\u3000\u3 Shengda Resources Co.Ltd(000603) 345 Fu Jian Anjoy Foods Co.Ltd(603345) )
Event: the company released the annual report of 2021 and the report of the first quarter of 2022. In 2021, the company achieved a revenue of 9.272 billion yuan, a year-on-year increase of 33.1%; The net profit attributable to the parent company was 682 million yuan, a year-on-year increase of 13.0%. Among them, 21q4 company achieved a revenue of 3.176 billion yuan, a year-on-year increase of 28.1%; The net profit attributable to the parent company was 188 million yuan, a year-on-year increase of – 16.1%. 22q1 company achieved a revenue of 2.339 billion yuan, a year-on-year increase of 24.2%; The net profit attributable to the parent company was 204 million yuan, a year-on-year increase of 20.6%.
Comments:
22q1 company’s revenue growth is in line with expectations, and XINHONGYE and Mr. frozen products contribute greatly. Regardless of the impact of consolidation, the revenue growth rate of 22q1 Anjing source system was about 8.5%, which was low, mainly due to the poor sales performance of the company due to the weak consumption environment in January 22, which dragged down the overall sales of 22q1. By category, 22q1 noodle rice products / meat products / surimi products / dish products increased by 16.6% / 0% / 1.3% / 129.9% year-on-year. Benefiting from the epidemic situation, the revenue of flour and rice products dominated by C-end performed well. Meat products and surimi products are greatly affected by the epidemic situation, logistics control, weak catering market and other factors, and there is basically no growth. Thanks to the company’s efforts to create prefabricated dishes, Anji brand dishes, Mr. frozen dishes and XINHONGYE crayfish products have increased significantly. The acquisition of xinliuwu not only strengthens the control of surimi, but also improves the competitiveness of the company in crayfish business. In terms of sub channels, 22q1 dealers / supermarkets / Tetong / e-commerce increased by 18.6% / – 0.7% / 295.1% / 138.1% year-on-year. The channel base of supermarkets is high, and the revenue has declined slightly due to the impact of logistics. During the reporting period, the company actively explored new channels, and Telcom and e-commerce channels grew rapidly. In the past 21 years, the number of distributors of the company increased rapidly, mainly due to the sinking of channels and the expansion of C-end channels. In terms of regions, the year-on-year growth rates of 21q3 northeast / North China / East China / South China / Central China / Northwest / southwest regions reached 19.4% / 28.6% / 12.6% / 26.4% / 62.0% / 89.3% / 16.6% respectively. Due to the impact of the epidemic, the growth in East China was blocked.
The profit side performance exceeded expectations, and the performance inflection point has reached. 22q1 gross profit margin was 24.2%, up 1.8 points month on month, mainly due to the effect of price increase; However, it still fell by 2.3 percentage points year-on-year, mainly due to the rise in the price of oil and protein raw materials, the increase in transportation costs and the increase in the proportion of low gross profit business revenue. The gross sales difference of 22q1 company was 13.9%, a year-on-year decrease of 1.6 percentage points. 22q1 management expense ratio was 3.0%, down 0.4 percentage points year-on-year, mainly due to the reduction of share based payment expenses and the embodiment of scale effect. The net interest rate of 22q1 company was 9%, up 2.9 percentage points month on month. In 21 years, the company increased its investment in technological transformation, and this cost is expected to be reduced in 22 years. The profit margin of Mr. frozen products has improved, mainly driven by the C-end pickled vegetable fish business and the embodiment of scale effect.
Profit forecast and investment rating: in the past 21 years, many factors such as fierce industry competition, rising raw materials and technical transformation expenses have a great impact on the company’s performance. 21q4 after the price increase, the company’s profit margin has improved. Looking forward to the next 22 years, the company will take the net interest rate as the guide and strengthen the control over the sales cost. We expect that the profitability will still be guaranteed. Prefabricated dishes are the key category of the company. There is a large market space in China. AndI has competitive advantages in management, channel and brand. We expect that the company’s EPS from 2022 to 2024 will be 3.32/4.33/5.7 yuan respectively, and the corresponding PE will be 33.91/25.98/19.75 times respectively, giving a “buy” rating.
Risk factors: the price rise of raw materials is higher than expected; New product promotion is less than expected
