\u3000\u3 Shengda Resources Co.Ltd(000603) 517 Juewei Food Co.Ltd(603517) )
Event: on April 27, the company released its 2021 annual report and the first quarterly report of 2022. 21. In the whole year / 21q4 / 22q1, the revenue was 6.549/1.702/1.688 billion yuan, a year-on-year increase of + 24.12% / + 22.39% / + 12.09%; The net profit attributable to the parent company was 981 / 17 / 89 million yuan, a year-on-year increase of + 39.86% / - 90.71% / - 62.24%.
Revenue grew steadily in the 21st year, and 21q4 subsidized dealers to suppress profit performance. In the past 21 years, although the epidemic had a certain negative impact on sales, as the company continued to cultivate the main business of duck neck; Food ecology has begun to take effect, and the company's main business income has achieved steady growth. On the profit side, after deducting the one-time investment income caused by the transfer of part of the equity of Jiangsu Hefu and Zhengzhou Qianweiyangchu Food Co.Ltd(001215) transferred into other equity instruments, the net profit deducted by the company from non parent company was 719 million yuan, a year-on-year increase of + 5.87%, which was due to the low growth rate of non profit deduction, which was due to the increase in sales expenses caused by the company's Q4 subsidy to franchisees. In terms of products, the company's fresh goods business achieved a revenue of 5.607 billion yuan in 21 years, a year-on-year increase of + 15.47%, of which poultry / livestock / vegetables / other products achieved a revenue of 43.31/0.70/6.13/593 million yuan, a year-on-year increase of + 13.00% / + 115.15% / + 15.68% / + 28.73%. The growth rate of income from livestock and other core products remained relatively stable year-on-year, but the growth rate of income from other core products remained relatively high. 22q1 fresh goods business income was 1.398 billion yuan, a year-on-year increase of + 2.75%; The revenue of each sub item was 1.098/0.09/1.53/138 billion yuan respectively, with a year-on-year increase of + 4.20% / - 62.85% / + 4.73% / + 1.45%. The spot business of 22q1 was greatly affected by the negative impact of the epidemic, and the dynamic sales of stores were not smooth. Poultry, vegetables and other products grew at a low speed, and the income of livestock decreased significantly. At the end of the 21st century, the company had 13714 stores in mainland China, with a net increase of 1315 in the whole year, a year-on-year increase of + 10.16%. In 22 years, the company will continue to promote channel sinking, and the number of stores is expected to continue to grow steadily.
The change of income structure slightly reduced the gross profit margin in 21 years, and channel subsidies pushed up the sales expense rate. The gross profit margin of the company in 21 years was 31.68%, year-on-year -1.80ppt (21q4 / 22q1 was 26.34% / 30.31%, year-on-year -1.32ppt / - 4.18ppt). The reason for the decrease of gross profit margin in 21 years is the change of sales structure and the slight increase of raw material cost; The reason for the decline of gross profit margin in 22q1 is that the epidemic has led to poor dynamic sales and changes in income structure. The sales expense rate in 21 years was 8.00%, with a year-on-year increase of + 1.90ppt (21q4 / 22q1 was 11.12% / 14.00%, with a year-on-year increase of + 13.54ppt / + 7.33ppt), which was due to the increase of market expenses and employee compensation. The rate of administrative expenses was 6.38%, with a year-on-year increase of + 0.09ppt (21q4 / 22q1 was 7.22% / 6.96%, with a year-on-year increase of + 0.29ppt / + 1.02ppt), which was due to the increase of share based payment expenses and employee compensation. The R & D expense rate was 0.57%, year-on-year + 0.36ppt (21q4 / 22q1 was 1.53% / 0.45%, year-on-year + 1.39ppt / + 0.22ppt). The financial expense ratio was 0.13%, year-on-year + 0.29ppt (21q4 / 22q1 was 0.46% / 0.17%, year-on-year + 0.40ppt / + 0.23ppt), which was due to the impact of the new lease standard "unrecognized expenses".
Investment suggestion: according to the operation of 22q1, we slightly reduce the profit forecast. It is estimated that the company will realize a revenue of RMB 7.736/93.23/11.126 billion and a net profit attributable to the parent company of RMB 1.021/12.82/1.538 billion in 22-24 years, equivalent to EPS of RMB 1.66/2.09/2.50 respectively. The company is a leading leisure flavor enterprise with perfect channel coverage, capacity still has room for improvement, and has good medium and long-term growth. Maintain a "recommended" rating.
Risk tip: business expansion is slower than expected, consumers' willingness to consume is declining, food safety problems, etc.
