\u3000\u3 Shengda Resources Co.Ltd(000603) 288 Foshan Haitian Flavouring And Food Company Ltd(603288) )
Performance summary:
It was announced that in 2022q1, the revenue was 7.21 billion, a year-on-year increase of 0.72%, and the net profit was 1.83 billion, a year-on-year decrease of 6.4%, which was lower than expected.
Affected by the epidemic in the first quarter, the suspension of food in some areas and the slowdown of offline logistics have significantly put pressure on the company’s performance. The revenue of soy sauce, seasoning sauce and oyster sauce reached 4.08 billion, 810 million and 1.13 billion respectively, with a year-on-year decrease of 0.5%, 8.6% and 3.2%. From the perspective of channels, the offline revenue was 6.49 billion, a year-on-year decrease of 3.9%. During the reporting period, the number of dealers decreased by 291, and the online revenue was 290 million, a year-on-year increase of 202%. The scale expanded rapidly. Geographically, the sales revenue of the central and western regions decreased by 9.3% and 7.3% year-on-year respectively, and the revenue of the eastern, southern and northern regions increased by 5.6%, 6% and 0.4% year-on-year respectively. In terms of gross profit margin, the gross profit margin during the reporting period was 38.17%, with a slight increase (+ 0.04 percentage points) month on month, which was mainly due to the previous price increase offsetting some upward pressure.
In terms of expenses, the company continued to accurately control expenses during the reporting period, and the expense rate decreased by 0.3 percentage points year-on-year to 7.89%, of which the sales expense rate decreased by 0.27 percentage points year-on-year, the management expense rate increased by 0.2 percentage points year-on-year, the R & D expense rate decreased by 0.36 percentage points year-on-year, and the financial expense rate increased by 0.13 percentage points year-on-year.
In terms of cash flow, due to the rise of prices, the increase of procurement expenses, the increase of accounts payable and the year-on-year increase of advertising and promotion expenses, the net cash outflow from operating activities during the reporting period was 1.08 billion.
Looking forward to the future, it is expected that the company will still be under pressure from the epidemic in the second quarter, but the company has excellent comprehensive strength and stable competitive barriers. After the epidemic is improved, it is expected to gradually get out of the haze and achieve steady growth. The profit forecast is lowered. It is estimated that the net profit will be 7.2 billion and 8.5 billion respectively from 2022 to 2023, with a year-on-year increase of 8% and 18% respectively. The EPS will be 1.71 yuan and 2.02 yuan respectively. The current share price corresponds to 52 times and 44 times PE respectively, maintaining the investment proposal of “interval operation”.
Risk tip: the cost pressure is higher than expected, the catering recovery is lower than expected, and the expansion of new retail channels is lower than expected
