Event: when the company released its semi-annual report for 2021, 2021H1 achieved a total operating income of 1.362 billion yuan, a year-on-year + 38.62%, a net profit of 195 million yuan, and a total revenue of 714 million yuan, + 29.93%, and a net profit of 98 million yuan, + 27.17%, respectively, compared with a year-on-year basis of + 63.00%, + 63.00%, and + 29.93%, respectively.
Comments: profitability continues to improve, revenue performance increased year-on-year. The company has ploughed the baking oil industry for more than 25 years and has three major production bases in Tianjin, Guangzhou and Shanghai. 2021H1 achieved a total revenue of 1.362 billion yuan, a year-on-year + 38.62%. The gross profit margin of H1/Q2 is 37.29% and 35.93% respectively, and the increase in gross profit margin of H1 is due to the increase in the average price of products. The main reason for the decline of Q2 gross profit margin is that the balance of finished products is increased in advance, and the increase in the purchase unit price leads to an increase in the balance of raw materials, which increases inventory and drives up production costs. In terms of expense rate, the sales / management / finance / R & D expense rate of 2021H1 is 10.85%, 5.72%, 0.47%, 2.72%,-0.74/-1.05/-0.67pct, + 0.28pct, respectively, which means the company increases the investment in the research and development of new products. Taken together, the period expense rate of 2021H1 was year-on-year-2.18pct to 18.82%, driving the net interest rate to 14.34% from + 2.14pct year-on-year. Q2 net profit rate year-on-year-0.30pct to 13.68%, mainly due to gross margin fluctuations.
Consolidate the leading position of baking oil and open up a new space for multi-category development. In the first half of 2021, the company continued to tap the growth momentum for the offline market. Promote the development of the sinking market by setting up urban benchmarking customers, participating in large-scale industry exhibitions and providing customized products. In the first and second tier market, we set up full-time teams for convenience stores, tea and catering, strengthen the maintenance ability of sales staff for new channels, and deepen cooperation with dealers in tea and catering channels, which further deepens the company's leading position in the field of baked oil. In addition, the coordinated development of multiple categories opens a new space for growth. The company's light cream series products continue to expand according to the subdivision of demand, and the R & D and production strength of frozen baked food continues to be strengthened. after the upgrading of western-style dim sum category, it brings considerable income increment for downstream customers. In order to fill the gap in production capacity and cold chain storage capacity, the Shanghai frozen dough production base is being planned and built, and the Tianjin base is also in the process of expanding and upgrading the production line, and plans to add a new Croissant production line. The construction project is expected to be fully put into production in 2022, which will provide support for the rapid growth of the company's frozen dough business in the future.
Profit forecast: from 2021 to 2023, the EPS is expected to be 1.03,1.22,1.55 yuan respectively, corresponding to PE 34X, 29X, 23x respectively, the first time to cover the "overweight" rating.
Risk hint: the cost of raw materials is rising, the competition in the industry is intensified, and the performance of new products is below expectations