\u3000\u3 Shengda Resources Co.Ltd(000603) 317 Sichuan Teway Food Group Co.Ltd(603317) )
Event: the company released the first quarterly report of 2022, achieving an operating revenue of 629 million yuan, a year-on-year increase of 20.60%, a net profit attributable to the parent of 100 million yuan, a year-on-year increase of 25.27%, and a net profit deducted from non attributable to the parent of 98 million yuan, a year-on-year increase of 27.26%.
Revenue grew steadily and gross profit margin improved month on month. The company achieved an operating revenue of 629 million yuan in the first quarter, with a year-on-year increase of 20.60%. The company’s Q1 can still maintain a growth of about 20% under the background of a high base last year. On the one hand, it is related to the company’s de inventory and benign channel level last year, on the other hand, it is due to the company’s continuous promotion of internal business reform and continuous promotion of terminal dynamic sales. In the first quarter, the company’s gross profit margin was 35.95%, which decreased by 1.74 PCTs compared with the same period last year under the pressure of cost. However, we expect the company to reduce the donation in the first quarter and increase by 7.83 PCTs month on month, which is a significant improvement. Looking ahead to Q2, the epidemic affects the company’s logistics and consumption scenarios, but the company is actively responding. It is expected that the marginal improvement of Q2 company is expected to be maintained.
In terms of products, the company’s hot pot seasoning / Chinese dish seasoning / sausage bacon seasoning / chicken essence / spicy sauce / others achieved operating revenue of RMB 240 / 3.5 / 0.05 / 0.2 / 0.09 / 05 million respectively, with a year-on-year increase of -3.24% / 45.00% / – 35.26% / 87.32% / 35.39% / – 15.13%. Among them, the decline of base material is mainly due to the reduction of promotion this year, resulting in the difference between the shipment rhythm and 21q1. In terms of regions, the Southwest / Central China / East China / Northwest / North China / Northeast / South China / export of major regions achieved an operating revenue of 180 / 1.1 / 150 million yuan respectively, with a year-on-year increase of 17.78% / 20.59% / 20.70%, maintaining a steady growth. In terms of channels, dealers / customized meal adjustment / e-commerce achieved revenue of 520 / 0.5/0.30 billion yuan respectively, with a year-on-year increase of 23.42% / 12.95% / – 20.20%. In terms of the number of dealers, the number of dealers decreased by 41 to 3368 in the first quarter of 2022.
The expense rate improved significantly, and the net interest rate increased year-on-year. In the first quarter, the company realized a net profit attributable to the parent company of 100 million yuan, a year-on-year increase of 25.27%. The Q1 sales / management / R & D expense ratio of the company was 13.01% / 3.39% / 1.21% respectively, with a year-on-year increase of -4.92 / – 0.17 / + 0.19pcts. The sales expense ratio improved significantly year-on-year. It is expected that the main reason is that the company reduced advertising investment in the first quarter; In addition, the company strengthened the accurate delivery of brand expenses, optimized the sales organization design through the hierarchical operation mode of dealers, and improved the cost ratio efficiency. The company achieved a net interest rate of 15.93% in Q1, with a year-on-year increase of 0.57pcts.
Looking forward to the next 22 years, the company’s restorative growth trend is obvious, and the operating margin is improved. It is suggested to actively pay attention to the marginal change of the company: 1) the channel inventory is benign, the overlapping product line is reorganized, and the overall dynamic sales are good; 2) The internal organizational structure of the company has been actively adjusted, and the personnel tend to be stable. Under the new equity incentive, the overall team has strong confidence; 3) The channel terminal has entered the fine operation, and the dealer management has become more and more mature, so that the problems such as goods age can be effectively improved. In addition, the company actively constructs the upstream and downstream layout of the industrial chain and explores industrial M & A projects, so as to enhance the company’s position in the industrial chain and ensure the stable supply of raw materials and the development of downstream market scenarios. In the future, with the gradual clearing of the market, we believe that the industry concentration is still expected to be concentrated to the head. As a leading company, the overall competitiveness of the company is expected to be gradually improved in this round of competition. We are optimistic about the marginal improvement of the company and the long-term development in the future.
Profit forecast: the company is expected to achieve revenue of RMB 2.650/32.93/4.010 billion in 22-24 years, with a year-on-year increase of 30.85% / 24.24% / 21.79%, net profit of RMB 351 / 4.63/618 million, with a year-on-year increase of 90.03% / 31.96% / 33.41%, EPS of RMB 0.47/0.61/0.82 respectively, maintaining the “buy” of the company
Rating.
Risk warning: macroeconomic downside risk; Covid-19 epidemic risk; Risk of rising costs
