\u3000\u30003 Guangdong Hongda Blasting Co.Ltd(002683) 00268)
Events
On April 18, Joyvio Food Co.Ltd(300268) released the report for the first quarter of 2022. The revenue in the first quarter of 2022 was 1.223 billion, with a year-on-year increase of 6.2%; The net profit attributable to the parent company was 110 million, with a significant year-on-year increase of 170.5%.
Comments
The value of core assets was highlighted, and the profit increased significantly in the first quarter. Since 2022, benefiting from the recovery of salmon terminal market demand and sales price, the company’s overall profit has increased significantly, mainly due to the significant recovery of the profit of Chile subsidiary australis (net profit + 251.9% year-on-year), the stable growth of the performance of its subsidiary Qingdao Guoxing (net profit + 332.6% year-on-year) and the continuous development of 3R prefabricated dish series products. At the same time, due to the rise in the fair value of consumptive biological assets market, the income from changes in fair value reached 166 million yuan, a year-on-year increase of 382.72%
The situation of tight supply and booming demand continues, and the fish price is expected to be strong throughout the year. In 2020, affected by the epidemic, the global price of salmon fell significantly. The average sales price of salmon in australis seafoods S.A. decreased by 23.34% compared with 2019. Since 2021, the demand of salmon consumer market has gradually warmed up, and the global salmon market price has rebounded. In 2022, the tight supply and booming demand of salmon continued to support the continuous rise of fish prices. According to the NASDAQ salmon index, as of April 20, the NASDAQ salmon index was 101.63nok/kg, up 40.51% in three months. At present, the issuance of salmon breeding licenses is tightened, the pressure on the upstream supply side and the strong recovery of demand. The fish price is expected to remain strong in 2022.
Cost reduction and efficiency increase have been continuously promoted, and the company has broad growth space. The company continues to promote management optimization, cost reduction and efficiency increase, and invests in the rough processing plant in zone 12, with an annual processing capacity of about 72000 tons. We expect that with the trial operation of the rough processing plant at the end of March 2022, the company can effectively reduce costs. On April 13, the company issued a non-public additional issuance plan, and the work related to debt to equity swap was carried out simultaneously and continuously. The company’s financial structure is expected to be optimized, the cash flow situation is expected to be improved, and the financial expenses are expected to be reduced to release the company’s profit elasticity. The Chinese market continues to develop, and the blue ocean market has broad growth space. The company plans to explore the Chinese market from six dimensions: products, brands, supply chain, Chinese business collaboration, upgrading of food materials to food, and sales channels. In the post epidemic era, under the favorable environment of industry recovery, the development of the Chinese market is expected to improve the company’s performance level and profitability.
Investment advice
Affected by the strong recovery of salmon demand. Raise the company’s profit forecast. From 2022 to 2024, the company’s net profit attributable to the parent company will be RMB 216 / 371 / 645 million respectively, corresponding to EPS of RMB 1.24/2.13/3.71. Considering that the salmon price is expected to continue to rise and the costs of financial expenses and feed raw materials are gradually falling, it is expected that the company’s performance elasticity is expected to continue to be released and maintain the “recommended” rating.
Risk tips
Repeated outbreaks; Salmon disease risk; Food safety risk
