\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 73 Petpal Pet Nutrition Technology Co.Ltd(300673) )
Event:
The company released its 2021 annual report, which showed that the company achieved a revenue of 1.270 billion yuan, a year-on-year decrease of 5.15%; The net profit attributable to the parent company was 60 million yuan, a year-on-year decrease of 47.73%; The non net profit deducted was 56 million yuan, a year-on-year decrease of 48.17%.
Comments:
Affected by covid-19 epidemic and exchange rate, the company’s revenue and net profit attributable to the parent decreased
In 2021, the company’s revenue and net profit attributable to the parent company decreased. Affected by the epidemic, the company’s Vietnam factory was temporarily suspended since early August 2021 and resumed production in late October 2021. The production capacity of Vietnamese factories accounted for about half of the company’s production capacity during the reporting period, which had a great impact on the company’s revenue and profits. At the same time, some orders have been transferred from Vietnamese factories to Chinese factories. Chinese factories have high costs and are affected by Sino US trade tariffs, which affects the profitability of these orders. In 2021, the RMB continued to appreciate against the US dollar, resulting in the company’s exchange loss of 225719 million yuan in 2021, accounting for 37.61% of the current net profit.
Two wheel drive to develop markets at home and abroad, Wuxi Online Offline Communication Information Technology Co.Ltd(300959) dual mode to expand independent brands
The company adopts the “two wheel drive” development strategy. On the basis of stable R & D and manufacturing in China, the company arranges production bases overseas, makes use of local advantages and adopts ODM mode to OEM well-known brands, so as to stabilize the company’s leading position in pet chewing food in the world. In the Chinese market, the company adopts the mode of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) combination, mainly selling independent brands, supplemented by acting as an agent for foreign brands, so as to realize the complementary advantages of the two modes and channels, expand the sales scale, reduce the sales expense rate and improve the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) synergy.
Profit forecast and investment suggestions
It is estimated that the revenue in 22-23 years will be 1.608/2.061 billion yuan (original value: 2.101/2.678 billion yuan), and the net profit attributable to the parent company will be 161 / 223 million yuan (original value: 222 / 294 million yuan). Meanwhile, it will increase the 24-year profit forecast that the revenue will be 2.517 billion yuan, the net profit attributable to the parent company will be 279 million yuan, and the EPS will be 0.64/0.88/1.10 yuan / share respectively, and the corresponding PE will be 24 / 18 / 14 times respectively. Referring to the historical valuation center of the company and the average valuation of comparable companies, the company will be given 30xpe in 2022 with a target price of 19.2 yuan, Maintain the “buy” rating.
Risk warning: raw material price fluctuation risk; Overseas operation risk; Impact of exchange rate changes
