\u3000\u3 Shengda Resources Co.Ltd(000603) 027 Qianhe Condiment And Food Co.Ltd(603027) )
Event: the company disclosed the annual report of 2021 and the first quarterly report of 2022. In 2021, the company realized operating income / net profit attributable to parent company / net profit attributable to non parent company deducted by 1.925221/218 billion yuan, with a year-on-year increase of + 13.70% / + 7.58% / + 8.26%, of which 21q4 realized operating income of 570 million yuan, with a year-on-year increase of + 20.95%, and net profit attributable to parent company / net profit attributable to non parent company deducted by 89 / 86 million yuan, reversing losses year-on-year. 22q1 achieved operating income / net profit attributable to parent company / deduction of net profit not attributable to parent company of RMB 482 / 0.55 / 54 million, with a year-on-year increase of + 0.93% / 38.47% / 27.12%. 21q4 was slightly higher than expected and 22q1 was lower than expected.
The adjustment of product structure has led to the decline of ton price, and the foreign market continues to develop. In terms of products, in 2021, soy sauce / vinegar achieved revenue of 1.182322 billion yuan respectively, with a year-on-year increase of + 12.15% / 10.02%, sales volume of + 30.18% / 13.51% and ton price of - 13.85% / - 3.07% year-on-year, mainly due to the decline of consumption power and product structure adjustment affected by the epidemic, and the proportion of medium and low-end products increased. In 21q4, the revenue of soy sauce / vinegar reached 342 / 91 million yuan, a year-on-year increase of + 18.01% / 35.03%, mainly due to the advance of the Spring Festival, and the dealers increased the stock at the end of 2021. 22q1 soy sauce / vinegar achieved revenue of 290 million yuan / 79 million yuan respectively, a year-on-year increase of - 1.32% / + 2.56%. In terms of regions, the distribution of 22q1 Eastern / Southern / central / northern / western regions achieved a year-on-year revenue of -8.02% / - 3.09% / + 12.64% / + 15.72% / + 0.98%. Except for the eastern and southern regions damaged by the epidemic, other regions grew rapidly. There are 1899 distributors, of which 35 / 27 are in the middle / north respectively. The foreign market continues to develop. In the smooth development of traditional channels in the north, the proportion continues to increase.
The rising cost of raw materials put pressure on the gross profit, and the sales expense of 22q1 contracted and thickened the net profit. In 2021, the gross profit margin was 40.38%, with a year-on-year increase of -3.47pct, mainly due to the sharp increase of procurement costs throughout the year, in which the direct materials of soy sauce / vinegar were + 25.40% / + 21.17% year-on-year respectively. The sales / management / financial expense ratio was + 3.21 / - 0.25 / + 0.05pct respectively, and the advertising expense was + 123% year-on-year to RMB 229 million, which increased the sales expense. The comprehensive net interest rate was 11.50%, with a year-on-year increase of -0.65pct. 22q1 achieved a gross profit margin of 34.98%, with a year-on-year increase of -8.37pct, mainly due to the high price of raw materials. The sales / management / financial expense ratio was -10.63 / + 0.03 / - 0.17pct respectively, the investment in advertising expenses shrank, and the comprehensive net interest rate was 11.46%, with a year-on-year increase of + 3.11pct.
The goal of 2022 is stable, and differentiated positioning helps long-term development. Qianhe positioned zero addition in differentiation, selected niche markets to seek breakthroughs, actively adjusted the organizational structure, and launched equity incentives to reflect the company's growth determination. According to the company's announcement, in 2022, the company plans to increase the operating revenue by 18.5% year-on-year, the net profit attributable to the parent company by 9.34% and the recurring net profit attributable to the parent company by 6.95% year-on-year. We believe that although 22q2 is affected by the epidemic or will still be under pressure, and the trend of raw materials throughout the year is not clear, the annual goal is relatively conservative, and it is expected to be successfully completed under the development of channel expansion superposition area.
Investment suggestion: we estimate that the company's revenue from 2022 to 2024 will be RMB 2.281 billion, RMB 2.730 billion and RMB 3.272 billion respectively, and the net profit will be RMB 303 million, RMB 389 million and RMB 480 million respectively (including equity incentive expenses). We maintain the investment rating of Buy-A, and the 12-month target price is RMB 22.34, which is equivalent to the dynamic P / E ratio of 55x in 2023
Risk tips: macroeconomic and policy risks, food safety problems, and the risk that the epidemic recovery is less than expected
