2021H1's performance is solid, the household consumption sector is strong, the snack food performance is solid, and the beverage business is recovering. The company continues to promote internal reform and carding, while constantly carrying out product innovation, looking forward to the continuous release of the results of the company's reform, driving the sustained growth of the core brand.
2021H1 revenue / net profit increased by 11.1% and 7.3% respectively, in line with expectations. 2021H1, the company achieved an income of 11.287 billion yuan, an increase of 11.1%, and a net profit of 2.013 billion yuan, an increase of 7.3%.
Household consumption is strong, snack food is robust, and beverage business is recovering. Household consumption: the income of 2021H1 reached 1.679 billion yuan, an increase of 31.2%. Among them, 1 Meibachen: 2021H1 achieved an income of 614 million yuan, an increase of 52.4%, maintaining rapid growth. The company actively promotes channel expansion and improves the quality of terminal outlets. As of 2021H1, the number of terminal outlets is about 150000, with an increase of 19% and average terminal sales of 28%. Meibachen has achieved national chemical capacity distribution through 18 factories, with a daily allocation rate of 42% and a return rate of 11.5%. 2 Doubamoto: 2021H1 achieved an income of 1.064 billion yuan, with an increase of 21.5%. In the first half of the year, the company launched the first domestic normal temperature plant yogurt brand "planting Youjia". Snack food: 2021H1 achieved an income of 4.86 billion yuan, an increase of 0.4%, and the leading position of local brands is solid. Ready-to-drink drinks: 2021H1 realized income of 3.683 billion yuan, an increase of 11.2%. 1 Lehu: 2021H1 achieved an income of 1.9 billion yuan, an increase of 15.01%, and recovered well. 2 and its positive: 2021H1 realized income of 1.045 billion yuan, an increase of 1.2%.
The rise in the price of raw materials led to a decrease in gross profit margin, an increase in other income and a slight decrease in net profit margin. 2021H1's gross profit margin also fell by 1.7Pcts to 38.3%. From the point of view of its sub-business, 1 the gross profit margin of household consumption business decreased 2.9Pcts, which was mainly caused by the increase in the proportion of Meibachen, which was in the cultivation period; 2) the gross profit margin of snack food business decreased with 2.1Pcts, mainly due to the rise of raw material prices; and 3) the gross profit margin of instant drinks increased with 0.8Pct, mainly due to the increase of Lehu's proportion with higher gross profit margin. The sales expense rate and the management expense rate were the same as the increase in 0.1/0.1Pct, which were basically the same. In addition, during the reporting period, the company's other income increased by 210 million yuan, of which bank interest income / government subsidies increased by 0.6 / 150 million yuan, financial expenses increased by 36.03 million yuan, and the effective income tax rate increased by 1.0Pct. The combination reduced 2021H1's net interest rate by 0.6Pct to 17.8%.
The results of the reform are gradually emerging, and product innovation drives growth. In terms of channel reform, the company has basically completed the reform of team structure, dealer business and price system, and different categories have special team management and individual dealer docking. At the same time, the company unifies the ex-factory price and terminal price nationwide, redistributes all levels of profits, and ensures dealer profits and channel stability. In terms of product innovation, the company continues to promote product innovation. 1 Household consumption, as of 2021H1, Meibachen has more than 70 SKU, and the proportion of new product shelves and sales continues to increase. In addition, the company plans to launch new flavors and new packaging of Youjia yoghurt in September, and launch new products for children, hitting the number one brand in the domestic ready-to-drink soy milk market. 2 ready-to-drink beverages, the company launched Lehu 500ml new packaging in August to create differentiated specifications and pricing. In line with its positive herbal tea consumption trend, the first sugar-free herbal tea and sparkling herbal tea were launched in the first half of the year to create a new source of performance growth.
Risk factors: the consumption boom is declining, the epidemic control is not as expected, and the development of new products is not as expected.
Investment advice: maintain 2021 EPS 2022 / 2023 forecast 0.29 Universe 0.32 Universe 0.34 yuan. With reference to the valuation of the comparable company, 15 times PE will be given in 2021, corresponding to the target price of HK $5. Maintain the "overweight" rating.