\u3000\u3 Bohai Water Industry Co.Ltd(000605) 338 Zhongyin Babi Food Co.Ltd(605338) )
Event: the company released 22q1 performance. In 22q1, the company realized an operating revenue of 310 million yuan, a year-on-year increase of 22.38%, and realized a net profit attributable to the parent of 1.45 million yuan, a year-on-year decrease of 89.46%. The net profit attributable to the parent after deduction was 39 million yuan, an increase of 192.61%. The company accelerated its regional expansion in Central China, and the central China M & a project was completed in March 2022.
Revenue side: ① from the perspective of different channels, the franchise revenue of 22q1 company was 232 million yuan, an increase of 13.17% at the same time, accounting for 75.10% and a decrease of 6.12 PCT at the same time; The revenue of Direct stores was 07 million yuan, an increase of 74.25%, accounting for 2.33%, an increase of 0.69 PCT; The revenue of group meal channel was 64 million yuan, an increase of 60.05%, accounting for 20.83%, and an increase of 4.90 PCT. ② By product, the revenue of 22q1 food was 277 million yuan, accounting for 89.66%, an increase of 0.41 PCT; The revenue of pastry was 127 million yuan, accounting for 41.07%, an increase of 6.45 PCT; The revenue of stuffing was 70 million yuan, accounting for 22.47%, with a decrease of 5.28 PCT; The revenue of purchased food was 81 million yuan, accounting for 26.13%, with a decrease of 0.75 PCT. We believe that there may be three reasons for the increase in the proportion of pastry products: 1) due to the higher proportion of pastry in the group meal product structure, the demand for 22q1 group meal increased; 2) Under the epidemic situation, the main selling quick-frozen finished pastry of community group purchase; 3) Under the epidemic situation, some take out platforms are allowed to sell quick-frozen finished pastries.
Cost side: ① the gross profit margin of 22q1 was 27.35%, with a year-on-year increase of 4.66pct, and the gross profit margin of the company increased steadily; ② The company's expense rate during 22q1 was 9.77%, a year-on-year decrease of 5.04pct. The company's ability to control expenses was enhanced. The decrease of expense rate during the period was mainly due to the decrease of sales expense rate. 1) 22q1 sales expense ratio was 4.37%, with a year-on-year decrease of 7.58pct; 2) 22q1 management expense ratio was 7.36%, with a year-on-year increase of 0.27pct. 3) 22q1 financial expense ratio was - 2.45%, with a year-on-year increase of 1.97pct, mainly due to the increase of interest expenses.
Profit side: the deduction of non-profit is in line with expectations, and the profitability has increased significantly. In 2022, Q1 realized a net profit attributable to the parent company of 1.45 million yuan, a year-on-year decrease of 89.46%, and a net profit attributable to the parent company of 39 million yuan after deduction, an increase of 192.61%. In 2022, the gross profit margin of Q1 company's sales was 27.35%, increased by 4.66 PCT at the same time, and the net profit margin of sales was 0.38%, decreased by 5.04 PCT at the same time. The net profit margin decreased significantly, mainly because the net income from changes in fair value of 22q1 was -51 million yuan, which dragged down the sharp decline of net profit attributable to the parent company.
Investment suggestion: the company has actively planned to expand stores in the past 22 years. Since the epidemic, the company, as a rigid demand & Shanghai Minsheng material enterprise, has stable store demand. It is expected that the company's group meal business and takeout business are expected to meet the rapid development under this round of epidemic. We estimate that the net profit attributable to the parent company in 22-23 years is 265 million yuan / 322 million yuan respectively (the previous value is 265 million yuan / 375 million yuan). Maintain the "buy" rating.
Risk tips: repeated epidemic risk, less than expected risk of expanding stores, macroeconomic fluctuation risk and food safety risk
