\u3000\u3 China Vanke Co.Ltd(000002) 695 Jiangxi Huangshanghuang Group Food Co.Ltd(002695) )
Event: on April 28, the company released the 2021 annual report and the first quarterly report of 2022. 21. In the whole year / 21q4 / 22q1, the revenue was 2.339/4.05/542 billion yuan, a year-on-year increase of -4.01% / – 19.25% / – 10.62%; The net profit attributable to the parent company was 145 / – 39 / 37 million yuan, a year-on-year increase of – 48.76% / – 179.64% / – 45.57%.
In the 21st year, the income was obviously impacted by the epidemic, and various expenses could not be effectively diluted, which dragged down the profit performance. In the past 21 years, China’s consumer demand remained sluggish, and the single store income of terminal stores recovered slightly in 21q1; Since then, due to the repeated epidemic situation and the decline of human flow (which has a great impact on high potential energy stores), the income of single stores from 21q2 to 21q4 has declined again; At the same time, the management and control measures of local personnel flow have gradually slowed down the expansion speed of stores, and the above factors have led to a year-on-year decline in revenue. On the profit side, affected by the decline of income, the operating expenses of the company cannot be diluted effectively, making the decline of net profit greater than that of income.
In terms of products, the company’s fresh products / rice products business achieved revenue of RMB 1.705 billion and RMB 414 million respectively in 21 years, with a year-on-year increase of – 7.17% / – 4.64% respectively. 21h2 achieved revenue of 758 / 42 million yuan respectively, with a year-on-year increase of – 15.21% / – 49.26%. In the past 21 years, the revenue of the company’s main products declined year-on-year, of which 21h2 declined significantly.
In terms of volume and price, the company sold 36700 / 33800 tons of fresh products / rice products respectively in 21 years, with a year-on-year increase of – 8.44% / + 4.73% respectively; The average sales price was 4.6512200 yuan / ton, with a year-on-year increase of + 11.27% / – 8.94% respectively. The sales volume of spot products decreased significantly, but the selling price increased, because the price of some products was raised due to cost pressure in the middle of the year; The sales volume of rice products increased year-on-year, and the selling price decreased year-on-year. In 2022, the company plans to open 1059 new stores, increasing the number of 4218 stores by 25.11% compared with the end of 21. The expansion of stores is more radical.
Affected by factors such as poor dynamic sales, the gross profit margin decreased year-on-year, and the expenses increased slightly during the period. The gross profit margin of the company in 21 years was 33.00%, with a year-on-year increase of -4.80ppt (29.04% / 31.97% in 21q4 / 22q1, with a year-on-year increase of -15.79ppt / – 7.69ppt). The gross profit margin of fresh products / rice products was 35.48% / 22.57%, with a year-on-year increase of -4.29ppt / – 5.89ppt. The sales expense rate in 21 years was 16.89%, with a year-on-year increase of + 1.39 PPT (30.11% / 15.22% in 21q4 / 22q1, with a year-on-year increase of + 7.71 ppt / – 2.87 ppt), which was due to the increase of labor costs, store rental fees and market promotion expenses. The management fee rate was 6.13%, with a year-on-year increase of -0.03ppt (21q4 / 22q1 was 7.90% / 9.65%, with a year-on-year increase of -1.13ppt / + 0.80ppt). The R & D expense ratio was 2.79%, year-on-year + 0.43ppt (21q4 / 22q1 was 3.47% / 2.90%, year-on-year + 0.43ppt / + 0.43ppt). The financial expense ratio was 0.02%, with a year-on-year increase of + 0.48ppt (21q4 / 22q1 was – 0.27% / – 0.14%, with a year-on-year increase of + 0.84ppt / + 0.02ppt), which was due to the decrease of interest income and increase of rental interest expenses caused by the company’s idle funds used to purchase financial products.
Investment suggestion: according to the operation of 22q1, we slightly reduce the profit forecast. It is estimated that the company will realize a revenue of RMB 2.552/31.02/3.826 billion and a net profit attributable to the parent company of RMB 185242/328 million in 22-24 years, equivalent to EPS of RMB 0.36/0.47/0.64 respectively. The demand for leisure is expected to recover at a high speed in the middle and lower reaches, and the company is expected to maintain a good long-term growth trend. Maintain a “recommended” rating.
Risk tips: the impact of the epidemic is higher than expected, the expansion speed of stores is lower than expected, food safety problems, etc
