\u3000\u3 Shengda Resources Co.Ltd(000603) 288 Foshan Haitian Flavouring And Food Company Ltd(603288) )
Event: the company released the first quarterly report of 2022. During the reporting period, the company achieved an operating revenue of 7.210 billion yuan, a year-on-year increase of 0.72%; The net profit attributable to the parent company was 1.829 billion yuan, a year-on-year increase of – 6.36%%; Deduct non net profit of RMB 1.791 billion, a year-on-year increase of – 5.49%.
Under the disturbance of the epidemic, Q1 performance is under pressure. By category, the revenue of soy sauce / seasoning sauce / oyster sauce was 40.76/8.07/11.31 respectively, with a year-on-year increase of – 0.53% / – 8.61% / – 3.71% respectively. Under the high base in the same period of last year and the disturbance of the epidemic in March, the sales of soy sauce and oyster sauce as essential consumer goods were relatively stable; The revenue of other products was 768 million yuan, a year-on-year increase of + 9.70%, providing strong support for the company to achieve its annual revenue target. In terms of sub regions, the company achieved revenue of RMB 1.377/12.13/14.82/18.86/825 billion respectively in the Eastern / Southern / central / northern / western regions, with a year-on-year increase of + 5.61% / + 6.02% / – 9.27% / + 0.37% / – 7.25% respectively; In terms of channels, the company’s offline dealers decreased by 291, realizing a revenue of 6.49 billion yuan, a year-on-year increase of – 3.90%; Online channels achieved a revenue of 293 million yuan, a year-on-year increase of + 202.23%, and the company’s new retail channel construction results showed.
Costs rose, profits were under pressure, and cost reduction and fee control were actively responded to. The gross profit margin of 22q1 company was 38.17%, with a year-on-year increase of -2.77pct, mainly due to the continuous upward cost pressure. Among them, the price of soybean increased due to the conflict between Russia and Ukraine, and the price of pet also increased. In terms of expenses, the sales expense rate / management expense rate / financial expense rate of 22q1 company were 5.43% / 1.35% / – 1.45% respectively, with a year-on-year increase of -0.27 / + 0.20 / + 0.13pct respectively; Among them, the decrease in sales expense rate is mainly due to the company’s innovative marketing model to improve publicity efficiency, reduce advertising expenses, and partially alleviate the pressure on gross profit margin. The net interest rate of 21q1 company was 25.37%, with a year-on-year increase of -1.92pct.
The leading advantages of the company remain unchanged and the consumption is expected to recover gradually. The company’s revenue and net profit in 2022 are planned to be + 12%. Although the consumption was relatively weak due to the epidemic in the first quarter, the company still achieved 25.74% / 24.50% of the annual revenue / net profit target; We believe that in the medium and long term, the company’s leading advantages have not changed. From the channel side, the company’s advantages in traditional channels are constantly consolidated, and the layout of new channels is also accelerating development; On the product side, the company’s three core categories of soy sauce, oyster sauce and seasoning sauce have a large market share and strong rigid demand. It is worth looking forward to the recovery of sales after the epidemic control. New products such as compound seasoning, chicken essence and vinegar will also develop rapidly with the help of the company’s platform advantages, providing new growth momentum and vitality. In the medium and long term, we are optimistic about the company’s use of platform advantages to speed up the cultivation of new products and maintain and expand the company’s competitiveness and leading advantage.
Investment suggestion: we look forward to the opportunities brought by the improvement of catering after the accurate prevention and control of the epidemic. At the same time, with the superposition of the previous price increase contribution, the company is expected to gradually improve month on month during the quarter. We predict that the operating revenue of the company from 2022 to 2024 will be RMB 28.094/32.405/37.181 billion respectively, with a year-on-year increase of 12.4% / 15.3% / 14.7%. The net profit attributable to the parent company was 7.481/89.10/10.523 billion yuan, with a year-on-year increase of 12.1% / 19.1% / 18.1%. The corresponding EPS is 1.78/2.12/2.50 yuan respectively, maintaining the company’s “buy-b” rating.
Risk tips: repeated epidemics, intensified industry competition, less than expected promotion of new products, higher than expected price rise of raw materials, etc.
