\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 132 Chongqing Brewery Co.Ltd(600132) )
2022q1 performance slightly exceeded expectations
The company’s performance slightly exceeded expectations. In 2022q1, the company’s revenue was 3.833 billion yuan, a year-on-year increase of 17.12%; The net profit attributable to the parent company before and after deduction was 341 million and 335 million yuan, with a year-on-year increase of 15.33% and 15.47%. Maintain the forecast of net profit attributable to parent company of RMB 1430, 1640 and 1911 million from 2022 to 2024, corresponding to EPS of RMB 296, 339 and 3.95 from 2022 to 2024, with a year-on-year increase of 22.7%, 14.7% and 16.5%. The current share price corresponds to 42.8, 37.3 and 32.0 times PE. It is optimistic about the performance of Wusu and other high-end products and maintains the “buy” rating.
The products of the whole line have achieved better growth, and the high-end performance is better
In 2022q1, the company’s sales volume increased by 11.7% year-on-year, the share continued to increase, the ton price increased by 4.9% year-on-year, and the structure continued to improve. It is expected to grow rapidly from January to February and be dragged down by the epidemic in March, but the overall momentum is still strong and better than the overall level of the industry. In terms of products, 2022q1 high-end, mainstream and economic products increased by 24.04%, 13.17% and 12.84% respectively year-on-year. The whole series of products showed good growth, and the high-end performance was stronger. Among them, high-end products benefited from the promotion of the big city plan. It is expected that Wusu outside Xinjiang will increase by about 20% year-on-year and achieve double-digit growth in 1664; The mainstream products Lebao and Chongqing brands have increased rapidly, the expected volume and price of the base market economy series products have increased, and the structure of the mainstream and economic series has been significantly improved. In terms of subregions, the northwest, central and southern regions increased by 13.96%, 20.68% and 14.13% respectively year-on-year, and the regional growth rate was relatively balanced.
The cost is under slight pressure and the profitability is still strong
The net profit margin in 2022 decreased by 0.96 PCT year-on-year. According to the new standard, the gross profit margin in 2022q1 decreased by 0.38 PCT year-on-year. It is expected that it is mainly due to the increase in transportation costs and the rise in the price of some raw materials due to the planned extension of transportation distance in big cities. The sales expense ratio was basically flat year-on-year, and the management expense ratio decreased by 0.8pct year-on-year.
We are optimistic about the upgrading trend of Wusu and other high-end products and structures
The company actively responded to reduce the impact of the epidemic, and the follow-up is expected to gradually subside. The cost of short-term packaging materials and other raw materials may be under pressure, but they are relatively controllable. In the medium and long term, we continue to be optimistic about the strong growth momentum of Wusu, 1664 and other high-end products and the continuous upgrading of the structure of medium and low-end products.
Risk tip: the risk of continued weak catering demand, rapid rise in costs and intensified competition
