\u3000\u3 China Vanke Co.Ltd(000002) 216 Sanquan Food Co.Ltd(002216) )
Event: on April 19, the company released the first quarterly report of 2022. 22q1 achieved a revenue of 2.343 billion yuan, a year-on-year increase of + 0.49%; The net profit attributable to the parent company was 261 million yuan, a year-on-year increase of + 48.36%. The basic EPS is 0.30 yuan.
The improvement of channel and product structure has achieved initial results, and the profit has increased significantly year-on-year. On the revenue side, facing the adverse situation of downward demand in 2021, the company actively adjusted the stock products and channel structure and continued to launch new products. Affected by this, the income of 21q4 returned to growth; 22q1 continued the momentum of income recovery. The company actively arranges new channels and gradually releases new product reserves, and its future performance is expected to maintain steady growth. On the profit side, while optimizing the product structure, the company actively promoted fine management, resulting in a significant upward increase in the gross profit margin of 22q1 and a significant year-on-year increase in the net profit attributable to the parent company.
Product structure optimization and fine management increase gross profit margin, improve expense efficiency and reduce sales expense rate.
The gross profit margin of 22q1 company was 31.03%, with a year-on-year increase of + 2.38ppt, which was due to the optimization of product structure and the promotion of fine management, resulting in a decrease in costs and a significant improvement in operating efficiency.
The sales expense rate of 22q1 was 14.40%, with a year-on-year increase of -1.84ppt, which was due to the rapid growth of emerging channels and the improvement of delivery efficiency due to the fine management of market expenses. The management expense ratio was 2.21%, with a year-on-year increase of -0.17ppt. The R & D expense rate was 0.23%, with a year-on-year increase of + 0.03ppt. The rate of financial expenses was - 0.06%, with a year-on-year increase of + 0.06ppt, due to the decrease of interest income of daily idle funds and the increase of regular financial management.
The channel and product structure are continuously optimized, and the medium and long-term production capacity is fully prepared. Offline channels, 2021
The company focuses on retail terminals that are more convenient and closer to consumers, and actively explores cost-effective and high-quality products in farmers' market channels; The rinse and bake business increased the supply of customized products for large supermarkets and maintained a high growth; Fresh food business channel strategy is to strengthen the deepening cooperation with strategic partners. In terms of online channels, the company mainly relies on jd.com, tmall, dingdong shopping, meituan and other platforms to sell quick-frozen rice noodles and other products. It is expected that in the next 22 years, the company will still optimize different channels and strengthen the fine management of channels while improving the coverage of channels.
In terms of products, in 2021, the company launched cost-effective product series and high-quality product series, covering dumplings, dumplings, pastries, wonton, steamed buns, pancakes and other categories; Launch products such as thin skinned steamed stuffed buns and Hangzhou steamed buns focusing on breakfast scenes; Launch new products such as crispy pancakes and Shaxian style steamed dumplings. In terms of fresh food business, the company strengthened the R & D and innovation of rice, prepared noodles, salads, cooking bread and prefabricated dishes.
In terms of production capacity, the designed production capacity of the company at the end of 21 years was 769400 tons; The actual capacity is 654600 tons and the capacity under construction is 235000 tons. The capacity under construction will be put into operation as planned in the future, and the company has sufficient medium and long-term capacity reserves.
Investment suggestion: it is estimated that the company will achieve revenue of 7.992/91.36/10.396 billion yuan and net profit attributable to the parent company of 7.17/806908 billion yuan in 22-24 years, equivalent to EPS of 0.82/0.92/1.03 yuan respectively. At present, the corresponding share price of PE in 22-24 years is 23 / 20 / 18 times. The current valuation of the company is 31 times lower than the overall valuation level of the frozen food sector in 22 years. The company is a leading company in the frozen industry. In 2022, it will focus on the development of new categories and the layout of new channels, with good medium and long-term growth. Maintain a "recommended" rating.
Risk tip: Residents' consumption propensity decreases, cost increases exceed expectations, food safety problems, etc.
