\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 08 Zhongjing Food Co.Ltd(300908) )
Events
On the evening of April 26, 2022, the company released the first quarterly report of 2022: the revenue of Q1 in 2022 was 199 million yuan (- 3.96%); The net profit attributable to the parent company is 17 million yuan (- 58.46%); Deduct non net profit of RMB 12 million (- 66.89%).
Key investment points
The cost and selling expenses increased, and the profit side was under pressure
The year-on-year decline in Q1 revenue in 2022 is expected to be mainly due to the impact of the epidemic on end consumer demand, and the decline in net profit is mainly due to the rise in the cost of raw materials pepper, soybean oil and beef. The gross profit margin of Q1 in 2022 was 38.03% (-4.37pct), mainly due to the rise of raw material costs; The net profit margin is 8.42% (-11.16pct), which is mainly due to the decline of gross profit margin and the company’s increase in advertising and brand publicity, resulting in higher sales expenses and reduced investment income.
In 2022, the ratio of Q1 sales expenses / administrative expenses / financial expenses was 23.25% / 7.35% / – 0.87%, with a year-on-year increase of + 9.94 / – 1.81 / + 0.88pct. The increase in sales expense rate is mainly due to the increase in advertising and brand publicity, investment in CCTV Spring Festival Gala advertising, CCTV television, high-speed railway, ladder media advertising and naming fees.
Make efforts in many aspects, and the growth can be expected in 2022
In 2022, the company will focus on the following aspects:
On channels: promote the sinking and deep cultivation of offline channels, continuously increase effective terminal coverage, and build an integrated marketing network with Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integration and covering end B and end C.
Category: give priority to flavor ingredients and condiments, and speed up the extension of the industrial chain of quick-frozen prefabricated food.
Marketing: focus on “little girl picking mushrooms” and “lentinan”, shape the brand image, and adhere to the hard and wide launch of elevators, high-speed railways, subways and so on.
In terms of production capacity: orderly promote the construction of the production project with an annual output of 12 million tons of seasoning ingredients and 60 million bottles of seasoning sauce
Profit forecast
The company continues to enhance its brand influence, the category is expected to extend horizontally, and actively layout the integrated marketing network. With the decline of costs and the return of expenses to normal investment, the profit elasticity is expected to be released. We expect that the EPS from 2022 to 2024 will be 1.32/1.54/1.81 yuan, and the current share price corresponding to PE will be 26, 22 and 19 times respectively. It will be covered for the first time and given a “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, etc
