Event

The League of Nations Aquatic products released three quarterly reports for 2022.

Main points of investment

The performance is in line with expectations and the gross margin is under short-term pressure.

2022Q1-Q3 's revenue was 3.948 billion yuan (up 20%), and its net profit was 52 million yuan (up 364%). Of this total, the revenue of 2022Q3 was 1.534 billion yuan (up 28%), and the net profit of returning home was 19 million yuan (up 18.16%). The gross profit margin 2022Q1-Q3 is 11.1% (same as minus 6pct), of which 2022Q3 is 9.6% (same as minus 6pct), which is due to the rise in raw materials and so on. The net interest rate 2022Q1-Q3 is 1.3% (with the same increase of 1.0pct), of which 2022Q3 is 1.2% (with the same increase of 1.1pct), which is due to the fact that the rate of sales expenses is reduced by 0.7pct and the rate of management expenses is reduced by 0.3pct. The net cash flow of operating activities (2022Q3) is 29 million yuan (same as the decrease of 67%).

Focus on the prefabricated food race track, it is expected to increase the force.

At present, the product end of the company is gradually transforming to catering materials and marine food based on prefabricated dishes, enhancing the added value and influence of products, building a "small Tyrannosaurus" prefabricated vegetable brand and creating a new highland of prefabricated food brand. the existing main products such as grilled fish, Boiled Fish with Pickled Cabbage and Chili and crayfish; the channel end adheres to the omni-channel strategy and has accumulated large high-quality customers such as Box Horse and Yonghui supermarket. At the same time, the company is preparing to increase, and the total amount of funds to be raised by issuing shares to specific targets will not exceed 1 billion yuan. After the landing of the project, it is expected to increase the production capacity by 69000 tons, laying a solid foundation for the development of prefabricated vegetables.

Profit forecast

Regardless of the impact of additional issues on equity for the time being, it is estimated that the company's EPS in 2022-2024 will be 0.10 EPS 0.17 quarter yuan respectively, and the current share price corresponding to PE will be times that of 47-28-20, maintaining the "buy" investment rating.

Risk hint

Macroeconomic downside risks, epidemic drag on consumption, prepared dishes are not as expected, the progress of additional issuance is not as expected, and so on.