\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 73 Petpal Pet Nutrition Technology Co.Ltd(300673) )
Event 1: the company released its 2021 annual report, realizing an operating revenue of 1.271 billion yuan, a year-on-year decrease of 5.15%, and a net profit attributable to the parent company of 60.02 million yuan, a year-on-year decrease of 47.73%. Event 2: the company released the first quarterly report of 2022, realizing an operating revenue of 343 million yuan, a year-on-year increase of 7.03%; The net profit attributable to the parent company was 285491 million yuan, a year-on-year increase of 22.12%; Deduct non net profit of RMB 292692 million, with a year-on-year increase of 33.71%.
The adverse factors affected by the epidemic in 21 years have been eliminated, and the large-scale new production capacity is expected to contribute to profits
Since August 2021, the Vietnamese factory of the company has temporarily stopped production in early August in response to the local epidemic control requirements, affecting the time for up to one quarter. Affected by this, the company's Q3 and Q4 revenue / profit decreased significantly. In late October 2021, the epidemic situation improved, the company's factories resumed production one after another, the company's orders were delivered on time in 22 years, the revenue continued to grow, and the production capacity was guaranteed. The profitability of Q1 company has recovered significantly in 22 years. The gross profit margin of 22q1 reached 24.66% (an increase of 2.73 PCT over the same period last year), and the net profit margin reached 8.47% (an increase of 1.04 PCT over the same period last year).
Progress has been made in the company's new projects of 40000 tons of high-quality pet dry food per year in New Zealand and 9200 tons of pet snack food per year in Cambodia. Among them, the new project of pet snack food in Cambodia was put into trial production in Q3 in 21, and the profit and loss balance has been basically achieved in December. The factory in Cambodia is in the stage of capacity climbing, with obvious cost advantages in Cambodia, which is expected to continuously improve the company's overall profitability; The new high-quality pet dry food project in New Zealand is expected to be put into operation in 2022, providing capacity support for the development of the company's staple food business. In the long run, the company relies on its strong product power and unique ODM model to achieve deep binding with many overseas customers. With the increase of sales volume of downstream major customers and the development of new products and new customers, the company's overseas performance is expected to achieve sustained growth, and is expected to maintain an increase of more than 20% in the long run.
Independent brands, focusing on the growth of the Chinese market
In the Chinese market, in 2021, the company focused on the creation of "haoshijia" and other brands, launched a series of products such as Shuangpin grain and canned staple food, and further increased channel promotion and brand investment. During the "double 11" period in 2021, the total sales of the company's stores exceeded 15 million, and Patty's flagship store increased by 300% year-on-year. Smartbones ranked eighth in the sales ranking of dog snack brands on November 1. Patty Zhichuang, a wholly-owned subsidiary undertaking China's private brand business, has achieved an annual revenue of 72.57 million yuan in 21 years, with a year-on-year increase of 28.86%. The company's market expansion in China has achieved results. We expect the company's revenue in China to accelerate in 2022.
We expect that the company's revenue from 2022 to 2024 will be RMB 1.637/20.472466 billion, with a year-on-year increase of 28.79% / 25.07% / 20.46%; The net profit attributable to the parent company was 149 / 210 / 240 million yuan, with a year-on-year increase of 148.51% / 41.08% / 14.03%. The company's "two wheel drive" strategy has been steadily promoted, and the volume of Chinese independent brands can be expected to maintain the "buy" rating.
Risk warning: the risk of shutdown caused by epidemic situation; Risks of Chinese market development; Overseas business risks; Risk of fluctuation of raw materials; Risk of exchange rate fluctuation
