\u3000\u3 China Vanke Co.Ltd(000002) 216 Sanquan Food Co.Ltd(002216) )
Event: the company released] the first quarterly report of 2022, realizing a revenue of 2.34 billion yuan, an increase of 0.5% year-on-year; The net profit attributable to the parent company was 260 million yuan, a year-on-year increase of 48.3%, and the net profit deducted from non attributable to the parent company was 240 million yuan, a year-on-year increase of 39.9%.
Q1 income grew steadily, and the epidemic repeatedly stimulated consumer demand. 22q1's revenue growth slowed down. On the one hand, it was affected by the early spring festival in 22 and the early channel preparation; On the other hand, due to the repeated epidemic in the country since March, the consumption scene has been limited in a short time. Looking forward to the second quarter, the C-end consumer demand will have obvious growth space due to the continuous impact of the epidemic, driving the high willingness of channel goods preparation; In addition, 21q2 has a low base effect due to the weak demand in the same period, and the company's performance is expected to be highly elastic.
The gross profit margin continued to rise, driving the improvement of profitability. In the first quarter of 2022, the company's gross profit margin was 31%, with a year-on-year increase of 2.4pp and a month on month increase of 1pp compared with 21q4. The increase in gross profit margin is mainly due to 1) the company's continuous promotion of product structure optimization and the increase in the proportion of high value-added products; 2) The cost of fine management of the company is reduced; 3) The price increase was conducted smoothly, which was caused by the increase of the average price of products. In terms of expense rate, the sales expense rate of 22q1 company was 14.4%, a year-on-year decrease of 1.8pp, mainly due to the company's continuous expansion of emerging markets and the improvement of market expense delivery efficiency under fine management. The management expense ratio remained stable, with a slight year-on-year decrease of 0.1pp to 2.2%. The cash flow performance was excellent, and the net operating cash flow of 22q1 increased by 248.8% year-on-year, mainly due to the fact that the sales collection in the current period was higher than that in the previous period and the decrease of superimposed goods preparation. The company actively carried out product structure upgrading, cost reduction and efficiency improvement, and the net interest rate of 22q1 increased by 3.6pp to 11.1% year-on-year.
Equity incentives have boosted enthusiasm, and the implementation of reform has been revitalized. 1) In terms of channels, the company will continue to promote channel reform and sinking. On the one hand, it will attack farmers' trade and low-line markets with the help of cost-effective products such as green label and fumanji; On the other hand, we will strengthen the development of new catering channels and continue to improve the penetration of catering channels. 2) In terms of products, rice noodles pay attention to cultivating new pastry products with great potential, and hot pot ingredients continue to increase the proportion of self-produced products on the basis of stabilizing the supply chain; In addition, the company continues to deepen cooperation with 711, HEMA and other platforms, and the fresh food business will maintain rapid growth. 3) The company implemented equity incentive at the end of the 21st year, with wide target coverage and steady growth target setting, which is conducive to deeply binding the future development of the company with the interests of the core management, effectively boosting the confidence and vitality of the team. The company's position as a leader in the industry can be gradually expanded in the next period of rapid freezing, and the company's performance can be improved in the future.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 0.82 yuan, 0.95 yuan and 1.06 yuan respectively, and the corresponding dynamic PE will be 20 times, 18 times and 16 times respectively, maintaining the "buy" rating.
Risk tips: raw material price fluctuation risk, covid-19 epidemic recurrence risk, and intensified industry competition risk.
