\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 305 Jiangsu Hengshun Vinegar-Industry Co.Ltd(600305) )
Event description:
The company released the 2021 annual report that the net profit attributable to the parent company in 2021 was 119 million yuan, a year-on-year decrease of 62.28%; The operating revenue was 1.893 billion yuan, a year-on-year decrease of 6.45%; The net profit attributable to the parent company in the first quarter was 772414 million yuan, a year-on-year decrease of 0.75%; The operating revenue was 572 million yuan, a year-on-year increase of 10.43%.
Event comments
The rise of raw materials superimposed on the increase of cost, and the performance is under pressure. In 2021, the company achieved an operating revenue of 1.893 billion yuan, a year-on-year decrease of 6.45%; The net profit attributable to the parent company was 772414 million yuan, a year-on-year decrease of 0.75%, mainly due to the decline in the sales revenue of main condiments and the increase in advertising, promotion and R & D investment. The net profit margin of the company’s 2021 sales was 6.25%, a year-on-year decrease of 9.64pct. Specifically, 1) the company’s 2021 gross profit margin was 37.58%, a year-on-year decrease of 3.18pct, mainly due to the rise in the cost of raw materials, packaging materials and equipment; 2) During the sales period, the expense rate was 29.21%, with a year-on-year increase of 6.9pct, of which the sales expense rate was 18.15%, with a year-on-year increase of 4.86pct, mainly due to the increase of advertising and market promotion expenses; The management expense ratio was 10.76%, with a year-on-year increase of 2.03pct, mainly due to the increase of employee compensation and depreciation expenses; The financial expense ratio was 0.3%, with a year-on-year increase of 0.01pct; The R & D expense ratio was 4.15%, with a year-on-year decrease of 1.28 PCT, mainly due to increased investment in product R & D.
Vinegar, the core product, declined significantly and its online sales were bright. In 2021, the revenue of condiments reached 1.846 billion yuan, a year-on-year decrease of 5.28%; Specifically, 1) by category, vinegar declined significantly, dragging down the overall growth. Among them, the revenue of vinegar / cooking wine was 1.211 billion yuan, with a year-on-year increase of – 10.25% / + 1.20% respectively. 2) in terms of regions, only North China achieved positive growth. In 2021, the revenue of East China / South China / Central China / West / North China was 9.65/2.94/3.11/1.57/119 million yuan, with a year-on-year increase of – 4.00% / – 9.65% / – 5.62% / – 8.64% / + 1.90%. 3) In terms of sub channels, the company uses the war zone under the marketing center to face the national layout, and vigorously expand online business at the same time. The distribution / direct sales revenue was 1.706 billion yuan and 140 million yuan respectively, with a year-on-year increase of – 3.07% / – 25.84%; Among them, online sales amounted to 185 million yuan, with a year-on-year increase of 34.60%, accounting for 10.02%, and a year-on-year increase of 2.97 PCT; Offline sales reached 1.661 billion yuan, a year-on-year decrease of 7.81%.
The performance of 2022 has improved, and we look forward to the reform to release dividends. 22q1 achieved a revenue of 572million yuan, a year-on-year increase of 10.4%, including a year-on-year increase of 14.1% in the main seasoning business. The performance improved, mainly due to the stable sales during the Spring Festival and the channel’s active stock under the condition of low inventory. According to the annual report, in 2022, the company strives to achieve the overall annual operation goal of more than 10% growth in the sales of its main condiment business and more than 5% growth in the net profit after deducting non recurring profits and losses. The profit growth rate is less than the revenue. The main reason is that the company realizes the national brand channelization through the marketing strategy of the Ninth World War area and really goes out of Southern Jiangsu and eastern China. It is expected that the sales cost in 2022 will still be relatively large. However, 2022 is an important task to implement the three-year action of state-owned enterprise reform. Press the “fast forward” key from the aspects of marketing center reform, introduction of high-end talents, transformation of scientific research achievements, internal management reform and so on, run out of the “acceleration” and expect the reform to release dividends.
Profit forecast, valuation analysis and investment suggestions: short-term profits are under pressure, and the performance is mainly dragged down by the rise of costs, selling expenses and management expenses. However, in the medium and long term, the company will continue to focus on its main business for development, deepen reform and increase power, and is expected to continue to grow by optimizing product structure and improving management efficiency. According to the profit forecast from 2021 to 2023, EPS is 0.13/0.16/0.18 yuan respectively, corresponding to the current stock price. PE from 2021 to 2023 is 79x / 63x / 58x respectively, maintaining the rating of “overweight-a”.
Risk tip: industry demand is lower than expected, raw material price fluctuation risk and food safety risk.
