Gaishi food (836826)
Key investment points
Event: the company released the first quarterly report of 2022, and achieved a revenue of 749546 million yuan (year-on-year + 17.03%) during the reporting period; The net profit attributable to the listed company was -4.209 million yuan (year-on-year); The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 4227100 yuan (a year-on-year decrease of – 33.28%); The basic earnings per share is 0.05 yuan.
Revenue rose steadily. Benefiting from the strong expansion of the company’s Chinese market and the good long-term cooperative relationship between the company and customers and suppliers, the company overcame the impact of the epidemic and increased its revenue by 17.03% in the first quarter. With the resumption of work and production and the recovery of cold chain logistics, Shanghai sales subsidiary is further empowered, and the company’s Chinese market is expected to further expand.
The gross profit margin and expense side are under short-term pressure. The gross profit margin of Q1 in 22 years was 16.79%, with a year-on-year decrease of 3.02%. The decline of the company’s gross profit margin was mainly affected by the seasonal rise in the price of raw materials such as seaweed and the sharp rise in the price of fuel power of the company. With the seasonal rise and decline of raw material prices, the company has communicated and negotiated with upstream and downstream to gradually adjust prices and improve internal quality and efficiency. Under the triple factors, the company’s gross profit margin is expected to continue to repair. In Q1 of 22 years, the expense rate of the company was 9.23%, with a year-on-year increase of 1.90%, of which the sales expense rate was 3.61%, with a year-on-year increase of 0.66%, which was mainly due to the increase of the company’s sales investment, especially in the early cultivation period of China’s C-end market, and the simultaneous expansion of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels.
The large volume of raised investment projects and the expansion of sales end will further improve profitability. The company’s raised investment project, Jiangsu new factory, is expected to be put into operation in the second half of 2022, which will gradually release the annual production capacity of 10000 tons of edible fungi and vegetable seasoned frozen food. Moreover, the company issued the fixed increase plan on March 11, 2022 and announced on April 29 that it had been accepted by the Beijing stock exchange. The raised investment project will further expand the production base in Jiangsu. At that time, it will have the capacity of collaborative production between Dalian and Jiangsu, which will help to improve the regional advantage. In addition, with the follow-up of China’s b-end market seizing the channel under the chain trend, the large-scale expansion of key customers, the development of C-end market and the strengthening of brand cultivation, the profitability of the company will be further improved.
Profit forecast and investment suggestions: considering the phased pressure on the cost side of the company and the subsequent repair is expected, we make a slight adjustment to the profit forecast. It is estimated that the operating revenue of the company from 2022 to 2024 will be 452 million yuan, 570 million yuan and 646 million yuan (unchanged), with a year-on-year increase of 31%, 26% and 13% respectively; The net profit attributable to the parent company was 50 million yuan, 63 million yuan and 75 million yuan respectively (53 million yuan, 65 million yuan and 80 million yuan before adjustment), with a year-on-year increase of 16%, 27% and 19% respectively; The corresponding PE is 19, 15 and 13 times respectively, maintaining the “buy” rating.
Risk warning event: the risk of the epidemic affecting the continuous spread, the progress of the company’s raised investment projects is less than expected, the risk of new capacity digestion, and the risk of intensified market competition.
