\u3000\u3 Shengda Resources Co.Ltd(000603) 288 Foshan Haitian Flavouring And Food Company Ltd(603288) )
Key investment points:
Event: the company released the performance report for the first quarter of 2022. In the first quarter of 2022, 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 decrease of 6.36%.
Comments:
Due to multi factor disturbance, the company’s 2022q1 performance is under pressure. Judging from the current favorable price situation, the favorable price of the company’s products has been basically completed. However, due to the high cost, the incomplete recovery of terminal consumption under the influence of the epidemic and the high base in the same period, the company’s 2022q1 performance is under pressure. In the first quarter of 2022, 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 decrease of 6.36%.
The performance of the company’s core products decreased by varying degrees in 2022q1. In terms of products, the company speeds up the development of new products on the basis of consolidating the original categories. At present, soy sauce, oyster sauce and seasoning sauce are the three core products of the company. Affected by the epidemic disturbance and other factors, the revenue of 2022q1 has decreased by varying degrees, of which the seasoning sauce business has the largest decline. According to the specific data, the company’s 2022q1 soy sauce achieved a revenue of 4.076 billion yuan, a year-on-year decrease of 0.53%; Oyster sauce achieved a revenue of 1.131 billion yuan, a year-on-year decrease of 3.17%; Seasoning sauce achieved a revenue of 807 million yuan, a year-on-year decrease of 8.61%.
The development of online channels is strong, and the regional performance is differentiated. By channel, the company continues to accelerate the development of online business on the basis of strengthening the advantages of offline channels. In the context of the epidemic affecting offline consumption scenarios, the company’s online business showed a good development momentum in the first quarter of 2022. In 2022q1, the company’s offline channels realized an operating revenue of 6.490 billion yuan, a year-on-year decrease of 3.90%; Online channels achieved an operating revenue of 293 million yuan, a year-on-year increase of 202.23%. In terms of subregions, the performance of the company in different regions is differentiated. At present, the northern and central regions are the main business areas of the company, and the revenue in 2022q1 increased by 0.37% and decreased by 9.27% year-on-year respectively. In addition, the company’s revenue in 2022q1 in the western, Eastern and southern regions decreased by 7.25%, increased by 5.61% and increased by 6.02% respectively year-on-year.
The company’s profitability declined in 2022q1. Since 2022, affected by the drought in South America and other factors, the prices of raw materials such as soybean and soybean meal have further increased, and the company is facing greater cost pressure. Considering that the company’s price increase can partially offset the impact of rising costs, the company’s gross profit margin in 2022q1 was 38.17%, down 2.77 and 0.04 percentage points year-on-year and month on month respectively. From the expense side, the sales expense rate of 2022q1 company was 5.43%, a year-on-year decrease of 0.27 percentage points; The rate of administrative expenses was 3.91%, a year-on-year decrease of 0.16 percentage points; The financial expense rate was – 1.45%, with a year-on-year increase of 0.13 percentage points. Based on the combination of gross profit rate and expense rate, the company achieved a net profit rate of 25.39% in 2022q1, a year-on-year decrease of 1.93 percentage points and a month on month decrease of 2.60 percentage points, with a decline in profitability.
Maintain recommended ratings. It is estimated that the company’s EPS from 2022 to 2023 will be 1.76 yuan and 2.01 yuan respectively, and the corresponding PE will be 52 times and 45 times respectively. The company plans to achieve an operating revenue of 28 billion yuan in 2022, with a year-on-year increase of about 12%; The net profit attributable to the parent company was 7.47 billion yuan, a year-on-year increase of about 12%. The capacity of the company’s new production base is expected to be gradually released in 2022. At present, the disturbing factors of the company’s performance still exist. In the follow-up, we will continue to pay attention to factors such as terminal demand and upstream cost price, and grasp the marginal inflection point. Maintain the “recommended” rating of the company.
Risk warning. Raw material price fluctuation risk, product price increase is less than expected, channel development is less than expected, and food safety risk.
