\u3000\u3 Shengda Resources Co.Ltd(000603) 027 Qianhe Condiment And Food Co.Ltd(603027) )
Event: the company released its annual report for 2021. In 2021, the company achieved an operating revenue of 1.925 billion yuan, a year-on-year increase of 13.7%, and a net profit attributable to the parent company of 221 million yuan, a year-on-year increase of 7.58%; Among them, 21q4 achieved an operating revenue of 570 million yuan, a year-on-year increase of 21.0%, a net profit attributable to the parent company of 89 million yuan and a loss of 18 million yuan in the same period last year.
The company also announced the first quarterly report of 2022. 22q1 achieved an operating revenue of 482 million yuan, a year-on-year increase of 0.9%, and a net profit attributable to the parent company of 55 million yuan, a year-on-year increase of 38.5%.
Key investment points
21q4 achieved rapid growth, and 22q1 revenue growth was under pressure. Under the expansion of low-cost soy sauce channels, the company's revenue of 21q4 achieved rapid growth. The company's revenue of 21 / 21q4 was 1.925570 billion yuan, with a year-on-year increase of + 13.7% / + 21.0% respectively. In terms of products, the company's revenue of soy sauce / vinegar in 21 years was 1.182322 billion yuan, with a year-on-year increase of + 12.2% / + 10.0%, of which 21q4 was + 18.0% / + 35.0%; In terms of regions, the national layout of the company accelerated in 2021, with revenue of 388 / 1.21 / 180 / 267 / 942 million yuan in the East / South / central / North / west respectively, with a year-on-year increase of + 17.3% / + 51.7% / + 29.4% / + 10.4% / + 7.3%, of which the southern, central and northern regions achieved rapid growth.
At the same time, the company achieved a revenue of 482 million yuan in 22q1, a year-on-year increase of + 0.9%. Under the background of high base, the impact of the epidemic is superimposed, and the income end is slightly under pressure. By product: in 22q1, the company's soy sauce / vinegar revenue was 290 / 79 million yuan respectively, a year-on-year increase of - 1.3% / + 2.6%; In terms of regions, the revenue of 22q1 company in the East / South / central / North / West was 85 / 0.27 / 0.43 / 0.72 / 250 million yuan respectively, with a year-on-year increase of - 8.0% / - 3.1% / + 12.6% / + 15.7 / + 1.0%. The income affected by the epidemic in the East and South decreased slightly. It is estimated that with the gradual stabilization and precise prevention and control of the national point epidemic in 22 years, the demand is expected to improve marginally. In addition, the company actively expanded channels in the early stage. From the perspective of the number of dealers, the number of dealers of the company at the end of 22q1 increased by 102 to 1899 compared with the beginning of the year. It is expected that the business situation will gradually improve.
Against the background of rising costs, the gross profit margin of 21 / 22q1 is under pressure. The gross profit margin of the company in the 21st year was 40.38%, year-on-year -3.47 PTCs, the sales expense ratio / management expense ratio was 20.15% / 3.38%, year-on-year + 3.21 / - 0.25 PTCs, and the net profit margin of the company in the 21st year was 11.50%, year-on-year -0.65 PTCs; The gross profit margin of 22q1 company was 34.98%, year-on-year -8.37ptcs, the sales expense ratio / management expense ratio was 15.06% / 3.25%, year-on-year -10.63 / + 0.03ptcs, and the net profit margin of 22q1 company was 11.46%, year-on-year + 3.11ptcs. In terms of gross profit margin in 21 years, due to the rising cost of raw materials and low gross profit, the volume of products has been under pressure. 22q1 due to the rise of raw materials and the increase of transportation costs, the gross profit margin is under pressure. However, under the background of the company's advertising expenses shrinking, the level of net interest rate remained stable.
Expect the improvement of demand margin and continue to release profit elasticity. In the past 22 years, after the spot epidemic situation in the condiment industry has gradually stabilized, the overall profitability of the industry is expected to rise, and the leading enterprises will still enjoy the dividend of concentration improvement. From the perspective of the company: 1) zero addition soy sauce, as the core category of the company's continuous focus, still has a large growth space in the trend of consumption upgrading and health; 2) The company has strengthened the expansion of distribution channels, gradually promoted to central and North China based on Southwest and East China, and continuously strengthened the construction of e-commerce channels. The process of nationalization is also advancing steadily. With the recent implementation of a new round of equity incentive and the continuous production capacity investment of the company, the company's performance remains good in the long run.
Investment suggestion: considering the impact of the epidemic, we predict that the operating revenue of the company from 2022 to 2024 will be 22.90/27.32/32.77 yuan respectively, with a year-on-year increase of 19.0% / 19.3% / 20.0%; The net profit attributable to the parent company was 308 / 402 / 483 million yuan, with a year-on-year increase of 38.9% / 30.7% / 20.1%; The corresponding EPS is 0.39/0.50/0.60 yuan respectively, maintaining the company's "overweight-a" investment rating.
Risk warning: repeated outbreaks in some areas; Industry competition intensifies; The cost of raw materials is rising rapidly; Food safety issues.
