\u3000\u3 Ping An Bank Co.Ltd(000001) 215 Zhengzhou Qianweiyangchu Food Co.Ltd(001215) )
Event: the company released the annual report of 2021 and the report of the first quarter of 2022. In 2021, the company achieved a revenue of 1.274 billion yuan, a year-on-year increase of 34.9%; The net profit attributable to the parent company was 88 million yuan, a year-on-year increase of 15.5%. Among them, 21q4 achieved a revenue of 386 million yuan, a year-on-year increase of 14.9%; The net profit attributable to the parent company was 32 million yuan, a year-on-year increase of 14.6%. 22q1 company achieved a revenue of 348 million yuan, a year-on-year increase of 20.2%; The net profit attributable to the parent company was 29 million yuan, a year-on-year increase of 44.8%; The net profit deducted from non parent company was 24 million yuan, with a year-on-year increase of 24.2%.
Comments:
22q1 company’s revenue growth is in line with expectations. In the past 21 years, the company carried out business around building core large single products, and began to cultivate other large single products on the basis of maintaining the advantages of fried dough sticks. In the 21st year, the revenue of fried dough sticks product line was 351 million yuan, with a year-on-year increase of 34.7%. The increase of fried dough sticks product line except Yum was 43.9%, mainly due to the incremental sales brought by the large-scale sales of distribution channels. The product line of steamed and fried dumplings achieved a revenue of 135 million yuan, with a year-on-year increase of 167.87%, mainly because the company has strengthened the R & D and promotion of steamed and fried dumplings in the past 21 years. In the next 22 years, the company will strengthen the R & D, production and sales of prefabricated dishes and establish a professional prefabricated dish company to carry out relevant business. In terms of direct sales channels, the number of major customers of the company in 21 years was 168, with a year-on-year increase of 93.10%. In 21 years, yum China / Wallace / Haidilao contributed 245 million yuan / 71 million yuan / 62 million yuan respectively, with a year-on-year increase of 11.2% / 76.5% / 200.4% respectively. In terms of distribution channels, in the past 21 years, the company has focused on in-depth service for key customers and supported key dealers to become stronger and bigger. The annual sales of the company’s distribution model was 759 million yuan, with a year-on-year increase of 25.4%; Among them, the sales of the top 20 dealers accounted for 206 million, with a year-on-year increase of 50.1%. Although affected by the epidemic, the overall revenue of 22q1 company still maintained a strong growth.
22q1 net profit growth far exceeded revenue growth, mainly due to the increase in government subsidies. 22q1 gross profit margin was 22.6%, up 0.4 points year-on-year. Although the prices of raw materials such as flour and soybean oil have risen, the company has locked the price in advance, so it has little impact on the performance. 22q1 product structure optimization has a positive contribution to gross profit margin. 22q1 sales / management / R & D expense ratio was 3.2% / 8.7% / 0.8% respectively, with a year-on-year increase of 0.1 / 0.3 / 0.2 percentage points, and the expense investment increased slightly. 22q1 company received more than 5 million government subsidies, so the growth rate of net profit far exceeded the growth rate of revenue. 22q1 company’s net profit deducted from non parent company increased by 24.2% year-on-year, still faster than the revenue growth.
Profit forecast and investment rating: the company has an absolute advantage in the category of fried dough sticks, and the high cost performance of products has formed a barrier. Steamed and fried dumplings mainly focus on the cost performance strategy, with rapid revenue growth, which is expected to become the next big single product. The company is deeply engaged in catering channels and positioned as “the choice of chefs”, which will benefit from the industrialization bonus of catering kitchen in the future. We expect that the company’s EPS from 2022 to 2024 will be 1.26/1.60/2.19 yuan respectively, and the corresponding PE will be 37.65/29.7/21.70 times respectively, giving a “buy” rating.
Risk factors: the price rise of raw materials is higher than expected; The promotion of new products was less than expected.
