\u3000\u3 Ping An Bank Co.Ltd(000001) 215 Zhengzhou Qianweiyangchu Food Co.Ltd(001215) )
Event: the company released 21 and 22q1 financial reports, and achieved a revenue of 1.274 billion yuan in 21 years, a year-on-year increase of + 34.89%; The net profit attributable to the parent company was 88 million yuan, a year-on-year increase of + 15.51%. 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 + 14.63%. 22q1 company achieved a revenue of 348 million yuan, a year-on-year increase of + 20.17%; The net profit attributable to the parent company was 29 million yuan, a year-on-year increase of 44.78%, and the net profit deducted from non attributable to the parent company was 24 million yuan, a year-on-year increase of 24.16%.
The growth rate of small channel B is bright, and the logic of large single products continues to be serious. In 2021, Q1-Q4 company achieved revenue of RMB 290 / 2.78/3.2/386 million, H1 / Q3 / Q4 + 54.8% / 32.42% / 14.90% year-on-year. Due to the low base affected by the epidemic in 20 years and the smooth expansion of the company’s customers, the revenue achieved steady growth throughout the year. Due to the high growth of Q4 in the same period of last year, the growth rate decreased slightly. 22q1 company achieved a revenue of 348 million yuan, a year-on-year increase of + 20.17%. Due to the repeated impact of the epidemic, we expect the large B channel of the company to be affected to some extent, but the small B channel has a rapid growth rate, which is in line with the expected growth as a whole.
In terms of sub channels, in 2021, the company’s direct sales / distribution sales were 510 / 760 million yuan, a year-on-year increase of + 51.62% / 25.35%. From the perspective of direct sales, the number of major customers of the company increased from 81 to 168 at the end of 21. Among them, KFC / Wallace / Haidilao increased by 11% / 77% / 200% year-on-year. In terms of distribution, in the past 21 years, the company has strengthened the construction of dealers, the number of dealers has increased from 61 to 968, and the number of sales and marketing personnel is 213, an increase of 21.7% year-on-year. In the 21st year, the effect of the company’s increasing support for core dealers initially appeared. In 2021, the sales of the top 20 dealers accounted for 206 million, with a year-on-year increase of + 50.14%, much higher than the overall growth rate of distribution channels. In terms of products, in 2021, the revenue of fried / baked / boiled / cooked dishes and others reached RMB 66 million / 223 / 256 / 130 million respectively, with a year-on-year increase of + 26.66% / 19.10% / 39.20% / 162.11%. Among them, the revenue of fried dough sticks / steamed and fried dumplings / pastry products reached RMB 350 million / 140 / 120 million respectively, with a year-on-year increase of + 34.65% / 167.87% / 29.98%. In addition, prefabricated dishes have been the focus of the company for 21 years, with sales of more than 14 million, a year-on-year increase of 34.35%.
Strong cost control ability and stable profitability. In 2021q1-q4, the company realized a net profit attributable to the parent company of RMB 0.2/0.17/0.2/0.32 billion, with a year-on-year increase of + 50.51% / – 18.05% / + 14.63% in H1 / Q3 / Q4. Q3 due to higher government subsidies in the same period of 20 years, the profit growth rate declined, but the deduction of non profits still maintained a high growth rate. 22q1 company realized a net profit attributable to parent company of 29 million yuan, with a year-on-year increase of 44.78%, and deducted a net profit not attributable to parent company of 24 million yuan, with a year-on-year increase of 24.16%. The price of large b-end of the company’s cost side has been locked, and the small b-end has not been affected by the price fluctuation of Q1 raw materials. The subsequent cost of small b-end is expected to be hedged through product structure adjustment and internal efficiency improvement of the company, so as to maintain stable profitability. In the past 21 years, the company achieved a gross profit margin of 22.36%, a year-on-year increase of 0.65 PCT, a sales / management / R & D expense rate of 3.33% / 8.43% / 0.71%, a year-on-year increase of + 0.08 / + 0.04 / – 0.05 PCT, a net profit margin of 6.85%, a year-on-year decrease of -1.26 PCT, a non net profit margin of 6.72%, a year-on-year increase of + 0.56 PCT, and its profitability was improved. In 22q1, the company achieved a gross profit margin of 22.56%, a year-on-year increase of 0.41pct, a sales / management / R & D expense rate of 3.20% / 8.75% / 0.77%, a year-on-year increase of + 0.08 / + 0.31 / + 0.17pct, a net profit margin of 8.10%, a year-on-year increase of 1.35pct, a deduction of non net profit margin of 6.85%, a year-on-year increase of + 0.2pct, and the profit level is expected to remain stable.
Strong short-term performance support, stability and growth. The first quarterly report of the company was stable. Although big B was affected to some extent, the growth rate of small B channel was bright, the support strategy of large dealers achieved remarkable results, and hedged the impact of the epidemic on big B, showing a double determination of revenue and profit as a whole. With the gradual relief of the epidemic situation, the company, as a post epidemic industrial chain, is expected to take the lead in the recovery of downstream big B catering, with great flexibility. In the long run, we believe that the company has both stability and growth. The growth trend of the upstream volume of the catering industry chain remains unchanged. The stock customers build the stability of the company’s performance, and the incremental customers open the ceiling of big B business; Small B channel has a fast growth rate and strong competitiveness, and the newly cultivated large single products perform well, and the expansion logic continues to be verified. From the perspective of profit margin, the cost plus of large B and the price increase of small B are conducted smoothly. This year, the large volume of large single products has brought scale effect, the hedging cost has increased, and the profitability is relatively stable.
Profit forecast: according to the adjustment of the company’s profit forecast according to the first quarterly report, the company is expected to achieve a revenue of 1.594/19.95/2.5 billion yuan in 22-24 years, with a year-on-year increase of 25.11% / 25.19% / 25.28% (the value before 22-23 is 25.06% / 25.13%), and a net profit of 109 / 140 / 192 million yuan, with a year-on-year increase of 23.07% / 28.48% / 37.03% (the value before 22-23 is 18.13% / 34.70%), (after deducting the incentive expenses, it is expected to achieve RMB 125 / 156 / 198 million, with a year-on-year increase of 41.56% / 24.47% / 27.17%, corresponding to PE 33 / 26 / 21). EPS is RMB 1.26/1.61/2.21 respectively, maintaining the “buy” rating of the company.
Risk tips: food safety and quality risks; Business risk caused by “covid-19 epidemic”: risk of rising raw material prices
