\u3000\u30 Fawer Automotive Parts Limited Company(000030) 30 Zuming Bean Products Co.Ltd(003030) )
Zuming Bean Products Co.Ltd(003030) 2021 annual report and the first quarterly report of 2022: in 2021, the company achieved a revenue of 1.34 billion yuan, a year-on-year increase of + 9.1%, and a net profit attributable to the parent company of 56 million yuan, a year-on-year increase of – 44.8%. In the first quarter of 2022, the company achieved a revenue of 340 million yuan, a year-on-year increase of + 11.1%, and a net profit attributable to the parent company of 08 million yuan, a year-on-year increase of – 37.1%. It is proposed to pay a dividend of 1.5 yuan for every 10 shares.
Strong demand resilience, and regional expansion outside the province has become a new bright spot. In 2021, the company achieved a revenue of 1.34 billion yuan, a year-on-year increase of + 9.1%, and Q4 achieved 374 million yuan, a year-on-year increase of + 12.1%. In 2022, Q1 continued its growth trend, a year-on-year increase of + 11.1%. The company is a guarantee enterprise for the “vegetable basket” of people’s livelihood, and the fresh products themselves have the property of rigid demand, and the performance maintained steady growth. In 2021, the revenue of fresh bean products reached 890 million yuan, a year-on-year increase of + 8.5%, and the demand toughness was strong. The revenue of plant protein drinks reached 209 million yuan, a year-on-year increase of + 24.39%. The increase in growth was due to the recovery of consumption scenes affected by the epidemic, such as breakfast, and the expansion of bottled soybean milk to “support yourself”. In terms of sub regions, Zhejiang / Jiangsu / Shanghai / other regions of China have achieved 64.1% / 18.7% / 12.0% / 4.8% of revenue respectively, with a year-on-year increase of + 6.6% / + 9.4% / + 11.0% / + 45.5% respectively. Channel expansion outside Zhejiang has contributed to new growth in performance. At the same time, the layout of Shanghai and Anhui markets and covering other regions of the country through M & A and plant construction have also become an important driving point for the company in the future. From the perspective of sales model, distributors / supermarkets / direct sales account for 64.6% / 23.8% / 11.6% respectively, with a year-on-year increase of + 11.8% / – 7.1% / + 40.8% respectively. In the future, on the basis of maintaining the advantages of distribution channels, we will focus on direct sales channels such as catering and group meals.
The short-term rise in soybean prices squeezed the profit space, and the cost rate remained relatively stable. The profit fell by 44.8% in the past 21 years, mainly due to the high base under the epidemic situation in the past 20 years. The company guaranteed the supply of people’s livelihood and achieved rapid growth in revenue. At the same time, the high-speed toll reduction, social security reduction and water and electricity price reduction at the expense side jointly released the profit space; The cancellation of various relief policies in 21 years has led to a sharp rise in soybean procurement costs and energy prices. In 2021, the company’s gross profit margin was 26.1%, year-on-year -7.1pct, and 22q1’s gross profit margin was 23.9%, year-on-year -5.0pct. The decline of gross profit margin was mainly due to the rise of soybean purchase price. At present, the increase of soybean price has decreased significantly, and H2 is expected to usher in a marginal decline. In 2021, the company’s expense rate during the period was 20.6%, with a year-on-year rate of -1.41pct, of which the expense rates of sales / management / R & D / finance were 14.6% / 4.8% / 0.7% / 0.4% respectively, and the expense rate during 22q1 was 20.7%, with a year-on-year rate of -2.2pct.
The income is expected to accelerate again in 22 years, and the expansion of soybean planting area is expected to drive the improvement of profit space. Looking forward to 2022, the company is expected to achieve double-digit growth, mainly due to (1) increasing the marketing promotion in Shanghai and Anhui, which account for a relatively low proportion, at the regional level. (2) At the channel level, focus on the development of catering and group meal business to achieve large volume at the b-end; Further sort out the farmers’ markets and wholesale markets in Jiangsu, Zhejiang and Shanghai, and encrypt the terminal sales outlets; The supermarket channel is squeezed by the new retail and community convenience stores. In the future, it will expand in scale with the opening of new retail stores. (3) At the product level, SKUs are streamlined on the basis of more than 400 single products to achieve large-scale development. It is expected that the subsequent net interest rate will improve marginally, mainly due to: (1) the cost decline. From January to April, the national soybean market price is basically flat, with a year-on-year increase of + 3.4%, which is significantly slower than the year-on-year increase of + 18.1% / + 14.1% in 2020 / 2021. With the expansion of soybean planting area in Northeast and Inner Mongolia, the soybean price is expected to decline marginally in H2. (2) Price increase: on November 15, 2021, the company raised the price of drinks by 15% – 20%, and drinks accounted for 15.6% in 21 years. The release of price increase bonus is expected to promote the profit increase in 22 years.
Merger and acquisition + Construction of factories in other places to promote the national layout, and Wuhan factory is “the next city”. The ancestral name has a certain brand awareness in the Yangtze River Delta, and is also realizing the national layout through mergers and acquisitions and the construction of factories in other places. (1) Merger and acquisition: the company acquired a soybean product factory in Yangzhou in 2008, which has formed a revenue scale of nearly 100 million. In 2022, it will focus on the relocation and construction of Yangzhou factory. In 2021, it reached equity investment with Nanjing Guoguo and Guizhou longyuansheng. At present, it has assisted them in digital management upgrading, and dispatched production and sales personnel to help improve quality control and strengthen market expansion. It is expected that the “Yangzhou experience” will be replicated again in North China, the Pearl River Delta and other regions and large cities in the mainland to achieve rapid expansion in other places. (2) In 2010, the company built Anji factory, equipped with high-end production lines in Japan, which has become the most important production base of the company. In March, Wuhan factory was jointly built with Wuhan Jiangxia economic development zone government to expand “the next city” in other places.
Investment suggestion: it is estimated that the company will achieve revenue of RMB 1.548/1.768/2.060 billion from 2022 to 2024, with a year-on-year increase of + 15.8% / + 14.2% / + 16.5%; The net profit attributable to the parent company was 58 / 88 / 117 million yuan, with a year-on-year increase of + 4.0% / + 52.5% / + 32.6%, EPS of 0.46/0.71/0.94 yuan and corresponding PE of 51x / 33x / 25X respectively. Considering the steady development of the company’s main business and the performance growth potential brought by remote expansion, the “recommended” rating is maintained.
Risk tips: the cost is rising rapidly, the expansion in other places is less than expected, and the food safety risk
