\u3000\u3 Shengda Resources Co.Ltd(000603) 345 Fu Jian Anjoy Foods Co.Ltd(603345) )
Key investment points
Event: the company released the annual report of 2021 and the first quarterly report of 22 years, and achieved a revenue of 9.27 billion yuan in 21 years, with a year-on-year increase of 33.1%; The net profit attributable to the parent company was 680 million yuan, a year-on-year increase of 13%; Among them, 21q4 achieved a revenue of 3.18 billion yuan, a year-on-year increase of 28.1%, and a net profit attributable to the parent company of 190 million yuan, a year-on-year decrease of 16.1%. At the same time, it is proposed to distribute a cash dividend of 6.99 yuan (including tax) for every 10 shares. 22q1 company achieved a revenue of 2.34 billion yuan, a year-on-year increase of 24.2%; The net profit attributable to the parent company was 204 million yuan, a year-on-year increase of 17.7%, exceeding market expectations.
The main business income increased rapidly, and the outbreak trend of dishes continued. In terms of business, the company's revenue of quick-frozen surimi / quick-frozen meat products / quick-frozen noodles and rice products in the whole year of 21 was 3.48/21.4/2.05 billion yuan respectively, with a year-on-year increase of + 23.1% / + 19.2% / + 23.6% respectively; Driven by the release of production capacity and the expansion of new products, the two traditional main businesses of hot pot ingredients and rice noodles maintained rapid growth. Thanks to the rapid and large-scale production of star single products such as Mr. frozen products' shrimp sliding products and XINHONGYE crayfish products, dishes achieved explosive growth, and the revenue increased by 112.4% to 1.43 billion yuan. In terms of channels, the revenue growth rate of dealers / supermarkets / special channels / e-commerce channels in 21 years was 31.6% / 9.5% / 173.4% / 101.7% respectively. The decline in the growth rate of supermarkets' channels is mainly due to the decline in traffic under the impact of community channels and the high base number last year; The company established a direct sales department to build a special direct sales system for large groups and b-end major customers; In addition, strengthen cooperation with e-commerce in the front warehouse, and achieve high growth in Tetong and e-commerce channels. In terms of subregions, the revenue growth rate of the company in all regions nationwide exceeded 20%, and the revenue in Central China increased by + 55.3% year-on-year, mainly due to the concentration of XINHONGYE's main sales areas in Central China. The nationalization process of the company is smooth, and the sinking of channels continues to advance. In 21 years, the number of dealers has increased from 619 to 1652.
Raw material costs continued to rise and profitability declined slightly. In 2021, the company's gross profit margin was 22.1%, a year-on-year decrease of 3.6pp; The gross profit margin of 21q4 / 22q1 was 22.4% / 24.2% respectively, with a year-on-year increase of + 2.3 / - 0.5pp. The decline of gross profit margin is mainly affected by 1) the continuous upward price of raw and auxiliary materials such as soybean, oil and packaging materials; 2) Personnel wages, technical transformation expenses and freight have increased; 3) Mr. frozen products and XINHONGYE company have low gross profit margin. In terms of expense rate, the sales expense rate in 21 years decreased by 0.1pp to 9.2% year-on-year, mainly due to the higher growth rate of the company's revenue than that of sales expenses and the improvement of expense use efficiency; The management expense ratio decreased by 1.2pp to 5% year-on-year. The cost side continued to be under pressure, resulting in the company's overall net profit margin falling by 1.3pp to 7.4%.
Channel products develop together, with high performance and long-term growth. 1) In terms of nationalization, the company actively extends to the low-level market, strengthens the development of third and fourth tier cities, and further strengthens the market expansion at the county and township levels; In terms of channels, we will strengthen the development of e-commerce, special communication, direct marketing and business super 020. 2) In terms of products, hot pot products continue to take lock fresh packaging as the leader and Linglong bag as the boost, forming a full coverage of consumers through taste combination and grade differentiation; Dish products continue the strategy of "OEM + asset + M & a", and continue to launch explosive products and self-developed innovative products that meet the needs of the industry, so as to seize share in the period of market expansion. 3) In terms of production capacity, the company will follow the production base layout strategy of "selling real estate". Hubei Anjing project is expected to reach production capacity in 22 years, and the expansion of production capacity will escort the growth of performance. 4) The company plans to invest 640 million yuan to acquire xinliuwu in two steps, on the one hand, consolidate the advantages of surimi upstream supply chain; On the other hand, enrich the competitive advantage of prefabricated dishes. The quick freezing industry maintains double-digit high-speed growth, the company's leading position is stable, the business strategy is clear, and the future performance can be expected to increase.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 3.25 yuan, 4.20 yuan and 5.24 yuan respectively, and the corresponding dynamic PE will be 35 times, 27 times and 21 times respectively, maintaining the "buy" rating.
Risk tips: the risk of price fluctuation of raw materials, the risk of repeated covid-19 epidemic, and the risk of intensified market competition.
