Event: on August 30, the company released a semi-annual report that 2021H1 realized operating income of 1.692 billion yuan, an increase of 31.61% over the same period last year, and a net profit of 122 million yuan, an increase of 31.46% over the same period last year.
The performance is in line with expectations, and the food ingredients have achieved a relatively high growth rate. 2021H1 realized operating income of 1.692 billion yuan, an increase of 31.61% over the same period last year, and a net profit of 122 million yuan, an increase of 31.46% over the same period last year.
Among them, Q2 realized operating income and returned net profit of 872 million yuan and 62 million yuan respectively, with a year-on-year growth rate of 23.72% and 4.20% respectively. The lower growth rate of the second quarter than that of the first quarter was affected by a high base. In the first half of the year, the company maintained a sound operation. In terms of products, the revenue of flavors, spices and food ingredients reached 278 million yuan, 119 million yuan and 1.287 billion yuan respectively, with a year-on-year growth rate of 12.29%, 11.52% and 39.97% respectively. Food ingredients have achieved a relatively high growth rate, among which the food ingredients manufacturing business has developed rapidly, according to the revenue data of Tianshun and Beau announced by the company. The income of industrial chocolate and jam reached 266 million yuan and 75 million yuan respectively, with year-on-year growth rates of 37.11% and 44.23% respectively. Food ingredients trade business steadily recovered based on domestic consumer confidence, with a significant increase over the same period last year.
The improvement of gross profit margin and the optimization of expenses promote the increase of net profit margin. 2021H1 achieved a gross profit margin of 18.31%, an increase of 0.17pct over the same period last year. Among them, the flavor and flavor business was affected by the rise in raw material prices and the RMB exchange rate, the gross profit margin decreased, and the gross profit margin of the food ingredients business rebounded significantly.
The 2021H1 sales expense rate and management expense rate are 2.53% and 3.52% respectively, reducing 2.04pct and 0.26pct respectively compared with the same period last year, and the cost optimization is obvious; the company continues to increase R & D investment, 2021H1 R & D expense rate is 1.30%, year-on-year increase 0.1pct, net interest rate is 9.27%, and 1.18pct is higher than the same period last year.
Expand production capacity and strengthen research and development to create a high-speed growth engine. The revenue share of the food ingredient manufacturing business is expected to continue to increase, releasing income elasticity through high growth: 1) the company has technological advantages in industrial chocolate, rich customer resources, product quality is highly recognized, and the scale is in the lead in China. In the future, the downstream OEM demand will be released and incremental customers will be opened up. This expansion will provide a guarantee for the increase of market share. In addition, under the upgrading of consumption, the proportion of pure fat chocolate with high gross margin will further increase and is expected to release profit elasticity. 2) the income of the jam business has grown rapidly in recent years, and the gross profit margin has also entered a rebound stage, which will have more market space in the future and is expected to continue to contribute to growth. The company has leading jam technology, R & D capability, sustainable development of new customers of catering and chain drinks, development of customized and high-end products, and thickening profit margins.
Future development orientation: food flavor comprehensive solution provider. Food consumption pursues the background of "natural and green", which gives rise to high-end demand and drives the growth of the industry. the products of some middle and high-end customers begin to pay more and more attention to natural and health. the company is positioned as a "comprehensive solution provider for food flavor", changing from the original single food ingredients or food flavors to providing comprehensive compound food ingredients, while making use of advanced technology and R & D capabilities. Continuously improve the comprehensive service level of providing customers with "comprehensive food ingredients and flavor solutions".
Investment advice: with the rise of food ingredients, the company's layout in the chocolate and jam industry is expected to seize the industry dividend, and the increase in production capacity will expand its leading position in the industry. In the future, we will position the food flavor comprehensive solution provider, extend the industrial value chain, and enhance the company's core competitiveness in an all-round way. It is estimated that the company's EPS from 2021 to 2023 will be 0.77,0.96,1.21 yuan, corresponding to 18 times, 14 times and 11 times of PE respectively, maintaining a "buy" rating.
Risk tips: uncertainty of overseas epidemic situation; intensified competition in the industry; risk of price war; project construction is not as expected; customer expansion is not as expected; food safety issues.
