\u3000\u3 Shengda Resources Co.Ltd(000603) 288 Foshan Haitian Flavouring And Food Company Ltd(603288) )
Event: the company released the first quarter report of 2022, and 22q1 achieved a revenue of 7.21 billion yuan, a year-on-year increase of 0.7%; The net profit attributable to the parent company was 1.829 billion yuan, a year-on-year decrease of 6.4%; The net profit deducted from non parent company was 1.791 billion yuan, a year-on-year decrease of 5.5%. 22q1 company achieved a gross profit margin of 38.2%, a year-on-year decrease of 2.8 percentage points; The net interest rate attributable to the parent company was 25.4%, a year-on-year decrease of 1.9 percentage points; The net interest rate after deduction of non parent company was 24.8%, down 1.6 percentage points year-on-year.
Comments:
Under the high base, the revenue of 22q1 maintained a slight increase. 22q1 revenue increased by 0.7% year-on-year, mainly due to the poor sales performance of catering channels under the influence of the epidemic. In terms of products, 22q1 soy sauce / sauce / oyster sauce / others increased by – 0.5% / – 8.6% / – 3.2% / 9.7% respectively. The performance of soy sauce and oyster sauce was relatively strong, the growth of sauce category was relatively weak, and the development of other categories was better. By channel, the revenue growth of 22q1 online and offline channels was 202.2% / – 3.9% respectively. The high growth of online channels was mainly due to the company’s active layout and development of new retail channels. 22q1 Eastern / Southern / central / northern / western regions increased by 5.6% / 6.0% / – 9.3% / 0.4% – 7.3% respectively. The central and western regions were more dragged down. We expect that due to the impact of the epidemic, the number of people returning home during the Spring Festival will decrease. By the end of 2021, the number of dealers of the company had reached 7139, with a year-on-year decrease of 196.
The profit end of 22q1 was lower than expected. 22q1 gross profit margin was 38.2%, down 2.8 percentage points year-on-year, mainly due to the rise in raw material costs. The company actively responded to the cost side pressure by raising prices, and the gross profit margin has improved slightly month on month. 22q1 gross sales difference was 32.7%, down 2.5 percentage points year-on-year. 22q1 sales / management / R & D expense rates were 5.1% / 1.6% / 3.0% respectively, with a year-on-year increase of – 0.3 / + 0.2 / – 0.4% respectively. The expense rate decreased during the period. The number of managers increased and the rate of administrative expenses increased slightly. The net interest rate was 25.4%, down 1.9 percentage points year-on-year.
Profit forecast and investment rating: in the short term, the company suffers from the repeated impact of the epidemic and the impact of the rise in the price of raw materials, resulting in poor performance. We believe that Haitian has the advantages of scale, sticky products, high consumer loyalty and obvious competitive advantage. We expect that the company’s EPS in 22-24 years will be 1.62/1.91/2.18 yuan respectively, and the corresponding PE will be 50.67/42.83/37.63 times respectively, maintaining the “buy” rating.
Risk factors: the price rise of raw materials is higher than expected; Industry competition intensifies; The epidemic situation is repeated.
