Anjing Food (603345): Catering channels continue to expand production capacity

Anjing Food (603345): Catering channels continue 杭州桑拿网 to expand production capacity

Event: Yasui Food released its 2018 annual report: operating income was 42.

$ 5.9 billion, an increase of 22 per year.

25%; realize net profit attributable to mother 2.

700 million, an annual increase of 33.


In the fourth quarter, it achieved revenue of 13.

1.9 billion, an annual increase of 26.

11%; net profit attributable to mother is 0.

$ 7.4 billion, an increase of 16 per year.

55%, achieving EPS1.

25 yuan.

The company also announced a dividend plan, which is planned to be 3 for every 10 shares.

RMB 76 cash bonus (including tax).

  Key points of investment: Catering power, strong areas continue to increase.

  In terms of different products, the revenue of hot pot products was 27.

62 ppm, a ten-year increase of 8.

36%, a decrease of 6 compared to 2017.

39%, mainly because the company is optimistic 苏州桑拿网 about the development of the catering industry in the future. It will upgrade other product categories including Qianye Tofu, egg dumplings, tempura fish and shrimp into alternative products, and realize revenue in 18 years.

9.5 billion.

The other two categories of frozen frozen surimi products and frozen meat products benefited from the expansion of production capacity to achieve revenue of 15%.

67 ppm and 11.

95 ppm, an increase of 21 in ten years.

29% and 20.


The noodle products are subdivided into high-end food and beverage products while the capacity of the Wuxi base is being released, achieving revenue of 10.

98 ppm, an increase of 18 in ten years.


Under the new product structure adjustment, the company has formed hot pot products (accounting for 64.

85%), noodle products (proportion 25.

79%) and refractive index products (9.

28%) Three-legged product layout.

In terms of regions, East China has completed 22 on the basis of a high base as a core region.

High growth rate of 49%; Central / Southwestern China also maintained a rapid growth trend, respectively 33.

51% / 22%; North China / Northeast / Northwest growth rates were 18 respectively.

52% / 18.

88% / 19.

8%, each region has maintained steady growth based on capacity expansion.

  Raising prices eased pressure on costs, and capacity expansion continued.  The company’s gross profit margin in 18 years was unchanged from 17 years, which was 26.

51%, affected by African swine fever in the second half of the year, the company adopted imported pork substitutes, the cost went up. In October and December of 18, the company raised the price of its products to hedge the cost, covering part of the cost.

On the expense side, under the company’s scale effect, the 18-year sales expense ratio and management expense ratio decreased by 0.

64% and 1.

57%; and the financial expense ratio due to new capacity and loans issued by convertible bonds increased by 0 every year.

3% to 0.


Benefiting from the decline in the expense ratio during the period, the company’s 18-year net profit margin increased by 0 compared with the 17-year extension.

54% to 6.

35%, profitability has improved.

  The company has started the nationwide production capacity distribution since 2011. Currently, it has production bases in Xiamen, Taizhou, Wuxi, Liaoning, Sichuan and Central China.

In 2018, after the new capacity of Xiamen, Wuxi and Liaoning was put into production, the output was gradually realized4.

3. Maximum production capacity reached 116%.

It is expected that the production capacity of Sichuan Plant 2 in 19 years and the second phase of Taizhou and Liaoning will gradually increase the production capacity by about 7 by increasing equipment and technological transformation.

The annual release of production capacity guarantees the reduction of expenses and costs under the effect of scale.

  Earnings forecasts and investment advice.

  We are optimistic about the company’s later capacity expansion and expected product contribution performance. We estimate that the revenue for 2019-202 will be 51.



7.7 billion, +21.

39% / 21.

48% / 19.

05%; net profit attributable to mothers is 3.



1.1 billion, +22 per year.

89% / 23.

3% / 24.

88%, EPS is 1.



37, corresponding to PE is 26/21/17 times.

Maintain the “Recommended” level.

  Risks suggest that new product launches and capacity releases are less than expected, and food safety issues.