\u3000\u3 China Vanke Co.Ltd(000002) 991 Ganyuan Foods Co.Ltd(002991) )
Short term performance is under pressure, equity incentive is implemented, and the "overweight" rating is maintained
In 2021, the company realized a revenue of 1.29 billion yuan, a year-on-year increase of 10.4%, and the net profit attributable to the parent company was 154 million yuan, a year-on-year decrease of 14.3%. In 2022q1, the company realized a revenue of 320 million yuan, a year-on-year decrease of 5.2%, and the net profit attributable to the parent decreased by 45.3%. The company's short-term profit is under pressure and is expected to enjoy the dividend of cost reduction in 2023. We adjusted 20222023 and added the profit forecast for 2024. The net profit attributable to the parent company is expected to be 190 (- 0.1), 270 (+ 0.4) and 350 million yuan respectively, with a year-on-year increase of 23.5%, 42.7% and 28.3%. The current share price corresponds to 23.8, 16.7 and 13.0 times of PE. The company issued the employee stock ownership plan to anchor the future growth and maintain the "overweight" rating.
Revenue grew steadily, and raw materials dragged down profit performance
The company's revenue in the single quarter of 2021q4 increased by 15.8%, mainly due to the completion of the price increase, the adjustment of the channel structure, the gradual recovery of the flow of business supermarkets, the early spring festival in 2022 and the inclusion of the peak sales season. In 2021q4, the gross profit margin decreased by 2.8pct, mainly due to the rise of raw materials such as palm oil packaging materials. The sales expense ratio of 2021q4 company decreased by 4.8pct, mainly due to the reduction of advertising expenses, the remaining expenses remained stable, and the overall net profit margin of 2021q4 company increased by 2.8pct. The company's 2022q1 revenue fell by 5.2%, mainly due to the high base effect caused by peak staggering in the peak season before the festival. In 2022q1, the gross profit margin decreased by 4.4pct, mainly due to the obvious rise in the price of raw material palm oil and the impact of more expenditure on new factories in Henan. The company's 2022q1 sales expense rate decreased by 3.3pct, mainly due to the reduction of advertising expenses; The rate of administrative expenses increased by 1.9pct, mainly due to the increase of depreciation expenses and personnel wages. In addition, the increase of R & D expenses and the return of land disposal subsidies also dragged down profits.
The implementation of employee stock ownership plan, looking forward to the future, has broad prospects
The company issued the employee stock ownership plan, and the performance assessment target is based on the income and net profit in 2021. The income and profit will increase by 20%, 30% and 30% respectively from 2022 to 2024. Equity incentive is conducive to binding the interests of core employees, promoting the sustainable and stable development of the company's performance, and highlighting the company's confidence in the future development prospects. The company's new products are released smoothly, the flavor nuts are upgraded in terms of packaging specifications and flavors, bound with emerging channels, and the management is more refined. In 2021, due to the disturbance of the external environment, the company cultivated internal skills, arranged product price increases, organized personnel changes, and developed product innovation. We expect the company's revenue to accelerate growth under the new product distribution and low base effect.
Risk tip: repeated impact of epidemic situation, food safety risk and price rise risk of raw materials.
