\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 882 Shanghai Milkground Food Tech Co.Ltd(600882) )
Events
In 2022q1, the revenue reached 1.286 billion yuan, a year-on-year increase of 35.2%, mainly due to the year-on-year increase of 49.59% in the sales revenue of high margin cheese products; The net profit was 81 million yuan, an increase of 101.17% at the same time; The net profit attributable to the parent company was 74 million yuan, an increase of 129.55% (the impact of amortization of equity incentive expenses has been considered), of which the profit and loss of minority shareholders accounted for 9.4%; The net profit deducted from non parent company was 69 million yuan, with a year-on-year increase of 118.1%.
Key investment points
Cheese business continued high growth and improved profitability
The cheese business revenue of 2022q1 company was 1.042 billion yuan, with a year-on-year increase of 49.59%. The growth rate has increased quarter by quarter since the third quarter of 21, accounting for 81.18% of the revenue; The income of liquid milk business was 89 million yuan, which decreased year-on-year due to the impact of the epidemic; The income from trade business was 153 million yuan, stable year-on-year. 22q1 gross profit margin was 38.82%, an increase of 0.14pct over the same period last year; The sales expense ratio was 24.81%, down 1.18 PCT from the same period last year; The net interest rate was 6.31%, an increase of 2.07pct over the same period last year.
Continue to launch new products and force the family dining table series
22q1 company’s new product plan continues: (1) instant nutrition series; After iterative upgrading, Q1 launched the online normal temperature cheese stick: small cheese cow cheese stick, which is rich in 55% cheese, 20% pure milk and 0 sucrose. (2) Family dining table series: start the nutritional breakfast project and launch a variety of products such as high-end cheese slices, which fit the breakfast scene. (3) Continue to strengthen the promotion, with a view to introducing more cheese products to consumers’ tables. Q1 launched golden upgraded cheese slices, with cheese content of 60%, 96% grass fed milk source, high calcium and high protein.
Increase the education of breakfast consumption scene and consolidate the position of the first brand
22q1 company continues to increase marketing and advertising efforts to consolidate the first brand position. 22q1 company broadcast a new cheese slice advertisement in focus to popularize the consumption scene of cheese slices. According to the data of Kaidu in 2021, Shanghai Milkground Food Tech Co.Ltd(600882) ranks first with a market share of 30.8%; In addition, according to Euromonitor statistics, Shanghai Milkground Food Tech Co.Ltd(600882) ranked first with 27.7% in 2021.
Profit forecast and valuation
We believe that the company is expected to fully benefit from the high growth of the cheese market and consolidate its leading position. It is estimated that the company’s revenue from 2022 to 2024 will be RMB 6.64 billion, RMB 8.34 billion and RMB 9.03 billion respectively; The net profit attributable to the parent company was 480 million yuan, 670 million yuan and 810 million yuan respectively; The corresponding PE is 39, 28 and 23 times respectively, maintaining the buy rating.
Risk warning: the movable sales are not as expected; Increased competition; The penetration rate of other cheese products was lower than expected
