\u3000\u3 Shengda Resources Co.Ltd(000603) 345 Fu Jian Anjoy Foods Co.Ltd(603345) )
Performance review
On April 25, the company released the annual report of 2021 and the first quarterly report of 2022. In the 21st year, the company achieved a revenue of 9.272 billion yuan, a year-on-year increase of + 33.1%, and a net profit attributable to the parent company of 682 million yuan, a year-on-year increase of + 13.0%; Among them, 21q4 achieved a revenue of RMB 3.176 billion, a year-on-year increase of + 28.1%, and a net profit attributable to the parent company of RMB 189 million, a year-on-year increase of - 16.1%. 22q1 achieved a revenue of 2.339 billion yuan, a year-on-year increase of + 24.2%, and a net profit attributable to the parent company of 204 million yuan, a year-on-year increase of + 17.7%.
Business analysis
The main business is steady and the number of dishes is increasing. In the past 21 years, the company's flour and rice products / meat products / surimi products / dishes were + 24% / 19% / 23% / 112% year-on-year respectively. The volume of dish products was fast, which was the result of the three rounds of self-produced + Mr. frozen products + M & A of XINHONGYE. Sub channels: distributors / supermarkets / Telcom / e-commerce + 32% / 10% / 173% / 102% year-on-year respectively. Due to their small volume, Telcom and e-commerce channels have a fast volume. By region, the Northeast / North China / East China / South China / Central China / Northwest / Southwest were + 26% / 37% / 28% / 33% / 55% / 66% / 20% year-on-year respectively. East China, accounting for nearly half of the total, still maintained a growth rate of nearly 30%, and the growth rate in other regions was basically more than 30%. The repeated outbreak of 22q1 has put some pressure on the company. If we do not consider the consolidation of XINHONGYE, the growth rate of 22q1 revenue and net profit attributable to parent company is expected to be single digits.
Gross profit margin is under obvious pressure in 21 years and is expected to improve marginally in 22 years. The gross profit margin of the company in 21 years / 21q4 / 22q1 was -3.56 / + 0.47 / - 2.28pct year-on-year respectively; The pressure on gross profit margin is mainly due to the increase of staff costs, freight, manufacturing expenses and raw material prices. In addition, the gross profit margin of frozen products and XINHONGYE is also lower than that of the whole. In the 21st year, the company's sales / management / Finance rates were - 0.1 / - 0.8 / - 0.1pct, 21q4 + 4.3 / - 0.2 / + 0.1pct and 22q1 - 0.7 / - 0.3 / - 0.3pct respectively. Transmitted to the net interest rate, the 21 year / 21q4 / 22q1 were 6.0% / 7.4% / 9.0% respectively, with a year-on-year decrease of 1.3/3.1/0.3pct respectively. The net interest rate of 22 years has a certain elasticity, the price of meat raw materials is relatively loose, and the investment in technological transformation has been in place in 21 years.
Add weight to the field of dishes. On the one hand, speed up the progress of self-production. After raising funds, the company invested 1 billion yuan to start the construction of the first prefabricated dish production base in Hubei, which will make full use of the raw material advantages of Hubei. On the other hand, we will continue to complete the extension merger and acquisition and take a stake in xinliuwu food, which has the advantage of crayfish industry in Qianjiang. At present, we have completed the acquisition of 40% equity, and are expected to realize 70% holding by the end of the year, so as to establish Anji's leading position in China's crayfish industry.
Investment advice
It is estimated that the company's net profit attributable to the parent company in 22-24 years is RMB 954 / 1255 / 1595 million, EPS is RMB 3.25 / 4.28 / 5.44, and the corresponding PE is 38 / 29 / 23 times, maintaining the "buy" rating.
Risk tips
The growth of new products did not meet expectations, the rising pressure of raw material costs, food safety problems and intensified industry competition.
