\u3000\u30 Fawer Automotive Parts Limited Company(000030) 30 Zuming Bean Products Co.Ltd(003030) )
Key investment points
Event: the company released its 2021 annual report and the first quarterly report of 2022. In 2021, the company achieved revenue of 1.34 billion yuan (+ 9.1%) and net profit attributable to parent company of 55.72 million yuan (- 44.8%), of which revenue of 370 million yuan (+ 12.1%) and net profit attributable to parent company of 21 Q4 in a single quarter were 12.91 million yuan (- 45.8%). At the same time, it is proposed to distribute a cash dividend of 1.50 yuan (including tax) for every 10 shares. In 2022q1, the company achieved a revenue of 340 million yuan (+ 11.1%) and a net profit attributable to the parent company of 7.76 million yuan (- 37.1%).
Together with the 2022 Asian Games, the product structure continued to upgrade. 1. By category, the income of fresh bean products reached 890 million yuan, an increase of 8.5% year-on-year, mainly driven by the increase of ton price. It focuses on the introduction of Mai series tofu adopting Japan’s fully automatic standardized production line and organic products produced by northeast organic soybeans; Vegetable protein drinks achieved an income of 210 million yuan, with a year-on-year increase of 24.4%. The high value-added whole soybean milk complies with the consumption trend of low sugar, low fat and health. In addition, the company will become a supplier of bean products for the 2022 Asian Games, and its brand strength will continue to improve. 2. In terms of channels, the distribution mode, direct selling mode and business supermarket mode achieved revenue of 860 million yuan (+ 11.8%), 140 million yuan (+ 33%) and 320 million yuan (- 7.1%) respectively. By the end of 2021, the company had 1453 distributors, with a net increase of 10.
The cost of raw materials rose and profitability declined. 1. The overall gross profit margin was 26.4%, with a year-on-year decrease of 6.8pp, mainly due to the rising price of raw materials and operating costs. The company raised the price of some products, which still could not fully cover the cost pressure. 2. In terms of expense rate, the sales expense rate was 14.6%, a year-on-year decrease of 0.6pp; The rates of administrative expenses and R & D expenses were 4.8% and 0.7% respectively, which remained basically stable; The financial expense rate was 0.4%, a year-on-year decrease of 0.9pp, mainly due to changes in exchange rate and loan interest rate. The overall net interest rate was 4.2%, a year-on-year decrease of 4.1pp, mainly due to the low cost base in 2020 due to the impact of national preferential policies, which returned to normal in 21 years.
The nationwide expansion continued, and the leading advantage of bean products continued to consolidate. The company continues to promote the process of national expansion, and has successively signed cooperation framework agreements with Nanjing fruit food, Guizhou longyuansheng soybean industry and Taiyuan golden soybean food to make equity investment in the three enterprises; At the same time, it is planned to invest 300 million yuan in the construction project of bean products production base in Wuhan. 1. Through management output and mode grafting, enhance the influence of the invested enterprises, and the company can also quickly expand new markets by using the existing resources of local brands; Local famous brands + ancestral brands operate together to lead the development of bean products industry. 2. In the future, the company will continue to expand in different places in the mode of equity investment, give priority to the Yangtze River Delta, Beijing Tianjin Hebei, the Pearl River Delta and the capital cities of central China, continue to consolidate the company’s leading position in the bean products industry, and further strengthen the medium and long-term development logic.
Profit forecast and investment suggestions. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 77.3 million yuan, 86.96 million yuan and 97.45 million yuan respectively, EPS will be 0.62 yuan, 0.70 yuan and 0.78 yuan respectively, and the corresponding dynamic PE will be 38 times, 34 times and 30 times respectively, maintaining the “buy” rating.
Risk tip: soybean prices continue to rise; The implementation of the project may not be as expected.
