\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 872 Jonjee Hi-Tech Industrial And Commercial Holding Co.Ltd(600872) )
Events
On the evening of April 24, 2022, the company released the 2021 annual report and the first quarterly report of 2022: in 2021, the company achieved a revenue of 5.016 billion yuan (year-on-year – 0.15%), a net profit attributable to the parent company of 742 million yuan (year-on-year – 16.63%), and a net profit not attributable to the parent company of 718 million yuan (year-on-year – 19.98%); In 2022q1, the revenue was 1.347 billion yuan (year-on-year + 6.63%); The net profit attributable to the parent company was 158 million yuan (year-on-year – 9.46%), and the non net profit deducted was 155 million yuan (year-on-year – 8.59%).
Key investment points
The fourth quarter of 2021 improved month on month, and the performance in the first quarter of 2022 was under pressure
According to the annual report, the revenue of 2021q4 was 1.704 billion yuan (year-on-year + 29.70%), the net profit attributable to the parent was 375 million yuan (year-on-year + 68.93%), and the net profit not attributable to the parent was 364 million yuan (year-on-year + 49.50%).
Meiweixian company achieved a revenue of 4.618 billion yuan (- 7.24%) and a net profit attributable to the parent company of 647 million yuan (- 31.04%) in 2021; Among them, the revenue of 2021q4 was 1.340 billion yuan (+ 6.69%), and the net profit attributable to the parent company was 209 million yuan (+ 10.58%), which improved month on month. It is expected that it is mainly due to the price increase. In 2021, the company’s gross profit margin was 34.87% (- 3.39pct), and in 2021q4, the gross profit margin was 38.46% (+ 1.1pct). The decline in the whole year was mainly due to the rise of raw material costs, and the improvement in the fourth quarter was mainly due to the price increase. The ratio of sales expenses / administrative expenses / financial expenses in 2021 was 8.06% / 8.30% / 0.39%, with a year-on-year increase of + 0.31 / – 0.19 / + 0.13pct. The increase of sales expense rate is mainly due to the increase of advertising expenses, conference expenses and e-commerce expenses; The decline of management expense rate is mainly due to the decrease of performance salary provision, which affects the decrease of personnel salary expenditure; The increase of financial expense rate is mainly due to the year-on-year increase of interest expenditure in the current period. The net profit margin in 2021 was 15.33% (-3.63pct), mainly due to the decline of gross profit margin, and the net profit margin in 2021q4 was 22.77% (+ 4.26pct), mainly due to the increase of gross profit margin and the decline of expense rate.
Meiweixian company’s 2022q1 revenue was 1.229 billion yuan (- 0.51%), and the net profit attributable to the parent company was 136 million yuan (- 27.74%), which is expected to be mainly due to the impact of the epidemic, the decline of consumer demand and the continuous high price of raw materials. The gross profit margin of 2022q1 company is 32.30% (- 3.20pct), of which the gross profit margin of Meiweixian company is 30.71% (- 5.11%), which is expected to be mainly due to the high price of raw materials. The ratio of sales expenses / administrative expenses / financial expenses was 8.79% / 7.96% / – 0.06%, respectively + 0.13 / – 1.21 / – 0.39pct year-on-year. The net profit margin of 2022q1 is 12.54% (-2.26pct), mainly due to the decline of gross profit margin.
Volume and price declined slightly, and online business grew rapidly
In terms of products, in 2021, the revenue of soy sauce / chicken powder / edible oil was RMB 2.827/5.46/490 billion respectively, with a year-on-year increase of – 9.48% / + 10.46% / – 18.74% respectively. 2022q1 soy sauce / chicken essence, chicken powder / edible oil achieved revenue of 752 / 155 / 106 million yuan respectively, with a year-on-year revenue of – 1.13% / + 10.43% / – 21.79% respectively.
In terms of component price, in 2021, the total sales volume of condiments was 666900 tons (- 4.23%), the ton price was 6844 yuan / ton (- 3.32%), the sales volume of soy sauce / chicken powder / edible oil was 4781 / 3.01 / 34800 tons, with a year-on-year increase of -4.59% / + 11.39% / – 23.01%, and the ton price was 5912 / 18111 / 14094 yuan / ton, with a year-on-year increase of -5.13% / – 0.83% / + 5.55%.
By region, the revenue of the East / South / Midwest / North in 2021 was RMB 11.24/23.95/9.04/630 million, a year-on-year increase of + 1.93% / + 11.35% / – 12.94% / – 18.90%. In 2022q1, the revenue of the East / South / Midwest / North was RMB 276 / 497 / 258 / 185 million, a year-on-year increase of -7.93% / + 3.70% / + 8.55% / – 10.21%.
In terms of channels, the distribution / direct sales revenue was 4.439126 billion yuan respectively, with a year-on-year increase of – 7.55% / – 2.04%; Among them, online sales amounted to 71 million yuan (+ 28.44%). In 2022q1, the distribution / direct sales revenue was RMB 1.168 billion / 48 million respectively, with a year-on-year increase of – 2.53% / + 94.94%. In 2021, there was a net increase of 281 to 1702 dealers. By the end of Q1 in 2022, there were 1748 dealers, with a net increase of 46.
The strategic objectives are clear and the performance is expected to improve marginally
The company’s strategic objectives are divided into three stages: 1) focus on endogenous development, supplemented by epitaxial development, expand and emphasize flavor products, and realize the double hundred development plan; 2) Expand to the upstream and downstream of condiment industry chain and healthy food industry, and catch up with and surpass the industry leaders; 3) Timely expand overseas food business.
In terms of channel, the company will stabilize Ka, develop BC, boost the second batch, tackle key problems in catering and develop online healthily. Repurchasing shares for equity incentive is expected to improve business vitality. With the continuous improvement of the real estate stripping and the marginal performance of the non main real estate industry, it is expected to improve.
Profit forecast
We believe that with the easing of the epidemic in 2022, the consumption demand for condiments is expected to recover. The company continues to cultivate channels and focus on its main business. With the release of production capacity, its performance is expected to continue to improve in 2022. It is expected that the EPS will be 0.94/1.08/1.23 yuan from 2022 to 2024. The current share price corresponds to 29, 25 and 22 times of PE respectively. It is covered for the first time and given a “recommended” investment rating.
Risk tips
Macroeconomic downside risk, epidemic drag on consumption, intensified industrial competition, less than expected regional expansion, less than expected capacity construction or utilization, less than expected price increase, less than expected stripping of real estate and other businesses, less than expected expansion of industrial chain and overseas expansion, debt risk of controlling shareholders, etc.
