\u3000\u3 Ping An Bank Co.Ltd(000001) 215 Zhengzhou Qianweiyangchu Food Co.Ltd(001215) )
Zhengzhou Qianweiyangchu Food Co.Ltd(001215) 2021 annual report and the first quarterly report of 2022: in 2021, the company achieved a revenue of 1.274 billion yuan, a year-on-year increase of + 34.89%, a net profit attributable to the parent company of 88 million yuan, a year-on-year increase of + 15.51%, a deduction of non attributable net profit of 86 million yuan, a year-on-year increase of + 47.14%, and a dividend of 1.50 yuan per 10 shares. In the first quarter of 2022, the company achieved a revenue of 348 million yuan, a year-on-year increase of + 20.17%, a net profit attributable to the parent company of 29 million yuan, a year-on-year increase of + 44.78%, and a deduction of non attributable net profit of 24 million yuan, a year-on-year increase of + 24.16%.
The revenue has been steadily increased, and the product pattern of “one super and many strong” has developed steadily. In 2021, the company achieved a revenue of 1.274 billion yuan, a year-on-year increase of + 34.89%, equivalent to 386 million yuan in 21q4, a year-on-year increase of + 14.90%. The relative slowdown of Q4 growth rate was mainly affected by the high base of 20q4. 22q1 company achieved a revenue of 348 million yuan, a year-on-year increase of + 20.17%. It still achieved an increase of more than 20% under the disturbance of the epidemic, which verified the excellent growth attribute of the company. In 2021, big B achieved a revenue scale of 511 million yuan, a year-on-year increase of + 51.62%, of which Yum China achieved a revenue of 245 million yuan, a year-on-year increase of + 11.15%, mainly due to the accelerated expansion process of Yum’s own stores and the introduction of more new products for yum. In addition to yum, other big B customers achieved a revenue of 265 million yuan, a year-on-year increase of + 128.54%. The revenue of other big B customers increased rapidly. On the one hand, due to the expansion of their own stores and scale and the introduction of new products, on the other hand, due to the company’s inclusion of some catering supply chain customers with sufficient growth potential into the big customer management system, the number of big customers of the company reached 168 at the end of 2021, with a net increase of 81. In 2021, small B customers achieved a revenue scale of 759 million yuan, a year-on-year increase of + 25.35%. By the end of 2021, the company had 968 dealers, with a net increase of 61. Excluding the influence of the change of customer division mode, the actual growth rate of large B and small B customers is basically the same. The company also strengthened the construction of distribution channels in 2021 to empower the head dealers. From the perspective of products, the revenue of the four categories of fried / baked / Steamed / cooked dishes reached RMB 660 million / 2.23/2.56/130 million respectively, with a year-on-year increase of + 26.66% / + 19.10% / + 39.20% / + 162.11% respectively. The rapid growth of the dishes category was mainly due to the large volume of steamed and fried dumplings, reaching a revenue of RMB 135 million in 2021, with a year-on-year increase of + 167.87%; Cooking reached 39.20% growth rate, mainly due to certain increment brought by cartoon pastry; Fried dough sticks are still the company’s core products. In 2021, the revenue of fried dough sticks product line reached 351 million yuan, a year-on-year increase of + 34.65%, and the revenue of fried dough sticks except Yum was + 43.88%.
The gross profit margin of raw material price locking guarantee is relatively stable, and government subsidies disturb the fluctuation of net interest rate. In 2021, the company realized a net profit attributable to the parent company of 88 million yuan, a year-on-year increase of + 15.51%, deducting a net profit not attributable to the parent company of 86 million yuan, a year-on-year increase of + 47.14%. The difference was mainly due to a decrease of 23.57 million yuan in government subsidies in 21 years. In 2022q1, the net profit attributable to the parent company was 29 million yuan, a year-on-year increase of 44.78%, and the net profit not attributable to the parent company was 24 million yuan, a year-on-year increase of 24.16%. The difference was mainly due to the government’s 6 million listing subsidy received in 22q1.
Gross profit margin: in 2021, the company’s gross profit margin was 22.36%, year-on-year + 0.65pct, and 22q1’s gross profit margin was 22.56%, year-on-year + 0.41pct. The increase in gross profit margin mainly came from the upgrading of product structure, and the company locked the price of upstream raw materials for major B customers from the end of March to the end of May this year, which has not been affected by the rise in raw material prices. In 2021, the gross profit margin of fried / baked / cooked / cooked products will be 20.72% / 24.95% / 23.45% / 21.59% respectively. It is expected that the volume of baked products will also increase the overall gross profit margin. Period expense ratio: in 2021, the company’s period expense ratio was 12.84%, with a year-on-year increase of + 0.05pct, of which the sales / management / R & D / financial expense ratio was 3.33% / 8.43% / 0.71% / 0.38% respectively, with a year-on-year increase of + 0.05 / + 0.04 / – 0.06 / + 0.02pct respectively. All expenses were properly controlled. 21q4 accrued 906200 yuan of share based payment expenses, and 21q4 management expense ratio was + 1.51pct; The expense rate during 22q1 was 12.66%, with a year-on-year increase of + 0.16pct. Net interest rate: in 2021, the company’s net interest rate was 6.85%, year-on-year -1.26pct; The net interest rate of 22q1 was 8.10%, with a year-on-year increase of + 1.35pct. The fluctuation of the net interest rate was mainly due to the receipt of 25.76 million yuan of government subsidies in 2020, with a high base. 22q1 received 6 million yuan of government subsidies.
Deeply cultivate the catering supply chain and achieve fruitful customer development. The company has been deeply engaged in b-end catering for many years, has a deep understanding of the catering supply chain, and continues to develop products more suitable for the kitchen processing scene, so as to effectively solve the pain points of catering processing. Benefiting from the improvement of catering chain rate and the cost reduction and efficiency increase of the industry, there is sufficient growth potential in the future. For big B customers, the company continues to introduce new products, expand the product matrix, develop catering customers with growth potential and provide professional solutions. For small B customers, the company actively empowers head dealers and gives support from key customer building, conference marketing and other aspects. At the product level, the company will continue to maintain the first stable advantage in the fried dough sticks market, and simultaneously expand large single products such as steamed and fried dumplings, so as to achieve a pattern of one super multi strong products.
Investment suggestion: it is estimated that the company will realize an operating revenue of RMB 1.603/19.95/2.440 billion from 2022 to 2024, a year-on-year increase of + 25.8% / + 24.5% / + 22.3%; The net profit attributable to the parent company was 109 / 137 / 169 million yuan, a year-on-year increase of + 23.3% / + 25.4% / + 23.5%, EPS was 1.26/1.58/1.95 yuan respectively, and the corresponding PE was 37 / 30 / 24x. Considering that the company has the first mover advantage in the quick-frozen catering supply chain, it will fully benefit from the catering chain and the industry cost reduction and efficiency increase, and maintain the “recommended” rating.
Risk tip: the epidemic situation is repeated, the competition in the b-end market intensifies, and the price of raw materials rises sharply.
