\u3000\u3 Shengda Resources Co.Ltd(000603) 345 Fu Jian Anjoy Foods Co.Ltd(603345) )
Event overview
The company achieved a revenue of 9.272 billion yuan in 21 years, a year-on-year increase of + 33.12%; The net profit attributable to the parent company was 682 million yuan, a year-on-year increase of + 13%. 22q1 achieved a revenue of 2.339 billion yuan, a year-on-year increase of + 24.16%, and a net profit attributable to the parent company of 204 million yuan, a year-on-year increase of + 17.65%.
The company plans to acquire 70% equity of xinliuwu food with a total of no more than 644 million yuan, and the target promises that the net profit in 22-24 years will not be less than 7000 / 8000 / 90 million yuan
Analysis and judgment:
The income continues to grow rapidly and contributes new increment
In 21 years, thanks to the company’s strengthening of product sales promotion and channel development, new and secondary new products contributed to the increment. At the same time, the subsidiaries XINHONGYE and Mr. frozen products began to contribute to the increment after the consolidated statements, and the revenue growth rate reached 33%.
In terms of products, the income of the company’s flour and rice products / meat products / surimi products / dishes products was 20.5 / 21.4 / 34.8 / 1.43 billion yuan respectively, with a year-on-year increase of + 23.6% / + 19.16% / + 23.07% / + 112.41% respectively. Due to the merger and acquisition, the income of new agricultural and sideline products and leisure food was 148 / 03 million yuan respectively, with good growth in all categories. The increase of dishes products was mainly due to the increase of Mr. frozen products and XINHONGYE series products, and the further enrichment of product lines, The company’s competitiveness in the field of frozen dishes continues to improve.
In terms of sub channels, the company’s dealers / supermarkets / Tetong direct sales / e-commerce revenue was RMB 77.2/9.2/4.4/180 million respectively, with a year-on-year increase of + 31.57% / + 9.53% / + 173.41% / + 101.65% respectively. Dealers are still the core channel, and Tetong and e-commerce channels are growing rapidly. In terms of regions, the income of northeast / North / East / South / central / Northwest / Southwest China was + 26.12% / + 37.23% / + 27.98% / + 32.80% / + 55.29% / + 66.13% / + 20.36% year-on-year respectively, with balanced growth in all regions.
The company’s revenue in 22q1 was 2.339 billion yuan, with a year-on-year increase of + 24.2%. The company continued to promote the sales of dishes, with a year-on-year increase of + 129.9%. The demand for flour and rice products was high, with a year-on-year increase of + 16.9%. Meat products and surimi products increased slightly year-on-year due to the impact of epidemic situation, logistics, demand and other factors, and XINHONGYE and Mr. frozen products made a combined contribution.
The gross profit margin decreased + the expense rate increased, and the profit scale continued to increase
From the cost side in the 21st year, the gross profit margin of the company was 22.1%, which was -3.56pct compared with the same period last year. It was mainly due to the increase of personnel salary cost, production investment and freight. In addition, the gross profit margin of Mr. new frozen products and XINHONGYE company was lower than the original main business of the company. On the expense side, the company’s sales / management / R & D / financial expense rates were 9.2% / 3.4% / 0.9% / 0%, respectively, with a year-on-year decrease of -0.1 / – 0.81 / – 0.11 / – 0.05pct. All expense rates decreased to a certain extent. The improvement of scale and internal efficiency led to the optimization of expense rate, and the comprehensive expense rate decreased by 1.06pct. Overall, the company’s revenue scale continued to expand and the expense rate continued to decline, offsetting part of the cost side pressure, driving the company to achieve a net profit attributable to the parent of 682 million yuan, a year-on-year increase of + 13%, corresponding to a net profit attributable to the parent of 7.4%, a year-on-year decrease of 1.31pct, and the profit scale continued to expand.
22q1 company’s cost side continued to be under pressure, the gross profit margin decreased by 2.28pct year-on-year, the expense rate continued to be optimized, and the comprehensive expense rate increased by 1.36pct year-on-year.
In Q1, the company realized a net profit attributable to the parent company of 204 million yuan, a year-on-year increase of + 17.7%, and the corresponding net profit attributable to the parent company decreased by 0.48pct to 8.7% year-on-year.
The acquisition of Liuwu food plus prefabricated vegetables has continued to improve its business
Liuwu food is mainly engaged in freshwater crayfish and frozen surimi. After the acquisition, it not only strengthens the supply guarantee of the company’s strategic main raw materials, but also further improves the company’s market share in the field of crayfish dishes. The company has successively acquired XINHONGYE, Mr. frozen products and other companies, and further improved the layout of prefabricated dishes. Under the strategic guidance of “combining two swords and three ways”, prefabricated dishes have become the key direction and important increment of the company’s future development.
Looking forward to the whole year, the company actively responds to the cost pressure through multiple measures such as centralized procurement, adjustment of product structure and price increase. The market share of quick-frozen hot pot products at the product end is expected to continue to increase, the demand for quick-frozen rice noodles will not decrease, the dish products will grow rapidly by taking advantage of the east wind of the industry, and the canal end will adhere to BC, promote the balanced development of core channels and regions, and the overall operation will continue to improve. We believe that under the joint escort of industry dividend + company’s strategic direction, the company is expected to continue its competitive advantage and realize the growth of scale and profit hand in hand.
Investment advice
Referring to the latest financial report, we raised the company’s revenue from 22-23 years by 10.882/13.276 billion yuan to 11.63/14.71 billion yuan, and increased the forecast of 24-year revenue by 17.51 billion yuan; Adjust the forecast of EPS of 4.46/5.71 yuan in 22-23 years to 3.11/3.90 yuan, and add a forecast of EPS of 4.72 yuan in 24 years; Corresponding to the closing price of 112.49 yuan / share on April 25, 2022, PE is 36 / 29 / 24 times respectively, maintaining the “buy” rating of the company.
Risk tips
The promotion of mergers and acquisitions did not meet expectations, the promotion of new products did not meet expectations, the industry competition intensified, and food safety
