\u3000\u30 Fawer Automotive Parts Limited Company(000030) Fawer Automotive Parts Limited Company(000030) 00)
Events
On the evening of April 24, 2022, the company released the first quarterly report of 2022: the revenue of 2022q1 was 259 million yuan, an increase of 15.53% at the same time; The net profit attributable to the parent company was 20 million yuan, with a decrease of 5.79%; Deduct non net profit of 17 million yuan, with a decrease of 12.56%.
Key investment points
The performance was in line with expectations, and the discount affected the gross profit margin. The company’s 2022q1 revenue was 259 million yuan, an increase of 15.53% at the same time; The net profit attributable to the parent company was 20 million yuan, with a decrease of 5.79%; The deduction of non net profit was 17 million yuan, a decrease of 12.56% at the same time. The decrease of non deduction was caused by equity payment expenses, and the performance was in line with expectations.
The gross profit margin of the company in 2022q1 was 26.56% (with a decrease of 1.2pct), which was due to the discount brought by strengthening channel construction in the first quarter. In 2022q1, the sales cost was 31 million yuan, an increase of 30% at the same time, which was caused by the company’s increase in brand promotion fee and e-commerce service fee; The management fee was 17 million yuan, an increase of 32% at the same time, which was due to the increase of share based payment fee. 2022q1 net interest rate is 7.46%, with 2pct deducted. The net cash flow from operating activities in 2022q1 was 62 million yuan, an increase of 1223% at the same time; The payment received in 2022q1 was 297 million yuan, an increase of 18.8% at the same time. The prepayment at the end of 2022q1 was 16 million yuan, an increase of 102% at the same time, which was due to the increase of prepayment of raw materials; The project under construction was 43 million yuan (62% increase at the same time), which was caused by the increase of technical transformation projects of flavor small fish production line. The goal in 2022 is to increase revenue by no less than 20%.
New products continue to emerge from the old and channels continue to be intensively cultivated
On the brand side, in 2022, the company will continue to focus on building the brand image of brine snack experts with leading sales, cultivating category cognition and deepening brand construction. First, pay attention to online brand communication, concentrate advantageous resources and carry out brand planning and communication activities for young consumer groups. Second, focus on the image building of the market terminal, combine online and offline advertising and brand exposure, promote the integration of product efficiency, optimize communication efficiency, and realize the rapid improvement of brand influence and the rapid rise of category market scale. On the product side, in 2021, the company focused on three categories: Coke fish products, bean products and poultry products. According to the needs of consumer demand and channel expansion, the company focused on launching three categories of large packaging (whole bag sales and whole box sales) series in 2021. At the same time, it also developed innovative and upgraded taste products such as “Huxiang spicy” and “hot pot”, which achieved certain market results. In 2022, the company will continue to drive the transformation and upgrading of core categories through technological upgrading and standardization, so as to achieve the goal of optimizing product taste, reducing product cost and improving the core competitiveness of products. At the same time, the company will actively research and develop innovative fish products, new bean products, poultry products, egg products, vegetarian flavor and other products to further optimize the product structure and meet the diverse needs of consumers.
On the channel side, the company adheres to the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) all channel development strategy, takes the channel layout and construction as the development core of the company, and continuously improves the market competitiveness of products. The sales mode is dominated by distribution mode and supplemented by direct sales mode; The sales channel has gradually formed a pattern of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) two wheel drive and balanced development. In 2022, the company will keep up with the changing trend of online and offline channels, speed up the construction of channels for the blank market, expand the breadth, and make every effort to improve the distribution rate. For the covered channels, strengthen the fine operation, do a good job in deep intensive cultivation to improve the output, and then continuously improve the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) marketing network of the company.
Profit forecast
At present, the company continues to focus on deep ploughing marinated snacks, focusing on the “three categories” of deep ploughing leisure fish products, bean products and poultry products, constantly innovate, give full play to the core advantages of the company’s independent manufacturing, and adhere to deepening the construction of marketing network. We are optimistic that the company will focus more on fish snacks, optimize the existing product structure, expand other categories of fish snacks and seafood snacks, and continue to promote new products. We expect EPS to be 0.26/0.32/0.39 yuan from 2022 to 2024, and the current share price corresponding to PE is 34 / 28 / 23 times respectively, maintaining the “recommended” investment rating.
Risk tips
Risks such as the rise of epidemic situation and the decline of raw materials are less than expected.
