\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 15 Shanghai Hi-Road Food Technology Co.Ltd(300915) )
Event: release the 21st Annual Report and the 22nd quarterly report. In 2021, the company achieved a total operating revenue of 747 million yuan, an increase of 30.66%, and in 2022, Q1 achieved a revenue of 215 million yuan, an increase of 36.98%; In 2021, the net profit attributable to the parent company was 112 million yuan, an increase of 29.49% at the same time. In 2022, the net profit attributable to the parent company in Q1 was 32 million yuan, an increase of 96.22% year-on-year.
Revenue side: quarter by quarter, Q1 / Q2 / Q3 / Q4 company achieved revenue of 157 million yuan / 193 million yuan / 195 million yuan / 202 million yuan respectively in 2021, and Q3 / Q4 increased by 31.87% / 3.10% year-on-year; The net profit attributable to the parent company was 16 million yuan / 35 million yuan / 42 million yuan / 19 million yuan, with a year-on-year increase of 103.33% / – 50.95% in Q3 / Q4. In terms of products, the company has deeply cultivated the sub category of vegetable fat and cream for many years and continuously innovated production technology. Vegetable fat and cream accounts for a large proportion of the company’s revenue, accounting for 89.05% / 91.23% in 2020 and 2021 respectively, mainly due to the company’s increased marketing and sales efforts.
Cost side: the gross profit margin in 2021 was 43.66%, with a year-on-year increase of -9.27pct, mainly due to the decline in the gross profit margin of whipped cream, chocolate and jam. The gross profit margin of Q1 in 2022 was 36.31%, with a year-on-year increase of -16.95pct. The decline in gross profit margin was mainly due to the rise in the price of raw materials, the company’s implementation of new income standards, and the adjustment of transportation expenses to operating costs. According to the products, the gross profit rates of the greases, butter, jam and essence of the company were 45.19%/29.31%/29.20%/27.89%, which changed by -9.50pct/-7.05pct/-8.58pct/6.35pct compared with that of the previous year. The fat and butter gross profit was always higher than the overall level, and the gross profit rate of the main products had a larger pulling effect.
Expense side: in 2021, the company’s sales expense rate decreased year-on-year, and the R & D expense rate increased steadily by 45.85%. During 2021, the expense rate was 30.11%, down 6.12pct year-on-year. During Q1 of 2022, the expense rate was 22.78%, with a year-on-year change of -18.53pct. In 2021, the company’s sales / management / Finance / R & D expense rate was 17.50% / 8.55% / -0.26% / 4.32% respectively, with a year-on-year change of -6.23pct / -0.06pct / -0.28pct/0.45pct.
Profit side: the company’s net profit attributable to the parent company in 2021 was 112 million yuan, an increase of 29.49%, and the net profit attributable to the parent company in Q1 in 2022 was 32 million yuan, an increase of 96.22%; In 2021, the annual net interest rate attributable to the parent company was 15.0%, a decrease of 0.2pct compared with the same period. In 2022, the net interest rate attributable to the parent company in Q1 was 14.9%, an increase of 4.4pct compared with the same period. The company’s gross profit margin has been stable for 2122 years, but the impact on the company’s gross profit margin has been prominent.
Investment suggestion: the company continuously optimizes the product structure while continuing product innovation, and meets different customer needs by means of product line segmentation, category extension and customization, so as to enrich the product line. In terms of channels, while maintaining close cooperation with strategic customers, the company will speed up channel sinking and fine management, and actively explore new retail and convenience store channels. Considering the cost side pressure and the impact of the epidemic on downstream demand, we adjusted the company’s net profit for 22-23 years to 150 million yuan / 200 million yuan (the original value was 200 million yuan / 270 million yuan), and the corresponding PE was 26x / 19x, maintaining the “buy” rating.
Risk tips: raw material price fluctuation risk, market competition risk and overseas market operation risk
