\u3000\u3 Shengda Resources Co.Ltd(000603) 076 Ningbo Lehui International Engineering Equipment Co.Ltd(603076) )
Events
On April 20, the company released the 2021 annual performance express.
Key investment points
The annual revenue increased by 16% year-on-year, and the deduction of non net profit decreased by 46% year-on-year; Pack light and start again
According to the company’s performance express in 2021, the company achieved an operating revenue of 990 million yuan in 2021, a year-on-year increase of 16%; The net profit attributable to the parent company was 46.26 million, a year-on-year decrease of 56%; Deduct non net profit of 45.61 million, a year-on-year decrease of 46%. Mainly as follows: 1) the company recently received the final judgment of the German arbitration institution dis on the arbitration case between the company and the original equity transferor of the German subsidiary. According to the judgment agreement, the company needs to pay 5.45 million euros and interest, affecting the net profit of 31.14 million yuan in 2021. The compensation payment is a one-time withdrawal payment, which will not have any impact on the company’s future operating profits. In the future, the company will focus on the first and second main businesses and start again with light equipment; 2) The company’s second main business, fine brewing, is in the expansion stage, with a net loss of 18.82 million yuan for the whole year.
New 30km fresh beer factories in Changsha and Shenyang will be built, and the strategy of “100 cities and 100 factories” will be accelerated
In March, the company announced that the 10000 ton fine brewing City factory in Changsha and the 5000 ton joint venture fine brewing City factory in Shenyang have been officially put into construction. It is expected that the factories in Changsha and Shenyang will adopt the form of renting factories to speed up the overall construction speed, and are expected to reach production by the middle of this year. The two production expansion plans in March showed that the process of building factories in other places of the company was greatly accelerated, and the strategy of “100 cities and 100 factories” was accelerated.
The expansion of independent brand operation accelerated, and the company’s own brand “fresh beer 30km” achieved a major breakthrough
We believe that the company’s channel progress, production capacity investment and remote expansion have accelerated, and the fresh beer business has achieved a great breakthrough. We are optimistic about the progress of channels and the expected substantial increase in fresh beer sales after the epidemic is alleviated!
B-end catering / large supermarket chain: the company’s own brand has entered the catering chain system of Fengmao kebab and buerjun Sichuan cuisine, and is expected to make a breakthrough in the follow-up. The limited winter “raspberry wheat” and the new spring “bayberry wheat” cooperated by the company and HEMA are exclusively supplied nationwide. It has become the top 1 in the new wine list of HEMA system.
Business form of C-end tavern / liquor station: it has successfully entered the mode replication stage in the early stage, and the process of opening stores in different places has been started. The recent epidemic situation in Shanghai and other places has repeatedly affected the landing rhythm of the company’s C-end channel. It is expected that after the epidemic situation is alleviated, the early-stage reserve projects will enter the accelerated introduction period, and the large-scale production will be imminent. Direct selling / dealer network: it is expected that the company’s 30 km direct selling / distribution network of fresh beer will be basically completed, and the laying of terminal outlets is accelerating. After the epidemic is alleviated, the sales of fresh beer is expected to exceed expectations. Online channel: fresh beer 30km products have been officially sold in wechat mall, jd.com, Taobao and tmall flagship stores. Tiktok shop has been launched, and tiktok and other online channels are expected to be promoted and promoted in various forms in the near future.
Profit forecast and valuation
The company’s profitability declined in 2021 due to raw material prices, rising shipping, contract disputes, refined brewing business development and other reasons. It is expected that the profitability will be significantly improved in 2022. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 0.5/1.3/250 million respectively, with a growth rate of – 56% / 188% / 86%, corresponding to 84 / 29 / 16 times of PE, maintaining the “buy” rating.
Risk warning: the epidemic situation affects the demand; The sales of fresh beer and fine brewed beer projects of independent brands were less than expected
