\u3000\u3 Shengda Resources Co.Ltd(000603) 345 Fu Jian Anjoy Foods Co.Ltd(603345) )
Events
On the evening of April 25, 2022, the company released the 021 annual report and the first quarterly report of 2022: the revenue in 2021 was 9.272 billion yuan, an increase of 33% at the same time; The net profit attributable to the parent company was 682 million yuan, an increase of 13% at the same time; Deduct 560 million yuan of non-profit, an increase of 0.5% at the same time. In 2022q1, the revenue was 2.339 billion yuan, an increase of 24% at the same time; The net profit attributable to the parent company was 204 million yuan, an increase of 17.7% at the same time; Deduct non RMB 178 million, an increase of 14% at the same time.
Key investment points
The company ended successfully in 2021, and the performance of the first quarterly report exceeded the expectation. The company’s revenue in 2021 was 9.272 billion yuan, an increase of 33% at the same time; The net profit attributable to the parent company was 682 million yuan, an increase of 13% at the same time; Deduct 560 million yuan of non-profit, an increase of 0.5% at the same time. Among them, the revenue of 2021q4 was 3.176 billion yuan, an increase of 28% at the same time; The net profit attributable to the parent company was 188 million yuan, with a decrease of 16%. In 2022q1, the revenue was 2.339 billion yuan, an increase of 24% at the same time; The net profit attributable to the parent company was 204 million yuan, an increase of 17.7% at the same time; Deduct non RMB 178 million, an increase of 14% at the same time. The gross profit margin of the company in 2021 was 22.12% (reduced by 3.6pct at the same time), which was caused by the increase of personnel salary cost, production investment and freight. In addition, the gross profit margin of new frozen products and XINHONGYE was lower than that of the company’s main business, which also reduced the gross profit margin; Among them, 2021q4 is 22.38% (with an increase of 0.5pct); The net interest rate in 2021 is 7.41% (minus 1.3pct), of which 2021q4 is 6.01% (minus 3PCT). The gross profit margin of 2022q1 is 24.20% (with a decrease of 2.3pct), which is caused by the rise of raw materials; The net interest rate of 2022q1 is 8.96% (the same as minus 0.3pct).
High growth of dishes and products, and the volume and price of products increased all year round
In terms of products, in 2021, the revenue of quick-frozen flour and rice products was 2.054 billion yuan (with an increase of 24%), accounting for 22% (with a decrease of 1.7 PCT), and the gross profit margin was 24.08% (with an increase of 4 PCT); Among them, the revenue of 2021q4 was 647 million yuan (with an increase of 22%), accounting for 20% (with a decrease of 1PCT). In 2021, the revenue of meat products was 2.142 billion yuan (with an increase of 19%), accounting for 23% (with a decrease of 3PCT), and the gross profit margin was 24.91% (with an increase of 0.2pct); Among them, the revenue of 2021q4 was 721 million yuan (with an increase of 10%), accounting for 23% (with a decrease of 4pct). In 2021, the revenue of surimi products was 3.478 billion yuan (with an increase of 23%), accounting for 38% (with a decrease of 3PCT), and the gross profit margin was 22.68% (with an increase of 3PCT); Among them, the revenue of 2021q4 was 1.163 billion yuan (with an increase of 14%), accounting for 37% (with a decrease of 5pct). In 2021, the revenue of dish products was 1.429 billion yuan (with an increase of 112%), accounting for 15% (with an increase of 6pct), and the gross profit margin was 14.21% (with an increase of 8pct); Among them, the revenue of 2021q4 was 511 million yuan (with an increase of 92%), accounting for 16% (with an increase of 5pct). In 2021, the revenue of agricultural and sideline products was 148 million yuan, accounting for 2% and the gross profit margin was 16%; Among them, the revenue of 2021q4 is 142 million yuan, accounting for 4.5%; In 2021, the revenue of leisure food was 03 million yuan, with a gross profit margin of 17.5%; Among them, the revenue of 2021q4 is 02 million yuan. In 2021, the income from other businesses was 18 million yuan (increased by 151% at the same time), and the gross profit margin was 38.95% (increased by 1.3pct at the same time). In 2022q1, the revenues of flour and rice products, meat products, surimi products, dish products and other businesses were 510 million yuan, 480 million yuan, 750 million yuan, 520 million yuan and 05 million yuan respectively, with an increase of 16.6%, 0.04%, 1.3%, 130% and 185% respectively. Among them, 2022q1 Anjing brand dishes, Mr. frozen dishes and XINHONGYE crayfish products all increased significantly; 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; The market demand for flour and rice products is large, but due to the impact of logistics control, it is not delivered in time, resulting in a certain impact on the growth. As the epidemic situation eased, logistics control and transportation capacity across the country gradually recovered. The growth of other business income was mainly due to the sale of raw materials.
From the perspective of volume and price, the sales volume of flour and rice products in 2021 will be 198100 tons (with an increase of 23%), and the corresponding ton price will be 10400 yuan / ton (with an increase of 0.13%); The sales volume of meat products was 159700 tons (with an increase of 18%), and the corresponding ton price was 13400 yuan / ton (with an increase of 0.7%); The sales volume of surimi products was 263500 tons (with an increase of 21%), and the corresponding ton price was 13200 yuan / ton (with an increase of 1.5%); The sales volume of dish products was 107000 tons (with an increase of 51%), and the corresponding ton price was 13400 yuan / ton (with an increase of 41%).
In terms of subregions, the revenue of Northeast China in 2021 was 822 million yuan (an increase of 26%, accounting for 9%; Among them, the revenue of 2021q4 was 258 million yuan (with an increase of 7%), accounting for 8% (with a decrease of 1.6pct). In 2021, the revenue of North China was 1.145 billion yuan (with an increase of 37%), accounting for 12%; Among them, the revenue of 2021q4 was 376 million yuan (with an increase of 34%), accounting for 12%. In 2021, the revenue of East China was 4.537 billion yuan (with a 28% increase), accounting for 49%; Among them, the revenue of 2021q4 was 1.51 billion yuan (with an increase of 23%), accounting for 48% (with a decrease of 2pct). In 2021, the revenue of South China was 770 million yuan (with an increase of 23%), accounting for 8%; Among them, the revenue of 2021q4 was 279 million yuan (with an increase of 36%), accounting for 9%. In 2021, the revenue of central China was 1.044 billion yuan (with an increase of 55%), accounting for 11%; Among them, the revenue of 2021q4 was 408 million yuan (a 59% increase), accounting for 13%. In 2021, the revenue of Northwest China was 357 million yuan (with an increase of 66%), accounting for 4%; Among them, the revenue of 2021q4 was 139 million yuan (with an increase of 66%), accounting for 4%; The revenue of Southwest China is 562 million yuan (+ 20.36%), accounting for 6.06% (-0.64pct); Among them, the revenue of 2021q4 was 180 million yuan (the same decrease of 1.5%), accounting for 6%. In 2021, the overseas revenue was 35 million yuan, including 27 million yuan in 2021q4. In 2022q1, the revenue of Northeast China / North China / East China / South China / Central China / Northwest / Southwest was 160 / 2.6 / 11.5 / 2.4 / 2.8 / 0.74 / 150 million yuan respectively, with an increase of 19% / 29% / 13% / 26% / 62% / 89% / 17% respectively; The revenue in overseas areas is 30 million yuan, which is the Kungfu food company included in the consolidated statement last September. The high growth in Central China in 2022q1 is due to the fact that Honghu XINHONGYE Food Co., Ltd., which was included in the consolidated statements in August 2021, takes central China as the main sales area.
In terms of distribution channels, the sales revenue of distribution channels in 2021 was 7.723 billion yuan (an increase of 32%), accounting for 83%; The channel revenue of supermarkets was 923 million yuan (with an increase of 9%), accounting for 10% (with a decrease of 2pct); The revenue from the channels directly operated by Tetong was 445 million yuan (with an increase of 173%), accounting for 5% (with an increase of 2pct); The revenue of e-commerce channels was 182 million yuan (with an increase of 102%), accounting for 2% (with an increase of 1PCT).
In 2022q1, the revenue of distribution channels, supermarkets, direct sales and e-commerce was RMB 1.76 billion, RMB 320 million, RMB 190 million and RMB 74 million respectively, with an increase of 18.6%, – 0.7%, 295% and 138% respectively. By the end of 2022q1, the company had 1681 dealers, with a net increase of 29.
In terms of production capacity, in 2021, the total production capacity of flour and rice products will be 195000 tons (with an increase of 19%), the total production capacity of meat products will be 162100 tons (with an increase of 13%), the total production capacity of surimi products will be 269400 tons (with an increase of 19%), and the total production capacity of dish products will be 97700 tons (with an increase of 37%). In terms of capacity under construction, Hubei Anjing will gradually reach production capacity within 2022, and Guangdong Anjing is expected to be put into operation before 2023; Shandong Anjing and others are currently under construction as planned.
The established channel strategy remains unchanged, and the product channels go hand in hand
The company’s development strategy in 2022: 1) implement the business strategy of “combining two swords and advancing in three ways”; 2) Implement the channel strategy of “giving consideration to BC and making full use of the whole channel”;
3) adhere to the product pricing strategy of “high quality, medium price and high price” according to the idea of “making main dishes strong and listing main dishes”..
Business plan for 2022: 1) accelerate the gradual production of Hubei Anjing and other projects, and accelerate the investment and construction of Guangdong Anjing, Shandong Anjing, Taizhou phase III, Xiamen phase III and Honghu Anjing. 2) Continue to strengthen brand building and divide the launch direction into mass media, we media and online media. 3) Continue to promote new products: in terms of hot pot products, it is planned to launch sausage series, fish roe and shrimp slip, shrimp stuffed bag (national market), beef tendon meatball (regional market); In terms of flour and rice products, microwave pie and milk white steamed bread were launched; In terms of dish products, it has entered the accelerated period of innovation strategy, with rhythmic and phased innovation. 4) Strengthen the market expansion and development of the third and fourth tier cities, counties and townships. 5) Strengthen channel development and increase the proportion of sales.
Profit forecast
We are optimistic about the company’s entry into the field of prefabricated vegetables and Mr. frozen products is expected to become a new growth curve of the company. It is expected that the EPS from 2022 to 2024 will be 3.96/4.92/6.15 yuan, and the current share price corresponding to PE will be 28 / 23 / 18 times respectively, maintaining the “recommended” investment rating.
Risk tips
Macroeconomic downside risks, epidemic drag on consumption, less than expected promotion of Kwai, less than expected price increase, less than expected capacity expansion, more than expected rise in raw materials, etc.
