Main points of investment:
The company issues its 2022 half-yearly report. 2022H1, the company realized operating income of 1.628 billion yuan, + 16.7% year-on-year, and net profit of 4.876 million yuan, + 196.5% compared with the same period last year. The comprehensive gross profit margin is 15.97%, year-on-year-1.3pct, and the net profit rate is 0.26%, year-on-year + 0.47pct. The operating income of single Q2 company is 840 million yuan, + 26.2% compared with the same period last year, and the net profit is-6.817 million yuan, + 48.5% compared with the same period last year. In terms of expenses, 22H1's sales expenses were 189 million yuan, year-on-year-4.15%, financial expenses 42 million yuan, year-on-year + 111.73%, and R & D expenses 14 million yuan, + 80.12% year-on-year. The main reason is that the company has increased the research and development of its own breeds of poultry.
The fresh ice grew steadily and the gross profit margin recovered obviously. Live poultry prices have picked up somewhat, but costs have risen sharply and losses have continued. Chilled:
Sales increased sharply and gross profit margin went up. During the reporting period, the company's chilled products achieved business income of 980 million yuan, year-on-year + 16.91%, chilled business gross profit margin of 26.52%, year-on-year + 3.92pct. Live poultry: during the reporting period, the company sold 18.1485 million commercial broilers, + 10.99% compared with the same period last year, and realized sales revenue of 410 million yuan, + 20.83% over the same period last year. The average sales price is about 11.86 yuan / kg (year-on-year + 6.04%), and the gross profit margin is-5.01% (year-on-year-8.91pct). Although the sales unit price is significantly higher than the same period in 2021, the breeding cost is also significantly increased due to the rise in feed raw material prices (estimated unit cost year-on-year + 18.9%). As a result, the live poultry business as a whole still recorded a significant loss, with a gross profit of about-20.54 million yuan.
The production capacity of aquaculture is expanding steadily, and the expansion of multi-business is orderly and parallel. During the reporting period, the company's commercial broiler production and breeding maintained a steady expansion, and the construction project of a standardized breeding base for 12.5 million high-quality chickens was steadily progressed. production is expected to reach production on July 31, 2022, and the company's breeding capacity will reach 100 million in 2022. In the same period, the 10,000 breeding pig breeding project, 200000 commercial pig farm project and the annual slaughtering of 1 million live pigs and meat products deep processing project built by Hunan Taimiao Xianfeng Food Co., Ltd. have been put into production one after another.
Maintain the profit forecast, optimistic about the economic recovery of yellow-feathered broilers, and maintain the "overweight" rating. After two years of industry losses, the production capacity of the yellow-feathered broiler industry has been significantly eliminated. As of late July, the breeding stock of parents of yellow-feathered broilers has been eliminated to the second lowest level since 2018. The number of yellow-feathered broilers is expected to fall to 3.8 billion in 2022, the lowest level in nearly five years. At the same time, the demand side of the two major repression-the ban on the sale of live birds, chilled promotion and pig prices will usher in marginal improvement, optimistic that the yellow-feathered broiler industry will pick up. From 2022 to 2024, the company is expected to achieve operating income of 37.04 Universe 45.61 / 5.163 billion, net profit of 1.252 million and net profit of 1.252 million. The current share price is valued at 31X/17X/14X corresponding to PE, maintaining the "overweight" rating.
Risk tips: poultry product prices remain low; breeding epidemic outbreak; market competition intensified.