\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 952 Jiangsu Provincial Agricultural Reclamation And Development Co.Ltd(601952) )
Main points:
The performance of the company’s annual report and first quarter report increased steadily, and the gross profit margin of self-produced and self sold core products increased.
The company recently released its annual report and first quarterly report: in 2021, it achieved an operating revenue of 10.64 billion yuan, a year-on-year increase of 23.4%, a net profit attributable to the parent of 737 million yuan, a year-on-year increase of 10.1%, and a net profit of 588 million yuan after deduction, a year-on-year increase of 5.1%; In 2022q1, the operating revenue was 2.41 billion yuan, a year-on-year increase of 31.4%, the net profit attributable to the parent was 134 million yuan, a year-on-year increase of 15.0%, and the net profit after deduction was 107 million yuan, a year-on-year increase of 10.5%. The company’s revenue growth is higher than the profit growth, mainly because it has carried out a large number of foreign procurement and export and agricultural materials trade, and the profit margin of the company’s self-produced and self sold core products has increased steadily.
The company has a solid advantage of high grain yield, and the rise in rice and wheat prices has pushed up the planting business.
From 2017 to 2021, the company maintained a rice planting area of more than 1 million mu and a wheat planting area of about 1 million mu. As of autumn sowing in 2021, the company’s land circulation area (including land custody) has increased significantly to 289000 mu, and the circulation area may be further increased in 2022. In 2021, the company had a solid advantage of high grain yield, with a total annual yield of 1.266 million tons of wheat and rice (including contract planting yield), ranking at the historical high-yield level. The average yield of wheat in the headquarters was 1147 kg per mu, a record high. The average yield of rice in the headquarters was 1245 kg per mu, and the yield of wheat and rice in the expansion base reached 927 kg per mu and 1101 kg, both at the historical high-yield level.
In 2021, the company realized a revenue of RMB 3.18 billion from the planting industry, a year-on-year decrease of 3.1%. However, thanks to the moderate upward price of rice and big wheat, the company realized a gross profit of RMB 844 million from the planting industry, a year-on-year increase of 21.5%. By category, the company’s rice revenue was 1.55 billion yuan, a year-on-year decrease of 10.7%, the external sales volume of rice was 222000 tons, a year-on-year decrease of 27.4%, the sales price was 2712 yuan / ton, a year-on-year increase of 2.6%, and the gross profit was 300 million yuan, a year-on-year increase of 13.2%; The revenue of big wheat was 1.343 billion yuan, a year-on-year increase of 1.5%, the external sales volume of big wheat was 321400 tons, a year-on-year decrease of 44.6%, the sales price was 2476 yuan / ton, a year-on-year increase of 7.9%, and the gross profit was 444 million yuan, a year-on-year increase of 27.6%; The income of contract fund was 217 million yuan, with a year-on-year increase of 8.7%, and the gross profit was 78 million yuan, which was basically the same as that in 2020. In 2022q1, the company’s rice and wheat business developed steadily. The export volume of rice was 73700 tons, with a year-on-year increase of 125.9%, mainly due to the export sales of 61300 tons of self-produced wheat and wheat, with a year-on-year increase of 5.5%, and the export sales of 62800 tons of imported wheat and wheat, with a year-on-year increase of 37.22%.
The company adheres to the development strategy of the whole industrial chain, and the market channels of rice industry and edible oil are relatively complete.
Adhering to the two wheel drive of “industrial operation + capital operation” and the principle of paying equal attention to both connotative growth and extensional expansion, the company implements the whole industry chain development strategy of “focusing on Seed Industry and rice industry and developing multiple industries simultaneously”. Based on the planting industry and focusing on Seed Industry and grain and oil processing, the company is committed to becoming an industry-leading high-quality and safe Shenzhen Agricultural Products Group Co.Ltd(000061) supplier and comprehensive agricultural service provider. The market pattern of rice products of suken rice industry has shown a diversified model of “civil + industrial + reserve”. The product market covers Jiangsu, Shanghai, Zhejiang, Guangdong, Fujian, Hainan, Shaanxi and other places, and a relatively complete marketing network system has been established; The market channels of grain Shenzhen Agricultural Products Group Co.Ltd(000061) and edible vegetable oil are relatively high, and the marketing system of suken rice industry also facilitates the expansion of the marketing network of edible vegetable oil; Dahua seed industry has established a dense network marketing system in Jiangsu Province. Conventional rice and wheat seeds have a high market share and significant market advantages in Jiangsu Province. In 2021, the company’s seed industry revenue was 1.72 billion yuan, a year-on-year increase of 29.1%, and the seed industry gross profit was 196 million yuan, a year-on-year increase of 10.9%; The revenue of rice industry was 1.357 billion yuan, an increase of 8.1% year-on-year, and the gross profit of rice industry was 86 million yuan, a decrease of 29.6% year-on-year; The income of edible oil was 3.037 billion yuan, a year-on-year increase of 8.0%, and the gross profit of edible oil was 246 million yuan, a year-on-year decrease of 2.9%. In 2022q1, the company sold 27900 tons of wheat seeds, a year-on-year increase of 12.0%, and 228 million yuan of rice seeds, a year-on-year decrease of 11.9%; The sales volume of rice was 76800 tons, a year-on-year decrease of 5.5%, and the sales volume of edible oil was 58500 tons, a year-on-year decrease of 6.9%.
Investment advice
We expect that from 2022 to 2024, the company’s revenue will reach 11.502 billion yuan, 13.748 billion yuan and 16.548 billion yuan, with a year-on-year increase of 8.1%, 19.5% and 20.4% respectively, and the net profit attributable to the parent company will reach 933 million yuan, 1.101 billion yuan and 1.252 billion yuan, with a year-on-year increase of 26.6%, 18.0% and 13.7% respectively, and eps0.5% 68 yuan, 0.8 yuan, 0.91 yuan. We give the company 25 times PE in 2022, with a reasonable valuation of 17 yuan, and maintain the “buy” rating unchanged.
Risk tips
Grain prices fell sharply; natural disaster.
