-on-year increase of + 2.73pct; The expense rate during the period was 12.75%, with a year-on-year increase of -0.29 PCT, of which the R & D investment was 06 million yuan, with a year-on-year increase of + 32.28%. Dividend plan: cash dividend of 0.3 yuan (including tax) for every 10 shares.
Vietnam factory is the core profit contributor, and the overseas production capacity climbs to promote the performance growth. In the past 21 years, the company’s overseas and Chinese contribution revenue were 1.061 billion yuan and 210 million yuan respectively, with a year-on-year increase of – 7.03% and + 5.62%; Its proportion in revenue was 83.45% and 16.55% respectively, of which China business accounted for + 1.69pct. In the past 21 years, the Vietnamese factory of the company was affected by the epidemic, and its production capacity accounted for about 50% of the company. However, in terms of profitability, Vietnam haochew and Balala are still the main profitable factories of the company, with a net profit of 109 million yuan. In addition, part of the “new project with an annual output of 9200 tons of pet leisure food” implemented by chewy in Cambodia entered trial production in the second half of 21, and the overall production capacity is in the climbing stage. At present, the Vietnamese factory has fully resumed work. In the later stage, with the improvement of scale effect and management efficiency and the superposition of large cost advantages, the project will play a positive role in improving the company’s performance.
Entering the new field of main wet grain and strengthening its own brand operation, the company’s main grain and wet grain revenue in the past 21 years was 150 million yuan, a year-on-year increase of + 21.46% and a gross profit margin of 17.69%; The proportion of revenue increased slightly, mainly because the company built its own main grain production line and put it into operation to improve production capacity. In terms of production capacity, the company’s fund-raising and investment project “40000 tons of high-quality pet dry food project per year” implemented in North Island town and natural pure in New Zealand is in the construction period. With the release of production capacity in the later stage, it will help the growth of the company’s dry food business. In addition, in the Chinese market, in order to shape its own brand, the company listed the operation of new media channels as a priority in 21 years; In 22 years, the company will take the establishment of private domain traffic as a key project and strengthen its own brand operation; On the whole, the company adopts the mode of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) combining with to open the sales of its own brands, supplemented by acting as an agent for foreign well-known brands.
Investment suggestions: with the continuous operation of foreign new projects, the company’s production capacity will be improved, which has a positive effect on the improvement of performance; In addition, with the promotion of brand building in the Chinese market, the proportion of the company’s Chinese business and performance contribution will gradually increase. We expect that the company’s EPS from 2022 to 2023 will be 0.46 and 0.61 yuan respectively, corresponding to 33 and 25 times of PE, maintaining the “recommended” rating.
