\u3000\u3 Bohai Water Industry Co.Ltd(000605) Hengfeng Information Technology Co.Ltd(300605) 300)
Event: the company released 21 annual reports and 22 quarterly reports. In 2021, the company achieved an operating revenue of 2.399 billion yuan, a year-on-year increase of 28.02%, and a net profit attributable to the parent company of 151 million yuan, a year-on-year decrease of 30.19%. 22q1 achieved an operating revenue of 522 million yuan, a year-on-year decrease of 11.32%, and the net profit attributable to the parent company was 17 million yuan, a year-on-year decrease of 69.53%.
Revenue side: 1) quarterly, Q1 / Q2 / Q3 / Q4 company achieved revenue of 589 million yuan / 520 million yuan / 646 million yuan / 645 million yuan respectively in 2021, with a year-on-year change of 81.77% / 34.00% / 17.08% / 5.58%. 2) By industry, the revenue of the food industry was 2.272 billion yuan, an increase of 31.95%. 3) By product, 21 / 22q1 and vegetable fat powder (powder grease) achieved revenue of 1.857 billion yuan / 379 million yuan respectively, with a same increase of 25.46% / – 19.37%; Coffee revenue was 102 million yuan / 33 million yuan, an increase of 109.07% / 82.72% at the same time; RMB 1.871 billion yuan / year, with a revenue increase of RMB 17.7 billion yuan / year; The revenue of other products was 242 million yuan / 56 million yuan, an increase of 47.19% / 1.92% at the same time. The increase of main business investment, expansion of production capacity and development of channels have helped the stable growth of revenue of various core categories. 4) Sub sales mode: in 2021, the direct sales revenue was 1.927 billion yuan, an increase of 38.38% at the same time; The distribution revenue was 345 million yuan, an increase of 4.77%. The company’s revenue increased by 28.02% in 21 years, mainly due to the increase in sales of core categories..
Cost side: 1) the gross profit margin of the company in the 21st year was 13.59%, with a decrease of 10.87 PCT, mainly due to the increase of raw material procurement cost in the 21st year and the adjustment of transportation cost to operating cost according to the requirements of the new income standard. According to the company’s transportation cost and sea freight of about 72 million in the 20th year, it accounted for about 3% of the revenue in the 21st year; The company’s 22q1 gross profit margin was 11.47%, with a decrease of 9.09pct. 2) The company’s expense rate during 22q1 was 8.03%, with an increase of 0.13pct; During 2021, the expense rate was 5.79%, with a decrease of 4.20pct. ① sales expenses: the company’s 2021 sales expense rate was 1.91%, with a decrease of 3.90pct, mainly due to the adjustment of accounting standards. ② Administrative expenses: 21. The rate of administrative expenses (including R & D expenses) was 3.94%, with an increase of 0.18pct. ③ Financial expenses: the financial expenses of the company in 2021 were – 0.05%, with a decrease of 0.48pct, mainly due to the increase of interest income in 21 over the same period of last year and the decrease of exchange loss due to the impact of exchange rate fluctuations.
Profit side: the net profit attributable to the parent company of 21q1 / Q2 / Q3 / Q4 was 57 million yuan / 15 million yuan / 39 million yuan / 40 million yuan respectively, with a year-on-year change of 44.05% / – 60.14% / – 39.98% / – 45.41%. 22q1’s net profit attributable to the parent company was 17 million yuan, a year-on-year decrease of 69.53%; The net profit attributable to the parent company after deducting non profits was 14 million yuan, with a decrease of 73.95%. The net profit attributable to the parent company of the company decreased by 30.19% in the same year, mainly due to the rise in the price of raw materials.
① the company vigorously promotes the business of coffee and plant substrate blocks and promotes zero anti fat end products; Give full play to the synergy between coffee business and fat powder business, implement the “project with an annual output of 2160 tons of freeze-dried coffee”, improve the grade and added value of coffee products, strengthen market development and marketing, and enter the plant-based oat milk market with “extraordinary wheat” brand oat milk; ② In terms of product structure, the company has established a comprehensive product system to meet the differentiated requirements of customers, and the number of products traded in the past 21 years has reached more than 1800; ③ In terms of production and sales, the sales of vegetable fat powder / coffee / plant-based / other products in 21 years were 168403 tons / 2459 tons / 4468 tons / 29845 tons respectively, with a year-on-year change of 19.98% / 49.59% / 133.26% / 42.50%.
Investment suggestion: the company’s brand system layout is well constructed, and the transformation of the leader at the end of fat planting is accelerated. Coffee and plant-based drinks are driven by the troika. Based on the negative impact of the epidemic on Residents’ short-term demand and logistics in the past 22 years, we adjusted the net profit of the company from 2022 to 2023 to 160 million yuan / 250 million yuan respectively (the previous value was 230 million yuan / 410 million yuan), and the corresponding PE multiples were 32x / 21x respectively. Maintain the “buy” rating.
Risk warning: repeated epidemic risk; Insufficient consumption power of residents; Business risks of the company; Food safety risk
