\u3000\u3 Bohai Water Industry Co.Ltd(000605) 089 Suzhou Weizhixiang Food Co.Ltd(605089) )
Event:
The company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 765 million yuan, a year-on-year increase of 22.84%, and a net profit attributable to the parent company of 133 million yuan, a year-on-year increase of 6.06%. In 2022, Q1 company achieved a revenue of 186 million yuan, a year-on-year increase of 14.17%, and a net profit attributable to the parent company of 36 million yuan, a year-on-year increase of 21.9%.
Comments:
The prefabricated vegetable industry has achieved rapid growth, and the rising cost has led to a decline in gross profit
From the perspective of revenue structure, the revenue growth rate of beef / Poultry / pork / aquatic prefabricated vegetables in the whole year of 21 was 15.2% / 24.9% / 30.7% / 58.9% respectively. In Q1 of 22, poultry and aquatic products still maintained a year-on-year high growth, which was due to the significant expansion of business in wholesale and online channels. From the cost side, the increase in operating costs is slightly higher than the revenue due to the increase in performance costs and transportation costs of e-commerce business. From the expense side, the sales expense ratio / management expense ratio was 4.73% / 4.49% respectively, with a change of – 0.5% / + 1.28% respectively compared with the same period last year. The increase of management expense was mainly due to the increase of listing related expenses of the company.
The multi-channel business development achieved remarkable results, and the franchise store 22q1 achieved a year-on-year high growth
By channel, the revenue of franchise stores / distribution stores / wholesale / direct sales channels increased by 8.37% / 24.3% / 31.5% / 267.54% respectively in 2021. In addition, the company also opened e-commerce channel business last year, with an annual revenue of 15 million yuan. In the past 22 years, Q1 company accelerated the expansion of stores, with a net increase of 57 franchise stores, and the revenue of this channel increased by 28.65% year-on-year.
Profit forecast and investment rating
From the first quarterly report, East China maintained steady growth, and the revenue of central and South China increased rapidly. In addition, the company opened up new channels in Northeast China, and made brilliant achievements at the beginning of laying new channels. Taking into account the repeated epidemic in East China in April and the cost pressure caused by the price fluctuation of raw materials, we adjusted the revenue forecast for 20222023 to 951 / 1157 million yuan (the original value was 960 / 1203 million yuan), with a year-on-year increase of 24.38% / 21.7%; Adjust the net profit from 2022 to 2023 to RMB 163 / 204 million (the original value is RMB 198 / 250 million), give the forecast of revenue and net profit in 2024 to RMB 1.397 billion and RMB 250 million respectively, corresponding to EPS of RMB 1.63/2.04/2.5 respectively, corresponding to the current share price PE of 37 / 30 / 24 times respectively, adjust the target price to RMB 73.35, corresponding to 45 times PE in 22 years, and maintain the “buy” rating.
Risk tips
The production capacity is lower than expected; Food safety risks; Risk that the coverage and promotion of business areas are less than expected
