\u3000\u3 Bohai Water Industry Co.Ltd(000605) 179 Zhejiang Yiming Food Co.Ltd(605179) )
Event: Zhejiang Yiming Food Co.Ltd(605179) issued the annual report for 2021, which was consistent with the performance express. In the whole year, the total operating income was 2.316 billion yuan, a year-on-year increase of + 18.96%, the net profit attributable to the parent company was 20 million yuan, a year-on-year increase of – 84.70%, and the non net profit deducted was 07 million yuan, a year-on-year increase of – 93.90%. Q4 achieved a total operating income of 631 million yuan, a year-on-year increase of + 8.62%, a net profit attributable to the parent of – 41 million yuan, a year-on-year increase of – 223.17%, and a deduction of non net profit of – 41 million yuan, a year-on-year increase of – 227.49%. It is proposed to pay a cash dividend of 0.16 yuan (including tax) for 10 shares.
The opening of Direct stores accelerated, and the disturbance of the epidemic caused a slight pressure on individual stores. 1) Opening: in 2021, the number of milk bar stores of the company was 2139, including 1225 franchise stores and 914 Direct stores; The company has intensified its efforts to deepen the East China market and focused on expanding Shenzhen New Land Tool Planning &Architectural Design Co.Ltd(300778) region. In the year, 569 new stores (including 467 Direct stores) have been opened, and 106 stores have been signed to be opened. 2) Single store: the income of franchised / directly operated single store was 740000 yuan / 640000 yuan, a year-on-year increase of + 2.8% / – 25.7%. The decline of single stores in Direct stores was mainly due to the repeated epidemic in newly expanded areas in the second half of the year, the decline of passenger flow in transportation hub stores and school stores, and the sales of store products were affected to a certain extent. 3) Category: dairy products / baked goods / other foods were 1.125/8.72/119 billion yuan respectively, with a year-on-year increase of + 8.83% / + 23.41 / + 67.62%. 4) Sub channels: franchise / distribution / online / direct sales / direct sales were 907 / 3.46 / 0.21 / 2.54 / 587 million yuan respectively, with a year-on-year increase of + 1.2% / + 40.3% / + 43.2% / + 24.2% / + 30.8%. 5) Sub regions: Zhejiang / Jiangsu / Shanghai / Fujian achieved operating revenue of RMB 1.81/2.5/0.3/09 billion respectively, with a year-on-year increase of + 13.5% / + 37.8% / + 65.8% / + 41.5% / + 43.2%.
The gross profit margin of multiple factors is under short-term pressure, and the channel expansion cost is put in front. 1) Gross profit margin: in 2021, the gross profit margin of the company’s main business was 32.83%. Considering the adjustment of transportation cost, it was -1.85pct year-on-year. Mainly due to the rise in raw material prices, the use of raised investment projects (Jiaxing Yiming and Jiangsu Yiming) and the low base of social security relief last year. 2) Expense ratio: in 2021, the company’s sales expense ratio was 22.59%, with a year-on-year increase of + 2.73pct, mainly due to the increase of store expenses caused by the increase in the number of Direct stores. The annual net interest rate was 0.87%, with a year-on-year increase of -5.93pct.
Profit forecast: affected by the epidemic, the company’s short-term profits are under pressure. Considering the company’s differentiated channel construction, the retail model of “central factory + chain stores” and the dairy + baking two wheel drive product matrix, there is still a large growth space in the long term. We expect that in 2022 / 23 / 24, the revenue will be RMB 2.56/31.9/4.07 billion, and the net profit attributable to the parent company will be RMB 53 / 126 / 187 million, with a year-on-year increase of + 163.9% / 135.0% / 48.7%. The current market value corresponds to PE 90.0/38.3/25.8 times, maintaining the rating of “overweight”.
Risk tips: fluctuations in raw material prices, the impact of the epidemic on single store income, and food safety issues
