Anjing Food (603345) First Quarterly Report Review: Steady Revenue Growth and Better-than-Expected Performance
Event Anjing 成都桑拿网 Food announced the first quarter report of 2019, and the company achieved revenue of 10 in 19Q1.
96 trillion, ten years +14.
61%, achieving net profit attributable to mother 0.
65 ppm, +19 a year.
6%, deducting non-net profit of 0.
600,000 yuan, +23 a year.
42%; budget benefit is 0.
Investment Highlights The swine fever incident has a short-term impact on revenue performance, and capacity release will still drive growth.
The company achieved revenue of 10 in 19Q1.
9.6 billion, +14 per year.
61%, a growth rate of ten years -4.
32pct, ring than -16.
The rapid growth of revenue was mainly affected by the early swine fever incident. The sales scale in January was basically the same; the company’s sales volume has returned to normal in February-March, and the growth rate is expected to be in the 15-20% range.
In terms of categories, the company’s noodle products / meat products / surimi products / substitute products are added +34 respectively.
29% / + 16.
11% / + 22.
41%, of which the increase in production of high-additive production of noodle products was driven by releases, at least, also due to the increase in supply required by the Supermarket before the implementation of the new replacement rate on April 1.
Negative growth in meat products was mainly affected by the swine fever event.
From the perspective of channels, the company’s distribution / supermarket / special / e-commerce are separated by +10.
87% / + 25.
05% / + 40.
02% / + 65043.
From the follow-up point of view, from 2019 to 2020, the company’s supplementary production capacity will be released intensively, and the throughput increase is expected to reach 5 and above 10 respectively. Therefore, the company’s product demand is currently good, and there is still an order gap in the peak season. It is expected that the market will fully absorb the company’s new capacity, Revenue growth is expected to remain stable.
Reduced sales discounts and product structure adjustments to hedge pressure on raw material costs.
The company’s 19Q1 gross profit margin was 26.
36% every year -0.
59 points, -0.
The company’s gross profit margin decreased slightly, mainly due to the increase in the price of pork raw materials (affected by domestic swine fever fermentation, the company began to purchase all imported pork in December 18, the price interval + 15%); but the decline in gross profit margin can be controlled, mainlyDue to cost pressure, the company reduced the discount rate of the product in two batches in early October and December of 18 (the two price increases in disguise are expected to be 2-3% and 1-2%, respectively, involving 50% of productsThe company also adjusted the product formula to reduce the proportion of pork products (expected to decrease from 20% to about 10%).
The expense ratio decreased and profitability improved slightly.
The company’s net profit attributable to its mother was 0 in 19Q1.
6.5 billion, +19 per year.
19Q1 company expenses 18.45%, -0 per year.
Among them, the sales / management / finance / R & D expense ratios are 14 respectively.
04% / 2.
66% / 0.
42% / 1.
33% each year -0.
84pct / -1.
71pct / + 0.
We judge that the optimization of the company’s sales expense ratio is due to the adjustment of the channel structure. Since 18 years, the company has reduced the proportion of supermarkets and increased the proportion of distribution channels, which is beneficial to the improvement of profitability.
The company’s 19Q1 net profit was 5.
92%, ten years +0.
25pct, ring than +0.
32pct, profitability keeps high in the industry.
Mid- and long-term highlights: The medium-term sale of real estate nationwide is about to be completed, and the market share is expected to continue to increase.
The company’s overall main factories are mainly concentrated in the eastern coastal areas (2 in Xiamen, 2 in Jiangsu, 1 in Liaoning, and 1 in Sichuan). It plans to expand with the “sale of real estate” model. The capacity of the Sichuan Ziyang plant will be gradually released in 2019. It is expected thatAt the end of 19, the company’s total designed production capacity is expected to reach more than 40; in 2020, the company’s North China Tangyin factory is also expected to be put into operation (an annual design output value of 1 billion US dollars, an annual output of 10 tons of production scale), when the company will form 7 production bases,The nationwide layout of the 9 factories is expected to fully release the production capacity, and the total throughput is expected to reach more than 60 inches.
Facing the strong demand for hot pot in central China, the company has been actively expanding its channels. It is expected that after the nationalization of production capacity is completed, the revenue volume will reach more than 6 billion US dollars in 2020, and the city’s share will promote continuous increase.
Long-term-Profitability may gradually become apparent after sharing stability.
In the process of expanding the city’s share of the budget, the budget company moderately reduced the price when the cost was low, and was relatively cautious about raising the price when the cost was high, and obtained an increase at the cost of losing some of the net interest rate, resulting in fluctuations in performance.
With the expansion of the company’s scale, the cost advantage brought about by the emergence of scale effects will become more prominent. Under the condition that the pricing is lower than that of the industry, the company can also enjoy higher profits. Then, in the face of cost fluctuations, performance stability is expected.Better than the industry, it is expected to achieve a virtuous circle of the leading strong Hengqiang.
Profit forecast and investment recommendations: The company is currently in the mid-term of cumulative release + nationalized layout. In the future, it will change its brand rating and channel sinking, the industry penetration rate will continue to increase, and the scale effect will continue to appear.
We expect the company’s revenue and net profit to be 50 in 2019.
08 thousand yuan (+17.
6%) and 3.
1.9 billion (+17.
9%), corresponding to the closing price on April 25, 2019, the company’s PE in 2019 is 28x.
Maintaining the level of “prudent increase in holdings”, it is recommended to pay active attention.
Risk reminders: macroeconomic fluctuations, raw material cost fluctuations, increased industry competition, and food safety issues