Events:
Xiangjia shares released its semi-annual report for 2022: during the reporting period, the company achieved a total operating income of 1.62 billion yuan (+ 16.71% compared with the same period last year) and a net profit of 4.8761 million yuan (+ 196.54%).
Among them, 2022Q2 achieved a total operating income of 844 million yuan and a net profit of-6.8169 million yuan.
Main points of investment:
During the reporting period, the company achieved a total operating income of 1.62 billion yuan (year-on-year + 16.71%) and a net profit of 4.8761 million yuan (year-on-year + 196.54%). The total operating income of Q2 company is 844 million yuan, and the net profit is-6.8169 million yuan.
① Q2 yellow feather chicken price is low, the performance is short-term. During the reporting period, the company sold 18.1476 million live birds, with sales revenue of 409 million yuan (year-on-year + 20.83) and ice-fresh sales revenue of 981 million yuan (+ 16.91%). 2022Q2 achieved a total operating income of 844 million yuan and a net profit loss of-6.8169 million yuan, mainly due to the continued decline in yellow chicken prices in the second quarter, superimposed by generally rising cost pressure and performance pressure. However, in June 2022, affected by the improvement of market supply and demand and the warming of the market, the company's live poultry sales quantity, average price and income showed an upward trend. In the second half of 2022, the yellow feather chicken may usher in the industry boom cycle.
② R & D and financial expenses increased significantly. During the reporting period, the company spent 13.6998 million yuan on research and development (+ 80.12% compared with the same period last year), mainly because the company increased its R & D investment in free breeds of poultry; the financial cost was 8.7978 million yuan (+ 111.73% compared with the same period last year), mainly due to the increase in borrowing and the increase in interest expenses caused by the issuance of convertible bonds.
The price of ③ raw materials is high, and the operating cost pressure appears. During the reporting period, the company's operating cost of live poultry increased by 32.02% compared with the same period last year, and the gross profit margin decreased by 8.91% year-on-year, mainly due to a large increase in the price of feed raw materials; the operating income in eastern China and southwest China increased by 42.6% and 34% respectively over the same period last year, mainly due to a steady increase in fresh income, but at the same time, operating costs also rose, up 44.71% and 37.29% respectively.
Continue to lead the chilled industry, capacity expansion in an orderly manner. The chilled business has certain technical barriers and transportation difficulties, so most enterprises are not involved in the expansion of this field, and the company has grown into a "leader" in the industry with its experience of continuous ploughing and exploration for many years.
The company has strict procurement quality control standards and quarantine procedures for purchased chilled poultry, which helps the company to establish a high-quality brand image and enhance consumer stickiness. In addition to continuing to help the further growth of the chilled business, the expansion of the company's broiler breeding capacity is also in an orderly process, and the progress of the construction project of a standardized breeding base for 12.5 million high-quality chickens has been slowed down by the epidemic, but some of these farms have been completed and put into production one after another, producing economic benefits.
The yellow chicken industry ushered in an upward period, and yellow chicken prices are expected to continue to rise in the second half of the year. In the past two years, the industry has continued to lose production capacity and become more thorough, and this round of yellow feather chicken market is more persistent. Yellow chicken has the characteristics of fresh sale, live poultry, hot fresh and chilled constitute the three forms of yellow chicken, which determines the weak controllability of its supply, and the gap of supply will bring full release of price elasticity.
Pig prices start the upward cycle in the second half of the year, after the recovery of the epidemic and the improvement of seasonal consumer demand, yellow feather chicken prices have a better fundamental support, the company is expected to fully benefit from rising prices, ice fresh profitability to return to the upward channel.
Profit forecast and investment rating we think that the return net profit of the 2022-2024 company is 2890.327 million yuan, corresponding to the PE of 21.83Comp13.87Compact 12.27 times, maintaining the "buy" rating.
The risk indicates the risk of epidemic disease in livestock; the risk of price fluctuation of raw materials; the risk of business model; the risk of food safety; the risk that the company's performance expectations are not up to standard.