\u3000\u3 Shengda Resources Co.Ltd(000603) 345 Fu Jian Anjoy Foods Co.Ltd(603345) )
Event: the company released the 2021 annual report and the first quarterly report of 2022, and achieved a revenue of 9.272 billion yuan in the whole year, a year-on-year increase of + 33.12%; The net profit attributable to the parent company was 682 million yuan, a year-on-year increase of + 13.00%; Deduct 560 million yuan of net profit not attributable to the parent company, a year-on-year increase of + 0.51%. Among them, 21q4 achieved a revenue of 3.176 billion yuan, a year-on-year increase of + 28.06%; The net profit attributable to the parent company was 188 million yuan, a year-on-year increase of – 16.11%; Deduct the net profit not attributable to the parent company of 178 million yuan, a year-on-year increase of – 17.88%. 22q1 company achieved a revenue of 2.339 billion yuan, a year-on-year increase of + 24.16%; The net profit attributable to the parent company was 204 million yuan, a year-on-year increase of + 17.65%; Deduct the net profit not attributable to the parent company of 178 million yuan, a year-on-year increase of + 13.99%.
The main business grew steadily, and the volume of dish products expanded rapidly. In 2021, the company’s revenue of flour and rice products / meat products / surimi products / dish products reached RMB 2.054/21.42/34.78/1.429 billion respectively, with a year-on-year increase of + 23.6% / + 19.16% / + 23.07% / + 112.41%. Among them, the rapid growth of dish products is mainly due to the high growth rate of large single products of the company’s key dishes, the rapid rise of Mr. frozen products and the combined contribution of XINHONGYE. The revenue of 22q1 company was + 24.16% year-on-year. If the impact of consolidation is excluded, the same ratio of 22q1 revenue is about + 8.5%. Under the pressure of 21q1 high base and 22q1 epidemic disturbance, the main business still achieved high single digit growth. In terms of categories, 22q1 company’s revenue of flour and rice products / meat products / surimi products / dishes products was 5.11/4.79/7.50/516 million yuan respectively, with a year-on-year increase of + 16.59% / + 0.04% / + 1.30% / + 129.88%. The epidemic repeatedly led to the damage of the company’s end B. The growth rate of meat products and surimi products with a higher proportion of end B slowed down significantly, and the performance of flour and rice products and dishes products more suitable for home dining was better. In terms of sub channels, the company’s dealers / supermarkets / special communications direct sales / e-commerce channels achieved revenue of RMB 77.23/9.23/4.45/182 million respectively in 2021, a year-on-year increase of + 31.57% / + 9.53% / + 173.41% / + 101.65%; 22q1 achieved revenue of RMB 1.758/3.22/1.86/0.74 billion respectively, with a year-on-year increase of + 18.63% / – 0.74% / + 295.06% / + 138.11%, of which the distribution channel grew steadily. The special channel was formed by the merger of the company’s original special channel and the newly established direct department in 2021, with a bright growth rate.
The cost is upward and the profit is under pressure. It is expected to improve the profitability through fine operation in 22 years. The company’s gross profit margin in 2021 was 22.12%, down 3.56 PCT year-on-year, mainly due to: (1) the sharp rise in the prices of raw materials such as oil and soybean protein, and the increase in labor, logistics costs and manufacturing expenses; (2) The gross profit margin of new frozen products and XINHONGYE company is lower than the original main business of the company. In 2021, the company’s sales expense rate / management expense rate / R & D expense rate / financial expense rate were 9.15% / 3.45% / 0.95% / 0.01% respectively, with a year-on-year increase of -0.1pct / – 0.81pct / – 0.11pct / – 0.05pct. Overall, the company’s net interest rate in 2021 was 7.41%, a year-on-year increase of -1.26pct. The gross profit margin of 22q1 company was 24.20%, year-on-year -2.28pct, and there was still pressure on the cost side. However, in 2022, the company will optimize the control of marketing expenses and carry out fine management on the profit side, and the net interest rate is expected to rise steadily in the future.
“Self production + supply chain OEM + M & a” go hand in hand, and the quantity of prefabricated vegetables can be expected. Mr. frozen products’ net interest rate reached 9% from January to February of 22 years, the profitability was significantly improved, and the scale effect began to be reflected. In March, the company announced that it expected to invest a total of 1 billion yuan to build Anjing prefabricated dishes production project and enhance the company’s own capacity reserve of prefabricated dishes. On April 26, the company announced that it plans to acquire 70% equity of xinliuwu food in two steps with a total of no more than 644 million yuan, which can enhance the company’s control over upstream surimi on the one hand and deepen the layout in the field of crayfish prefabricated dishes on the other hand. The company has made significant progress in the three modes of supply chain, self-produced and M & A of prefabricated vegetable business, and the volume can be expected in the future.
Investment suggestion: the company’s main business grows steadily. Through the three ways of “self production + supply chain OEM + M & a”, the company cultivates the second growth curve of prefabricated vegetables, and the income can grow in a high period; The profit side is expected to improve the investment efficiency and profitability through fine operation. It is expected that the company will achieve a revenue of RMB 11.736144.51/17.579 billion from 2022 to 2024, with a year-on-year growth rate of 26.6% / 23.1% / 21.6%; The net profit attributable to the parent company was 979 / 1254 / 1554 million yuan, with a year-on-year growth rate of 43.5% / 28.2% / 23.9%, corresponding to EPS of 3.34/4.28/5.30 yuan respectively, maintaining the “buy” rating.
Risk warning: the cost of raw materials is higher than expected; Industry competition intensifies; The epidemic has repeatedly affected demand
