\u3000\u3 China Vanke Co.Ltd(000002) 570 Beingmate Co.Ltd(002570) )
Event: the company recently released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of 2.54 billion yuan, a year-on-year increase of – 4.71%, and the net profit attributable to the parent company was 73.31 million yuan, a year-on-year increase of + 122.61%, deducting the net profit not attributable to the parent company of 7.3 million yuan, a year-on-year increase of + 101.52%. Among them, 21q4 achieved an operating revenue of 881 million yuan, a year-on-year increase of + 91.61%, a net profit attributable to the parent of 34.56 million yuan, a year-on-year increase of + 109.22%, and a net profit not attributable to the parent of 152692 million yuan, a year-on-year increase of + 103.27%. The company achieved an operating revenue of 814 million yuan in 2022q1, a year-on-year increase of + 43.68%; The net profit attributable to the parent company was RMB 2013 million, a year-on-year increase of + 38.45%, and the net profit not attributable to the parent company was RMB 155177 million, a year-on-year increase of + 266.35%.
Comments:
The performance of 21q4 and 22q1 reached new highs, and the cash flow from operating activities continued to improve. The company achieved a revenue of 881 million yuan in Q4 in 21 years, with a year-on-year increase of + 91.61%, and a net profit attributable to the parent of 34.56 million yuan, with a year-on-year increase of + 109.22%, deducting a net profit not attributable to the parent of 152692 million yuan, with a year-on-year increase of + 103.27%. The revenue and profit of 21q4 reached a new high in recent five years. The company realized an operating revenue of 814 million yuan in 22q1, a year-on-year increase of + 43.68%; The net profit attributable to the parent company was 2013 million yuan, a year-on-year increase of + 38.45%, and the net profit not attributable to the parent company was 155177 million yuan, a year-on-year increase of + 266.35%. The revenue and profit of 22q1 also reached a new high in the past five years, showing a good reversal trend. In terms of cash flow, the company’s cash flow from operating activities continued to improve, reaching 155 million yuan in 21q4 and 52.9 million yuan in 22q1, both far exceeding the net profit attributable to the parent company in the same period.
The gross profit margin and expense rate of 21q4 and 22q1 decreased simultaneously, and the transformation trend of the company was obvious. The gross profit margin of the company showed a downward trend in the last two quarters, with 36.13% and 38.37% in 21q4 and 22q1 respectively, with a year-on-year decrease of 14.57pct and 14.47pct respectively. The company actively promotes innovative businesses such as ODM and OEM, and speculates that the increase of the proportion of innovative businesses in revenue will lead to the decline of gross profit margin. Meanwhile, the sales expense ratio of 21q4 and 22q1 also decreased from the previous level of 30% + to 23.02% and 25.64%, which further verified the improvement of the proportion of innovative business and achieved preliminary results in the transformation of the company.
Looking forward to 2022: continue to grasp the stock and promote the increment. In 2022, when the industry is under pressure, the company will continue to consolidate the basic market of its own brand and improve the market share by providing cost-effective and high-quality milk powder. Channel research shows that the sales of the company’s key products this year, keruixin, have exceeded that of last year as of April this year, with a rapid growth momentum. On the other hand, the company actively expands the increment of innovative business, obtains customers through full-time marketing, and provides product customization services for maternal and infant vertical platforms and industrial brands with the company’s strong R & D and production system. The increment can be expected this year.
The company’s profit space is downward and upward. In 2022, the company will strengthen the basic market in traditional channels, push keruixin in direct supply channels and harvest orders in key customer channels. The reversal trend is clear and the profit elasticity is large. We expect EPS to be 0.15/0.22/0.32 yuan from 2022 to 2024, with a growth rate of 128% / 45% / 45%. The company’s share price remains at the bottom of “9.9 yuan” for nearly five years, and our share price remains at the bottom of “Pb” for nearly five years.
Risk factors: food safety problems and intensified industry competition.
