\u3000\u3 Shengda Resources Co.Ltd(000603) 317 Sichuan Teway Food Group Co.Ltd(603317) )
Events
On the evening of April 25, 2022, the company released the first quarterly report of 2022: the revenue of Q1 in 2022 was 629 million yuan (the same as + 20.60%); The net profit attributable to the parent company is 100 million yuan (the same as + 25.27%); Deduct non net profit of 98 million yuan (the same as + 27.26%).
Key investment points
A good start was achieved, and the gross profit rate was slightly under pressure
In 2022, Q1 revenue and net profit attributable to the parent company achieved high growth year-on-year, and made a good start in the first quarter. The gross profit margin of Q1 in 2022 is 35.95% (- 2.10pct), and the decline of gross profit margin is expected to be mainly due to the rise of raw material cost; The net interest rate is 15.93% (+ 0.57pct), and the increase of net interest rate is mainly due to the decrease of expense investment.
In 2022, the ratio of Q1 sales expenses / administrative expenses / financial expenses was 13.01% / 4.61% / – 0.73%, with a year-on-year increase of -4.92 / + 0.03 / + 1.91pct. The decline in sales expense rate is mainly due to the reduction of advertising and more accurate cost delivery; The rate of administrative expenses is basically the same; The increase in financial expense rate is due to the decrease in the average balance of bank deposits and the decrease in interest income due to more bank deposits being used for financial management.
Chinese dishes have achieved rapid growth, and customized dishes have performed well
In terms of products, the revenue of 2022q1 hot pot seasoning / Chinese dishes / sausage bacon / chicken essence / spicy sauce was RMB 241 / 3.49/0.05/0.19/09 million, a year-on-year increase of – 3.24% / + 45.00% / – 35.26% / + 87.32% / + 35.39%, accounting for 38.38% / 55.50% / 0.87% / 2.98% / 1.47% respectively.
In terms of regions, the Southwest / Central China / East China / Northwest / North China / Northeast / South China / export achieved revenue of RMB 175 / 1.06/1.51/0.58/0.60/0.30/0.43/05 million, a year-on-year increase of + 17.78% / + 20.59% / + 20.70% / + 23.50% / + 43.08% / – 8.49% / + 22.69% / + 110.87%, accounting for 27.84% / 16.87% / 24.08% / 9.29% / 9.53% / 4.78% / 6.78% / 0.83% respectively.
In terms of sales channels, the revenue of dealers / customized meal adjustment / e-commerce / direct business supermarket / foreign trade was 523 / 0.52 / 0.33 / 0.11 / 08 million yuan, a year-on-year increase of + 23.42% / + 12.95% / – 20.20% / + 91.28% / + 230.90%; Accounting for 83.10% / 8.26% / 5.32% / 1.81% / 1.30% respectively. In 2022, Q1 dealers decreased by 41 to 3368.
Products and channels work together, and the task is expected to be completed in 2022
In 2022, the company plans to increase its operating revenue by no less than 15% year-on-year and net profit by no less than 30%. The layout is mainly from the following aspects:
1) products: continue to supplement the Dahongpao product line. The price increase of some products in October will help to release the profit elasticity in 2022.
2) in terms of channels: haorenjia brand focuses on the C-end, Dahongpao brand expands the small b-end business on the basis of the C-end business, customized meal tune focuses on the large b-end business, and the new retail business has become an important engine of performance growth.
Profit forecast
Looking forward to the future, we believe that the compound condiment industry has broad space and rapid development, and is expected to maintain double-digit growth. As the impact of the epidemic subsides and the growth rate of the industry recovers, the company, as the leading enterprise in the compound condiment industry, has made concerted efforts in products and channels, and the superimposed cost is expected to be more accurate. Under the low base, it is expected to achieve rapid growth in 2022. We expect EPS to be 0.32/0.41/0.52 yuan from 2022 to 2024, and the current share price corresponding to PE is 52, 40 and 32 times respectively, maintaining the “recommended” investment rating.
Risk tips
Macroeconomic downside risks, consumption dragged down by the epidemic, intensified industrial competition, less than expected regional expansion, less than expected capacity construction or utilization, less than expected price increase, etc.
