\u3000\u3 China Vanke Co.Ltd(000002) 507 Chongqing Fuling Zhacai Group Co.Ltd(002507) )
Event: the company released the first quarter report of 2022, and 22q1 achieved a revenue of 689 million yuan, a year-on-year decrease of 2.9%; The net profit attributable to the parent company was 214 million yuan, a year-on-year increase of 5.4%; The net profit deducted from non parent company was 195 million yuan, a year-on-year decrease of 3.1%. The gross profit margin of the company decreased by 227.7 percentage points year-on-year; The net interest rate attributable to the parent company was 31.1%, with a year-on-year increase of 2.4 percentage points; The net interest rate after deduction of non parent company was 28.3%, down 0.1 percentage point year-on-year.
Comments:
Under the high base, the revenue growth of 22q1 is in line with expectations. The company has adjusted the ex factory price of products since the middle of November 21. The price adjustment of 22q1 has been basically completed, and the new price has been transmitted to the terminal. Due to the impact of product price increase on sales volume, and under the high base, the company’s 22q1 revenue decreased slightly year-on-year. At present, the company has strengthened the distribution of goods through channels, increased the willingness of terminals to take goods, and increased the shipment of dealers. The epidemic situation has promoted the consumption of mustard, and home isolation has increased the consumption scene of mustard. 22q1 contract liabilities amounted to 145 million yuan, with a year-on-year increase of 60.83%. Dealers have a strong willingness to pay. We expect that after 22q2, the company’s sales growth is expected to recover.
22q1 profit side basically meets expectations. The gross profit margin of 22q1 company was 52.4%, down 7.7 percentage points year-on-year, mainly due to the fact that 22q1 company still uses high-priced green vegetable head raw materials and the transportation expenses are adjusted to the operating cost. In 21 years, the company’s cost of green vegetables was about 1100 yuan / ton. The overall purchase price of 22 young vegetables was controlled at about 800 yuan / ton, and the cost of green vegetables decreased significantly. It is generally used in succession around May of that year. We expect 22q2 to make a significant contribution to the cost dividend. 22q1 sales expense ratio was 17.9%, down 6.3 percentage points year-on-year, mainly due to the reduction of advertising investment. 22q1 management expense ratio was 3.2%, with a year-on-year increase of 1.1 percentage points, mainly due to the increase in employee compensation and amortization of intangible assets.
Profit forecast and investment rating: after looking forward to 22q2, multiple factors such as the decline of raw material costs, the reduction of advertising expenses and the effect of price increase will contribute to the performance elasticity. In the long run, the sinking of channels and the extension of categories promote the increase of volume, the increase of residents’ income supports the rise of price, and there is room for both volume and price to improve. We expect that the company’s EPS in 22-24 years will be 1.12/1.35/1.57 yuan respectively, and the corresponding PE will be 31.50/26.21/22.54 times respectively, maintaining the “buy” rating.
Risk factors: the price rise of raw materials is higher than expected; Sales growth was less than expected.
