\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 298 Angel Yeast Co.Ltd(600298) )
Event: the company released the first quarterly report of 2022, realizing an operating revenue of 3.032 billion yuan, a year-on-year increase of 14.14%, and a net profit attributable to the parent company of 313 million yuan, a year-on-year decrease of 29.30%.
The price increase superimposed on the high growth rate of overseas business, and the revenue growth was steady. The company achieved an operating revenue of 3.032 billion yuan in the first quarter, a year-on-year increase of 14.14%. Against the background of high base last year, the company’s revenue achieved steady growth. We believe that the main reasons are: 1) the contribution of price increase in the fourth quarter of last year; 2) The company’s overseas business grew rapidly, reaching 834 million yuan in the first quarter, a year-on-year increase of + 16%; 3) The company continued to expand its derivatives business, and achieved an increase of more than 20% in microbial nutrition, plant nutrition and other fields in the first quarter.
In terms of business, the company’s yeast and deep-processing products / sugar products / packaging products / dairy products / other businesses achieved revenue of 2.207/3.63/1.07/0.16/309 billion yuan respectively, with a year-on-year increase of 4% / 161% / 9% / 24% / 18%. The slow growth of yeast main business is related to the high base of last year and the impact of the epidemic in the first quarter. From a subregional perspective, the company achieved a revenue of RMB 2.167834 billion in China / abroad in the first quarter, with a year-on-year increase of + 13% / 16%. Under the background of epidemic and war, the situation of the global molasses supply chain has changed. The company seized the window period and realized the rapid growth of overseas business by increasing market development. In terms of sales channels, offline / online channels were + 18% / 7% year-on-year respectively, and offline channels were expanded smoothly. In Q1, there were 1183 / 553 Chinese / foreign dealers respectively year-on-year. The company continued to increase channel expansion and promote the refined operation of channels.
The cost is still high, and the profit side of the company is under pressure. In the first quarter, the company realized a net profit attributable to the parent company of 313 million yuan, a year-on-year decrease of 29.30%, and the profit was under pressure. We believe that the main reasons are: 1) the base number in the same period last year is high; 2) Molasses, shipping and other costs continue to rise at a high level, and the gross profit margin is under pressure. The gross profit margin of the company in the first quarter was 26.68%, down 6.56pcts from the same period last year. At present, the company’s molasses cost is maintained at 1 Cecep Environmental Protection Equipment Co.Ltd(300140) 0 yuan. We believe that subsequent companies are expected to stabilize cost fluctuations through glycogen substitution and molasses storage tanks. 3) The cost increased during the period. The Q1 sales / management / R & D expense ratio of the company was 6.68%/3.21%/3.95% respectively, with a year-on-year increase of +0.5/0.23/0.06pct. The expense ratio increased slightly, achieving a net interest rate of 10.45% and a year-on-year decrease of 6.46pcts.
The 14th five year plan shows confidence and the competitiveness of the company is expected to continue to improve. Throughout the year, the cost price difference of the company’s molasses is expected to narrow quarter by quarter, and the price increase dividend is expected to be released quarter by quarter. Superimposed on the continuous layout of global production capacity and the active promotion of derivatives business, the profit side of the company may show a trend of accelerating quarter by quarter. In the long run, the 14th five year plan of the company’s revenue side is accelerated, with a planned sprint of 20 billion yuan, with a compound growth rate of about 17%, showing a steady growth trend as a whole. We believe that on the one hand, the company ensures China’s growth through capacity expansion and product structure adjustment; On the other hand, we will increase the development of overseas markets and seize the current window period through the layout of channel network and the cultivation and binding of dealers. The competitiveness of the company is expected to continue to improve with the layout of globalization. In addition, the company will continue to increase the global layout of production capacity through fixed growth and other financing methods to support the steady growth of the company’s revenue.
Profit forecast: the company is expected to achieve revenue of 12.7/14.8/17.3 billion yuan in 22-24 years, with a year-on-year increase of 18.99% / 16.28% / 17.36%, net profit of 14.28/17.89/2.320 billion yuan, with a year-on-year increase of 9.16% / 25.24% / 29.67%, and EPS of 1.72/2.15/2.79 yuan respectively, maintaining the “buy” rating of the company.
Risk warning: macroeconomic downside risk; Covid-19 epidemic risk; Risk of rising costs
