\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 887 Inner Mongolia Yili Industrial Group Co.Ltd(600887) )
Event: the company released the annual report of 2021 and the report of the first quarter of 2022. According to the announcement, the company achieved a total operating revenue of 110595 billion yuan in 2021, a year-on-year increase of 14.15%; The net profit attributable to the parent company was 8.705 billion yuan, a year-on-year increase of 22.98%. In the first quarter of 2022, the total operating revenue was 31.047 billion yuan, a year-on-year increase of 13.47%; The net profit attributable to the parent company was 3.519 billion yuan, a year-on-year increase of 24.32%.
Comments:
The company’s revenue grew steadily in 2021, breaking the 100 billion mark for the first time. The total operating income of the company was 110.95 billion yuan in 2021, a year-on-year increase of 1.51%; The net profit attributable to the parent company was 8.705 billion yuan, a year-on-year increase of 22.98%. In a single quarter, 2021q4 achieved a total operating revenue of 25.588 billion yuan, a year-on-year increase of 10.70%; The net profit attributable to the parent company was 761 million yuan, a year-on-year decrease of 27.82%. As a sponsor of the Winter Olympics, the company’s 2021q4 advertising and marketing expenses have increased significantly year-on-year, and the superimposed cost is at a relatively high level. The company’s 2021q4 profit side is under pressure.
The company made a good start as scheduled in 2022, and the demand for dairy products continued to rise. Under the influence of repeated epidemics, residents’ health awareness has gradually improved, and the demand for dairy products continues to rise. In the first quarter of 2022, the terminal dynamic sales of the company’s products performed well, and the inventory of core products was at a benign level, achieving a good start as scheduled. In the first quarter of 2022, the total operating revenue was 31.047 billion yuan, a year-on-year increase of 13.47%; The net profit attributable to the parent company was 3.519 billion yuan, a year-on-year increase of 24.32%. Considering the consolidation of Aoyou, the company plans to achieve a total operating revenue of 129.6 billion yuan in 2022, with a year-on-year increase of 17.2%; The total profit was 12.2 billion yuan, a year-on-year increase of 20.7%.
All businesses of the company achieved sound growth, and the growth rate of milk powder and cold drinks was rapid. By category, the company achieved benign growth in liquid milk, milk powder and dairy products, cold drink products and other products in 2021 and 2022q1, of which milk powder and cold drink grew rapidly. At present, the company’s jinlingguan infant formula is the first to complete the formula upgrading, and has become the first batch of infant formula in China that meets the new national standard of milk powder. In terms of cold drink business, Qixuan, Zhenxi and xujihuan, the high-end brands of qiaolez, have achieved rapid growth. According to the specific data, in 2021, the company’s liquid milk, milk powder and dairy products, cold drink products and other products achieved operating revenue of 84.911 billion yuan, 16.209 billion yuan, 7.161 billion yuan and 182 million yuan respectively, with a year-on-year increase of 11.54%, 25.80%, 16.28% and 1.86% respectively; 2022q1’s liquid milk, milk powder and dairy products, cold drink products and other products achieved operating revenue of 22.318 billion yuan, 5.395 billion yuan, 2.795 billion yuan and 81 million yuan respectively, with a year-on-year increase of 6.98%, 35.25%, 35.55% and 268.18% respectively.
The net interest rate of the company in 2022q1 reached a new high in recent years. The accounting policies of the company changed in 2021, and part of the sales and management expenses were adjusted and included in the operating cost. With the year-on-year increase in the proportion of sales revenue of key products such as Jindian, amuxi and jinlingguan, the company’s product structure was further optimized, superimposed with the improvement of cost structure after the Winter Olympic Games and the slowing pressure of cost rise, the company’s 2022q1 net interest rate hit a new high in recent years. In 2022q1, the gross profit margin of the company was 34.44%, a year-on-year decrease of 3.27%; The sales expense rate, management expense rate and financial expense rate were 18.14%, 3.69% and – 0.36% respectively, with a year-on-year decrease of 3.41%, 0.99% and 0.27% respectively. Based on the combination of gross profit margin and expense rate, the net profit margin of 2022q1 was 11.35%, with a year-on-year increase of 0.98%, a new high in recent years.
Maintain recommended ratings. It is estimated that the company’s EPS from 2022 to 2023 will be 1.63 yuan and 2.00 yuan respectively, and the corresponding PE will be 24 times and 20 times respectively. As a leading enterprise in China’s dairy industry, in October 2020, the chairman of the company put forward the medium-term goal of entering the “top three global dairy industries” in 2025 and the long-term goal of realizing the “first global dairy industry” in 2030. Under the catalysis of multiple factors such as the slowdown of upstream cost rising pressure, the maintenance of demand and the optimization and upgrading of product structure, the company’s performance is expected to have further upward space and high-quality development can be expected. Maintain the “recommended” rating of the company.
Risk warning. Raw material price fluctuation risk, product promotion is less than expected, industry competition intensifies, and food safety risk.
