Event: the company released its 22-and-a-half annual report. In the first half of 2022, the operating income was 1.426 billion yuan, an increase of 4.68%, the net profit of 126 million yuan, a decrease of 35.66%, and a net profit of 119 million yuan, a decrease of 37.72%.
Revenue side: in the first half of 22, the company achieved operating income of 1.426 billion yuan, an increase of 4.68%, mainly due to the increase in sales prices and changes in product structure. From a quarterly point of view, Q1 achieved revenue of 660 million, an increase of 1.94% over the same period last year. Bing Q2 realized revenue of 766 million yuan, an increase of 7.17% over the same period last year. As far as Q2 is concerned, the company's main products baking application oil realized revenue of 416 million yuan, accounting for 54.41%, 2.02pct lower than Q1, followed by light cream, revenue 148 million, accounting for 19.38%, an increase of 3.65pct compared with Q1; dairy products achieved revenue of 150 million, accounting for 19.65%, reducing 1.79pct compared with Q1. Distribution and direct marketing are the main revenue channels, achieving revenue of 444 million yuan and 320 million yuan respectively, accounting for 58.1% and 41.9%, respectively, increasing 5.81pct and reducing 5.78pct compared with Q1.
Cost side: the expense rate during 22H1 is 14.49%, which is the same as 4.33pct. In terms of single Q2, the rate of sales expenses is 7.51%, which is 0.32pct lower than that of Q1; the rate of management expenses is 4.91%, which is 1.42pct lower than that of Q1; and the rates of R & D expenses and financial expenses are 2.78% and-1.32%, respectively, increasing 0.35pct and 0.08pct compared with Q1. Interest income accounts for 4.94% of Q2's operating income, an increase of 6.81pct compared with Q1.
Profit end: 22H1 achieved a net profit of 126 million yuan, with a decrease of 35.66%, and the net interest rate was 8.81%, mainly due to the increase in operating costs, that is, the increase in the purchase unit price of raw materials and the increase in import and transportation costs. Q2 realized a net profit of 72.6807 million yuan, a decrease of 25.62% over the same period last year.
Actively develop high-end dairy products baking raw materials to meet the upgrading needs, direct distribution online triple sales channels.
2H1 has developed and innovated frozen dough products, stocked a number of new frozen dough products, launched Qiaoyi light cream (for cake), and developed a variety of cream-based JoyQ products such as base milk, plant-based cream and plant-based base, which will be introduced to the market in the second half of the year.
Issued an announcement to set up a wholly-owned subsidiary Chongqing Nanqiao Food Co., Ltd., light cream-frozen dough capacity expansion. The company completed the signing ceremony of the Nanqiao Chongqing production base project with the Jiangjin District Government of Chongqing, and officially settled in Chongqing. The project covers an area of 100mu, with an investment of about 480 million yuan. It is used for the construction of production and processing workshop, R & D workshop and supporting rooms for light cream and frozen dough, with a total construction area of about 60000 square meters. The project is divided into two phases, with a planning area of about 100mu, including 60 mu in the first phase and 40 mu in the second phase. We believe that the construction of the base, on the one hand, further completes the planning of the company's national chemical capacity layout, and on the other hand, increases the pace of expansion of the company's businesses such as frozen dough.
Investment suggestion: with the gradual landing of business production capacity such as frozen dough and the gradual maturity of talent training mechanism, the company will continue to dig deep into the baking market, unlock new consumption scenes such as tea and catering, and release overseas business potential. future performance is expected to continue to develop at a high speed. Due to the obvious impact of rising costs since the beginning of this year, we have adjusted the company's 2022-2023 net profit to 370.46 billion yuan (the previous value is 44,000 million yuan), corresponding to PE27X/22X, maintaining the buy rating.
Risk tips: food safety risk; company operating risk; customer development is not as expected; macroeconomic is not as expected; wholly-owned subsidiary project promotion is not as expected