\u3000\u3 Bohai Water Industry Co.Ltd(000605) 338 Zhongyin Babi Food Co.Ltd(605338) )
In the past 22 years, Q1's revenue increased by 22.4% year-on-year, and its performance rose steadily. In the first quarter of 2022, the company's revenue reached 310 million yuan (+ 22.4%), and the net profit attributable to the parent company was 01 million yuan (- 89.5%). The sharp decline in net profit was mainly due to the negative impact of the decline in the fair value of Eastroc Beverage (Group) Co.Ltd(605499) shares indirectly held, deducting 39 million yuan (+ 192.61%). On a month on month basis, when the company's revenue was affected by seasonal factors such as the Spring Festival and fell by nearly 23% on a month on month basis, the profit was basically flat on a month on month basis, and the overall profitability improved steadily.
The price of raw materials fluctuated at a low level, the cost was properly controlled, and the profitability increased steadily under the low base. The cost price of raw materials mainly pork remained low and fluctuated. The gross profit margin of the company in the first quarter of 22 years reached 37.4%, an increase of 4.7pcts compared with 32.7% in the same period last year; At the same time, the company has completed price locking for main raw materials, and it is expected that the gross profit margin will remain at the current high position in the future. In the same period of last year, the company increased the investment of sales expenses in 21q1. Under the high base, the sales rate in Q1 in 22 years decreased by about 7.6pcts to 4.4%; The total management fee increased by about 12.5% compared with the same period last year, and the net profit rate of 2020ts increased steadily by about 12.5% compared with the same period last year.
The acquisition of brands in Central China was successfully consolidated at the end of March, and the performance growth is expected to further accelerate. The company successfully acquired the central China chain brand, and the target performance will be officially determined and consolidated from March 31. After the acquisition, the company will quickly expand its stores, increase brand awareness and influence, and seize market share. It is estimated that the average sales of brand stores in Central China are still quite different from the average level of Zhongyin Babi Food Co.Ltd(605338) East China stores. In the future, with the empowerment of the company's efficient management system and supply chain network, the income level and profitability are expected to be further improved to help accelerate the growth of the company's performance. As the preconditions for the acquisition have clearly required that the acquired Huazhong brand must realize positive net profit after deduction during the 12-month trial operation, the consolidation will bring positive benefits to the company.
Risk tip: the repeated epidemic has led to the decline of store revenue and the obstruction of store expansion.
Investment advice: maintain the "buy" rating.
The impact of the Shanghai epidemic on the company's performance is limited. Although the offline store business has not been carried out smoothly, due to the surge in consumer community group purchase demand and the company's undertaking a large number of guarantee orders as a government guarantee enterprise, the factory has always maintained full load operation; By the end of April, Shanghai stores will resume normal operation in an orderly manner, superimposing the consolidation of the acquisition targets in Central China, and the performance is expected to achieve rapid growth. We keep the profit forecast unchanged, and expect EPS of 22-24 years to be 1.01/1.27/1.53 respectively (without considering the changes in the fair value of Eastroc Beverage (Group) Co.Ltd(605499) company's shares held by the company), corresponding to pe31 5 / 25.2/20.9x, maintain the "buy" rating.
