The company issues its annual report for 2021. In 2021, the company realized operating income of 2.873 billion yuan, an increase of 23.71%, and a net profit of 368 million yuan, an increase of 13.27%. Of this total, 2021Q4 achieved an operating income of 818 million yuan, an increase of 15.09%.
Revenue side: in 2021, the company achieved operating income of 2.873 billion yuan, an increase of 23.71%. Among them, 21Q1/Q2/Q3/Q4 achieved operating income of 6.47%, 7.14%, 6.93%, 818 million yuan, respectively, with an increase of 49.69%, 29.92%, 10.14% and 15.09%, respectively. In terms of products, the company's revenue from baking application of grease / light cream / imports / frozen dough / stuffing in 2021 was RMB 1.78 billion respectively.
Gross profit margin: the company's gross profit margin in 2021 is 31.12%, which is the same as minus 7.66pct. On a quarterly basis, the gross profit margin of Q1-Q4 in 2021 is 38.80%, 35.92%, 29.95%, 22.14%, respectively. From a product point of view, the gross profit margin of baking application oil / light cream / imports / frozen dough / stuffing is 30.88% 36.37% 27.69% 32.67% 30.57% respectively.
Cost side: the company's expense rate during 2021 is 14.86%, which is the same as minus 6.01pct. Among them, the sales expense rate is 7.36%, which is the same as minus 3.77pct; the financial expense rate is-0.74%, which is the same as minus 0.57pct, mainly because the company receives the deposit interest of the initial public offering funds raised in the current period.
Profit side: the company achieved a net profit of 368 million yuan in 2021, an increase of 13.27%. The consumption trend in the post-epidemic era is gradually changing. In 2021, Q1-Q4 achieved a net profit of 0.98 million yuan, 0.98 million yuan, 0.78 million yuan, and a year-on-year change of + 126.99%, 27.17%, 9.54%, 20.28% respectively.
Channel side: the number of dealers in the company is 305, with 54 new ones, of which South China / Central China / East China / Southwest respectively has 32 dealers 7758 Universe 50x32, with year-on-year changes + 4.05% Universe 11.54% Universe 10.71% Grammer 13.51%. During the reporting period, the company continued to expand channels, accelerate the refinement and sinking of the sales network of first-and second-tier cities, and enhance the growth momentum of third-and fourth-tier cities.
Supply side: frozen dough production capacity is gradually released, the company orderly promoted the upgrading and construction of various production lines in 2021, and further increased production capacity and profits through the new construction and expansion of frozen dough production line.
Shanghai Nanqiao Phase II Frozen dough Project is under way, and production capacity is expected to be released gradually.
Investment suggestion: as a leader in the baking oil industry, the company has strong technology accumulation to help stabilize the quality of its products. The company will continue to plough the baking market, unlock tea, catering and other new consumption scenes, release the potential of overseas business, the future performance is expected to continue to develop at a high speed. Affected by the price of raw materials, we adjust the company's homing net profit forecast for 2022-2023 to 440,000,000 yuan (the previous value is 52,000,000 yuan), corresponding to PE23X/19X, maintain the buy rating.
Risk hints: repeated risk of epidemic situation, risk of fluctuation of raw material prices, and the company's management is not as expected.