\u3000\u3 China Vanke Co.Ltd(000002) 299 Fujian Sunner Development Co.Ltd(002299) )
The event company issued its annual report for 2021.
In 2021, the company’s operating revenue was 14.478 billion yuan, a year-on-year increase of + 5.34%, of which the chicken and meat products business contributed 8.928 billion yuan and 4.646 billion yuan respectively, a year-on-year increase of + 0.63% and + 13.94%. The net profit attributable to the parent company was 448 million yuan, a year-on-year increase of – 78.04%; Excluding external factors of RMB 1.2 billion, the net profit of the company will increase by about 1.3% year-on-year. The net profit attributable to the parent company after deduction was 364 million yuan, a year-on-year increase of – 82.08%. The company’s comprehensive gross profit margin was 8.71%, with a year-on-year increase of -11.59pct; The proportion of expenses during the period was 5.23%, with a year-on-year increase of + 0.66pct. In 2021q4, the company’s operating revenue was 4.010 billion yuan, a year-on-year increase of + 5.68%; The net profit attributable to the parent company was 80 million yuan, a year-on-year increase of – 66.06%; The net profit attributable to the parent company after deduction was 18 million yuan, a year-on-year increase of – 92.80%. The gross profit margin of sales was 7.22%, with a year-on-year increase of -2.16pct. The proportion of expenses during the period was 5.55%, with a year-on-year increase of + 3.86pct. In 2021, affected by the sharp rise of feed prices such as corn and soybean meal, the breeding cost increased significantly; Combined with the impact of covid-19 epidemic, the consumption growth is weak, and the sales price of chicken remains depressed. The dual factors jointly lead to the loss of the industry. The industry downturn will accelerate the supply clearing of small and medium-sized enterprises. In the future, the industry concentration of white feather chicken breeding industry will be further improved, and the company will have more advantages in cost control and chicken price negotiation.
The efficiency of broiler breeding was improved and the channel structure was further optimized. In the past 21 years, the company sold 1055400 tons of chicken, a year-on-year increase of + 7.86%; The gross profit margin was 4.72%, year-on-year -13.15pct; The contribution gross profit accounted for 33.41%, a year-on-year increase of -23.42pct. 21q4 company sold 294100 tons of chicken, a month on month increase of + 10.61%; The average sales price is 10100 yuan / ton, a month on month increase of – 5%; The revenue was 2.97 billion yuan, up + 5% month on month. In the past 21 years, the company’s broiler feeding efficiency continued to improve, and the European index increased by more than 5% year-on-year. The sales link achieved double breakthroughs in high-value channel and customer development, the fresh product rate increased significantly, and the channel structure was further optimized. At present, the company’s white feather chicken breeding capacity is close to 600 million, and the total food deep-processing capacity built and under construction exceeds 433200 tons; In the future, the company’s broiler breeding capacity will be increased to 1 billion feathers, the deep-processing capacity will exceed 500000 tons, and the sales will exceed 13 billion yuan.
The gross profit of meat products contributed significantly, with a compound growth of 70% at the C-end in three years. In 21 years, the sales volume of deep-processing meat products of the company was 224600 tons, a year-on-year increase of + 17.13%; The estimated average sales price is 22500 yuan / ton; The gross profit margin was 16.62%, with a year-on-year increase of -10.84pct; The contribution gross profit accounted for 61.23%, with a year-on-year increase of + 21.1pct. The sales volume of meat products of 21q4 company is about 66800 tons, with a month on month increase of + 3.7%, realizing a revenue of 1.628 billion yuan, and the estimated average sales price is 24500 yuan / ton. The company has successively established three R & D centers in Guangze, Fuzhou and Shanghai, with 58 product transformations in 21 years, an increase of 200%; The sales volume of new products was 907million yuan in 21 years, with a compound growth rate of 29% in 14-21 years. In terms of C-end product research and development, the company’s new “crispy fried chicken” and “Dudu wing” in 21 years have achieved monthly sales of more than 10 million; In addition, the compound growth rate of C-terminal has reached 70% in three years, with significant growth. Among them, the online platform and the new retail platform have a compound annual growth rate of more than 250% and 300% respectively.
The investment suggestion company is an enterprise in the whole industrial chain of white feather broiler breeding, which has the advantage of integration, and continues to promote the strategy of simultaneous development of cooked food + raw food hyperbola. The competitive advantage of the industry is more significant, and the industry cycle will be further smoothed. We continue to be optimistic about medium and long-term growth. We expect that the company’s EPS from 2022 to 2023 will be 0.67/1.15 yuan respectively, corresponding to 29 / 17 times of PE, maintaining the “recommended” rating.
Risk tips
1. Risk of animal epidemic;
2. Risk of price fluctuation of raw materials;
3. Risk of food safety;
4. Risk of chicken price fluctuation, etc.
