\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 298 Angel Yeast Co.Ltd(600298) )
Key investment points
Event: the company realized a revenue of RMB 3.032 billion in 2022q1, with a year-on-year increase of 14.14%; The net profit attributable to the parent company was 313 million yuan, a year-on-year increase of – 29.30%; The net profit attributable to the parent company after non deduction was 265 million yuan, a year-on-year increase of – 36.09%. The profit in the first quarter decreased significantly, mainly due to the increase in the cost of molasses and main raw materials and the increase in expenses during the period.
Price increases affect short-term sales and actively respond to the situation in Russia and Ukraine. In 2022q1, the company achieved a main business income of 3.002 billion yuan, a year-on-year increase of 14.08%. In terms of products, in 2022q1, the revenue of yeast and deep-processing products reached 2.207 billion yuan, a year-on-year increase of 4.16%, mainly due to the certain impact on short-term sales after the price increase of Chinese products. The company has focused on major industrial customers, strengthened application technology services, and achieved more than 20% growth in microbial nutrition, plant nutrition and other fields. The income from sugar making, packaging, dairy products and other main industries was RMB 363 million, 107 million, 16 million and 309 million respectively, with a year-on-year increase of 160.76%, 8.85%, 23.87% and 17.96% respectively. In terms of channels, offline and online channels in 2022q1 achieved revenue of RMB 1.965 billion and 1.037 billion respectively, with a year-on-year increase of 18.32% and 6.84% respectively. By region, in 2022q1, China and foreign countries achieved revenue of RMB 2.167 billion and 834 million respectively, with a year-on-year increase of 13.23% and 16.38% respectively. The company gave full play to the role of local employees of six overseas business units, deeply integrated into regional markets and actively responded to the tension between Russia and Ukraine. 2022q1 has a net increase of 175 to 20380 dealers, including 13 and 162 in China and abroad respectively.
The gross profit margin of raw materials is under pressure, and the increase of superimposed expense rate affects the profit. In 2022q1, the gross profit margin of the company decreased by 6.56 PCT to 26.68% year-on-year, mainly due to: (1) the increase in the cost of molasses and main raw materials; (2) The proportion of sugar business income with low gross profit margin in the current period increased significantly. In 2022q1, the company’s sales, management, R & D and financial expense rates were + 0.50, + 0.23, + 0.06 and + 0.72 PCT respectively to 6.68%, 3.21%, 3.95% and 0.99% year-on-year. The increase of financial expense rate is mainly due to the increase of interest expense and exchange loss. Overall, the net profit margin of 2022q1 decreased by 6.46 PCT to 10.45% year-on-year.
Profit forecast: facing the pressure of sharp rise in raw material costs, the company adjusted its market strategy in time and adjusted the product price in a planned and step-by-step manner. The short-term price increase has a certain negative impact on the company’s product sales. With the gradual completion of digestion and transmission at the terminal, the marginal impact weakens. At the same time, the cost of molasses used in the first quarter is high, which has a great impact on the gross profit margin. Subsequently, with the gradual decline of molasses cost, the profit is expected to improve. As the leader of yeast in China, the company’s share is expected to continue to increase. At the same time, its overseas business expanded rapidly and actively responded to the situation in Russia and Ukraine. Its overseas revenue maintained a good growth trend. We expect that the company’s revenue from 2022 to 2024 will be RMB 12.620 billion, RMB 14.489 billion and RMB 16.569 billion respectively, the net profit attributable to the parent company will be RMB 1.380 billion, RMB 1.744 billion and RMB 2.217 billion respectively, and the EPS will be RMB 1.66, RMB 2.09 and RMB 2.66 respectively, corresponding to 24 times, 19 times and 15 times of PE, maintaining the “buy” rating.
Risk warning events: repeated global epidemics and slowing economic growth; Food safety risks; Molasses price fluctuation; Price fluctuation of export sea freight
