Event
On the evening of August 29, 2022, the company released its semi-annual report of 2022. 2022H1 achieved revenue of 1.614 billion yuan, + 43.95% compared with the same period last year, realized net profit of 42.91 million yuan, + 28.01% over the same period last year, and deducted non-return net profit of 27.36 million yuan, + 60.08% compared with the same period last year.
Comment
The channel is straightened out and optimized, and the company's performance continues to improve. The company's Q1/Q2 realized revenue of 814 million yuan, respectively, compared with the same period last year, + 43.68%, 44.23%, and 20.02%, respectively, with a net profit of 0.21 million and 20.02% respectively. In terms of products, 2022H1 milk powder achieved revenue of 1.19 billion yuan, year-on-year + 18.20%, rice noodle revenue of 6.7585 million yuan, year-on-year-44.31%, and other categories revenue of 417 million yuan, + 308.32%. The company's channel structure continues to be optimized. From a sub-channel point of view, 2022H1 distributors / lead underwriters / e-commerce / underwriters / direct supply customers / other channels realized revenue of 4.90Universe 2.48pm 2.04max 1.97max 0.04 million, compared with the same period last year + 16.24%, + 16.24%, 40.87%, 12.48%, 11.33%, 7.29%, 57.92%, respectively.
The trend of reducing cost and increasing efficiency is obvious, and cost control is constantly optimized. 2022H1 sales expense rate is 25.76% (YoY-7.02pct), management + R & D rate is 5.91% (YoY-2.96pct), and financial rate is 1.56% (YoY-1.82pct). The three major rates were significantly improved compared with the same period last year, and the company's multiple cost-reducing and efficiency-increasing measures were effective, helping to improve operational efficiency. 2022H1's gross profit margin was 38.02%, year-on-year-15.58pct, mainly due to a large increase in revenue from other businesses with low gross profit margin compared with the same period last year.
With the multi-dimensional reform of management, the results of channel optimization are expected to be transformed smoothly. The company focuses on the pregnant and baby food track, has a number of invention patents, R & D strength in the industry leading position; superimposed advanced information management system and brand building to form a strong consumer stickiness. With the multi-dimensional reform of the management of the company, the core competitive advantage is becoming more and more prominent. On the channel side, the company combs distribution and optimizes direct sales channels, and forms a new retail model layout, online and offline channels complement each other, and the results of channel optimization are expected to be transformed smoothly.
Investment suggestion
Under the condition that the channel carding is gradually clear and the new retail model is formed, the company is expected to fully benefit from the high-end trend of the milk powder industry by virtue of brand strength, products, supply chain and other advantages. We estimate that the EPS of the company from 2022 to 2024 will be 0.13, 0.20, 0.29 yuan per share respectively. Based on the stock price on August 29, the company's PE from 2022 to 2024 is 37.30X/24.19X/16.87X, maintaining a "recommended" rating.
Risk hint
Food safety risk; supply chain risk; recurrent epidemic risk; decline risk of newborn number.
