\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 872 Jonjee Hi-Tech Industrial And Commercial Holding Co.Ltd(600872) )
Event overview
The company achieved a revenue of 5.116 billion yuan in 2021, a year-on-year increase of – 0.15%; The net profit attributable to the parent company was 742 million yuan, a year-on-year increase of – 16.63%; EPS 0.94 yuan. The company achieved a revenue of 1.347 billion yuan in 22q1, a year-on-year increase of + 6.63%; The net profit attributable to the parent company was 158 million yuan, a year-on-year increase of – 9.46%; EPS 0.21 yuan.
Analysis and judgment:
Condiment main business under pressure, waiting for demand to recover
In 21 years, the company’s condiment / real estate / auto parts revenue was 4.565 billion yuan / 4.10 billion yuan / 78 million yuan respectively, with a year-on-year increase of – 7.4% / + 369.1% / + 53.1% respectively. The low base and high growth of real estate business was mainly due to the income of sold commercial houses in the early stage of confirmation of “East Bank of Qijiang” real estate project. The auto parts business increased more, mainly due to the large decline in 20 years. The revenue of the main seasoning industry declined by 7.4% as a whole. In terms of products, the revenue of soy sauce / chicken powder / edible oil / other products was 2827 / 546 / 490 / 703 million yuan respectively, with a year-on-year increase of – 9.5% / + 10.5% / – 18.7% / – 1.1% respectively. Driven by the recovery of catering demand, chicken powder achieved growth, and other categories were under pressure, with a year-on-year decrease; In terms of regions, the East / South / Midwest / north of the company increased by + 1.9% / – 5.2% / – 12.9% / – 18.9% year-on-year respectively, with only a slight increase in the East and a large decrease in the Midwest and North. However, 76 / 160 dealers were added in the Midwest and north respectively. In order to increase the reserve potential, 281 dealers were added, the cumulative coverage of prefecture level cities nationwide reached 92.28%, and the development rate of districts and counties reached 59.97%. Since 2022, the overall environment of the industry has slightly improved compared with that in the past 21 years, but the epidemic has broken out in many places. The seasoning business of the company has slightly decreased by 0.6% year-on-year, of which the revenue of soy sauce / chicken powder / edible oil / other products was RMB 7.52/1.55/1.06/203 million respectively, with a year-on-year -1.1%/+10.4%/-21.8%/+9.0% respectively. Chicken powder and snacks performed well, and the edible oil fell sharply, and the market is still recovering gradually. The overall revenue of the company was + 6.63% year-on-year, which was better than the main seasoning industry. The main reason was that the revenue of the parent company / Zhonghui hechuang / Zhongju Seiko increased year-on-year.
Rising costs affect the gross profit margin, and the profit side is under pressure
The company’s gross profit margin and net profit attributable to the parent company in 21 years were 34.9% and 14.5% respectively, with a year-on-year increase of -3.39 PCT and -2.87 PCT respectively; Among them, the gross profit margin and net profit margin of Meiweixian, a subsidiary, were 30.71% and 13.14% respectively, with a year-on-year increase of -5.11pct and -4.15pct respectively. The rise in the price of raw materials of main condiments reduced the company’s short-term profitability year-on-year.
Specifically, the decline in the company’s gross profit margin was mainly due to the continuous high price of raw materials throughout the year and the decline in the ton price of soy sauce, the core product. On the expense side, the company’s sales / management / R & D / financial expenses were + 0.31 / – 0.50 / + 0.32 / + 0.14pct year-on-year respectively. The increase in the sales expense rate was mainly due to the increase in the expenses of publicity, meetings and e-commerce. The decrease in the management expense rate was mainly due to the decrease in performance provision, and the expense rate changed little during the overall period. Overall, in the past 21 years, the company’s main business condiment faced great pressure. The decline in revenue and gross profit margin put great pressure on the profit and profit side. The net profit attributable to the parent decreased by 2.87pct to 14.5%, corresponding to a year-on-year decrease of 16.6% in the net profit attributable to the parent, and the net profit of condiment business alone decreased by more than 30%. The parent company contributed a net profit of 119 million yuan due to the real estate business, which was beneficial to the profit.
In the first quarter of 22, the pressure on the cost side of the company has not been reduced, and the advance price is still in the process of price adjustment. The gross profit margin of the condiment business has dropped by 5%, and the cost rate has changed little. The net interest rate of the condiment has dropped to 11%, down -4.2pct compared with the same period last year, and net profit decreased by 28% compared with the same period last year. The cost is the core factor of the impact. The overall operation of the company is slightly better than that of the main condiment business, mainly due to the incremental contribution of huihechuang in the parent company and subsidiaries.
Business improvement is still on the way, looking forward to getting out of the low profit
In 2022, although the company still faces multiple pressures from the market, epidemic situation and raw materials, the company will continue to strengthen the marketing management, technological innovation, product development, capacity upgrading, intelligent manufacturing and information construction of Meiweixian company, so as to ensure the continuous development of the core main business, continue to carry out in-depth organizational reform, and accelerate talent training and growth. Although the short-term development of the industry and the company is in a painful period, the company is still actively coping with it, constantly cleaning up the burden and taking the lead in the process of market recovery; For a long time, we are optimistic that the company will continue to deepen its efforts in marketing layout, capacity expansion and product R & D, comply with the development trend of the industry and strengthen competitive advantages and barriers.
Investment advice
Referring to the latest financial report, we lowered the company’s revenue of 6.019/7.154 billion yuan to 5.602/6.334 billion yuan in 22-23 years, increased the forecast of 24-year revenue by 6.923 billion yuan, adjusted the EPS of 0.97/1.19 yuan to 1.01/1.18 yuan in 22-23 years, and increased the EPS of 24 years by 1.33 yuan, corresponding to the closing price of 26.95 yuan / share on April 22, 2022, and the PE was 27 / 23 / 20 times respectively, maintaining the company’s buy rating.
Risk tips
The impact of the epidemic exceeded expectations, the industry competition intensified, the expansion of catering channels did not meet expectations, and food safety
