\u3000\u3 Shengda Resources Co.Ltd(000603) 317 Sichuan Teway Food Group Co.Ltd(603317) )
Event: the company released the first quarter report of 2022, and 22q1 achieved a revenue of 629 million yuan, a year-on-year increase of 20.6%; The net profit attributable to the parent company was 100 million yuan, a year-on-year increase of 25.3%; Net profit deducted from non parent company was 98 million yuan, with a year-on-year increase of 27.3%.
Comments:
Under the high base, the revenue of 22q1 company can still maintain steady growth. 22q1’s revenue increased by 20.6% year-on-year, mainly due to the low channel inventory at the beginning of the period, the superposition of the peak consumption season of the Spring Festival and the increase of crayfish seasoning and preparation at the end of the season. In terms of products, the revenue of 22q1 hot pot seasoning and Chinese dish seasoning increased by – 3.2% and 45.0% year-on-year respectively. The revenue of hot pot seasoning decreased year-on-year, mainly due to the high base in the same period last year and the weakening of sales promotion year-on-year. In terms of regions, the revenue growth of 22q1 Southwest / Central China / East China / Northwest / North China / Northeast / South China was 17.8% / 20.6% / 20.7% / 23.5% / 43.1% / – 8.5% / 22.7% respectively. The growth of important markets such as southwest, central China and East China was steady. In terms of channels, the revenue of 22q1 dealers / customized meal dispatching / e-commerce / direct business supermarket / foreign trade channels increased year-on-year by 23.4% / 13.0% / – 20.2% / 91.3% / 230.9% respectively. The revenue of e-commerce channels decreased year-on-year, mainly due to the reduction of expenses.
In 22q1, the cost investment was reduced, the gross sales difference was significantly improved, and the performance exceeded expectations. The gross profit margin of 22q1 company was 36.0%. After reducing the transportation expenses, it decreased by 0.32 percentage points year-on-year, mainly due to the rise of raw material prices. The sales expense rate of 22q1 was 13.0%, a year-on-year decrease of 4.9 percentage points, mainly due to the reduction of advertising investment. 22q1 gross sales difference was 22.9%, an increase of 3.2 percentage points year-on-year. 22q1 management expense ratio was 3.4%, a year-on-year decrease of 0.2 percentage points, mainly due to the scale effect. 22q1 R & D expense rate was 1.2%, an increase of 0.2 percentage points year-on-year. 22q1 net interest rate was 15.9%, with a year-on-year increase of 0.6 percentage points, and the net interest rate improved year-on-year.
The cost investment is more accurate, and the company management is improved. The company’s revenue target is to grow steadily, pay more attention to building its own competitiveness, and adhere to the strategy of long-term development. The personnel team has become stable, the internal structure has been adjusted in place, and the implementation of the company’s policies has been smoother. In 22 years, the company will invest expenses according to the market conditions, and control the expenses more accurately, which is improved compared with the past.
Profit forecast and investment rating: looking forward to 2022, the company’s channel inventory is benign. We expect that the cost of processing temporary products should be significantly reduced year-on-year, and the advertising cost will also be reduced year-on-year. Therefore, the sales expense rate will drop significantly. Under the scale effect, the unit manufacturing cost and labor cost will also decrease. As the leader of compound condiments, the company has brand and channel advantages. We expect that the company’s EPS in 22-24 years will be 0.41/0.54/0.72 yuan respectively, and the corresponding PE will be 39.96/30.40/22.93 times respectively, maintaining the “buy” rating.
Risk factors: the price rise of raw materials is higher than expected; The promotion of new products is less than expected; Industry competition intensifies
