Event

The company disclosed that 2022H1's revenue was 1.123 billion yuan, an increase of 13.55% over the same period last year, and its net profit was 42.6978 million yuan, an increase of 12.57% over the same period last year. 2022Q2 realized revenue of 637 million yuan, an increase of 16.41% over the same period last year, an increase of 31.07% over the previous year, and a net profit of 30.9207 million yuan, an increase of 171.45% and 162.55%, respectively.

Brief comment

1. Revenue has maintained growth and profitability has declined slightly.

The company's 2022H1 realized revenue of 1.123 billion yuan (+ 13.55% compared with the same period last year). ① sub-regional point of view, the company's Shandong Province income of 516 million yuan, accounting for 45.95% of revenue; non-provincial income of 284 million yuan, accounting for 25.29% of revenue; export income of 259 million yuan, accounting for 23.06% of revenue; online sales revenue of 64.6677 million yuan, accounting for 5.79% of revenue. ② sub-business point of view, 2022H1 company conditioning income of 536 million yuan, accounting for 47.73% of revenue; fresh income of 337 million yuan, accounting for 30.01% of revenue; commodity generation of broiler income of 240 million yuan, accounting for 21.37% of revenue.

③ 's net profit in the first half of 2022 was 42.6978 million yuan, an increase of 12.57 percent over the same period last year.

In terms of profit margin, the company's 2022H1 sales gross margin is 9.32% (down 1.04pcts from the same period last year), and the net profit margin is 3.80% (down 0.03pcts from the same period last year).

In terms of expenses, the sales fee of 2022H1 Company is 24.5267 million yuan,-0.14% compared with the same period last year, and the management fee is 26.2152 million yuan, + 35.50% compared with the same period last year, which is mainly due to the increase in the salary and social security payment base of managers and the service fees of audit, financial customs and other institutions. The financial expenses were-2.9009 million yuan,-140.22% compared with the same period last year, mainly due to the financial income of the raised funds, the decline in loan interest rates and the increase in exchange earnings; the R & D expenses were 2.0646 million yuan, + 1.59% compared with the same period last year.

2. The price of hairy chicken has gone up, and the company's performance in the second quarter has improved significantly compared with the previous quarter.

The company's 2022Q2 achieved revenue of 637 million yuan, an increase of 16.41% over the same period last year and 31.07% month-on-month growth. ① sub-regional point of view, 2022Q2 company in Shandong Province income of 326 million yuan, an increase of 71.83%; non-provincial income of 125 million yuan, down 21.61%; export income of 156 million yuan, an increase of 51.62%; and online sales revenue of 30.3529 million yuan, down 11.55% from the previous month. From the perspective of ② sub-business, the income from conditioning products of 2022Q2 Company was 279 million yuan, up 8.83% from the previous month; the income from fresh and fresh products was 153 million yuan, down 17.11% from the previous month; and the income from commercial broiler chickens was 199 million yuan, up 377.18% from the previous month (mainly due to a rebound in the prosperity of the industry, and the price of commercial broiler chicken began to rise sharply in the second quarter). ③ 2022Q2 realized a net profit of 30.9207 million yuan, an increase of 171.45% over the same period last year and 162.55% month-on-month growth.

In terms of profit margin, 2022Q2's gross profit margin on sales is 9.63% (0.73pcts higher than the previous month) and net sales margin is 4.85% (higher 2.43pcts than the previous month).

3. Tap the potential of the export market, and the growth rate of prepared food business is bright.

In the first half of 2022, the company's export business was greatly affected by the high sea freight, the change in the exchange rate of RMB against the US dollar, and the increase in product prices in foreign markets affected by inflation. The company seizes the favorable opportunity of foreign epidemic situation and exchange rate changes to actively open up foreign markets. The export volume of 2022H1's products increased by 77% compared with the same period last year, and the export foreign exchange earnings increased by 93% compared with the same period last year. In the case of the sluggish national and industry market environment, the company achieved relatively good business performance in the first half of the year.

In the first half of 2022, the national prefabricated food industry has entered a stage of rapid development, local governments have issued relevant support policies to vigorously develop the prefabricated vegetable industry.

The company's transformation and upgrading strategy has continued to make solid progress, and sales of condiments (prepared vegetables) have maintained steady growth, accounting for more than 50% of total food revenue and sales for three consecutive years, reaching 61% in the first half of this year, continuing to lead the industry. The company's new product research and development has broken through the bottleneck technology and successfully developed a series of new products: following the online release of 12 new Chinese and Western food products in May, we have successively launched 12 new products such as non-fried prefabricated vegetables, double protein chicken energy burger, refrigerated dumbbell chicken breast and plant base points, and formed production capacity and sales volume.

4. Profit forecast and rating: the company's revenue in 2022-2024 is expected to be 23453013,3760 million yuan, the net profit of its parent is 0.77 million, 146pm, 1.14 million, the EPS is 0.39 and 0.73, respectively, and the corresponding PE is 39.9x/21.1x/14.4x respectively, maintaining the "overweight" rating.

Risk tips: epidemic risk, raw material supply risk, chicken price fluctuation risk, entrusted breeding risk, environmental protection risk, food safety risk, exchange rate change risk, tax policy risk and so on.