Summary of the report:
In 2012, the company achieved a total operating income of 1.3787724 billion yuan, an increase of 11.66% over the same period last year, and the net profit belonging to the shareholders of the parent company was 108.6291 million yuan, an increase of 16.64% over the same period last year. Realize earnings per share of 0.27 yuan. In 2012, the company plans to pay a cash dividend of 0.8 yuan (including tax) for every 10 shares on the basis of the total share capital, and increase 10 shares for every 10 shares to all shareholders with the capital reserve fund.
In 2012, the company's catering revenue was 1.3129995 billion yuan, up 7.03% from the same period last year; trademark licensing and service fees were 38.8916 million yuan, up 631.52% from the same period last year; and other business income was 26.8813 million yuan, up 905.68% from the same period last year.
The company's future highlights: 1) the company has established the development layout of restaurant business, fast food business, group meal business and food processing business. Among them, in addition to the restaurant business, the other three major businesses are new business type, which the company will focus on developing. The company's goal for new business type's business development is to strive for new business type's operating income to reach about 80% of the company's total operating income in the next three to five years. 2) affected by the central "three public consumption" control, the company's restaurant business was greatly affected. In the first quarter of 2013, the company forecast a loss of about 5500-70 million yuan, mainly due to varying degrees of decline in sales performance of its subsidiaries. In this regard, the company has taken a series of measures to transform the business focus from high-end to middle-and low-end in time, hoping to use group meal business and fast food business to make up for the loss of high-end catering. We wait and see for the effect after the transformation. 3) the group meal business will be the first major cause of the company's future development: in July 2012, the company acquired 100% stake in long Dehua, marking the beginning of the company's entry into the group meal business. At present, the company undertakes nearly 50 group meal projects in East China, North China, Central China and other cities. The company's brand advantage, cost advantage and taste advantage brought by the central kitchen will be the core competitiveness of the development of group meal business. In the future, the possibility of further acquisition of group meal projects cannot be ruled out. 4) in August 2012, the company acquired Weidu Company, marking the establishment of the company's fast food business. Through the integration of Weizhi, the revenue of each store is growing well. In the future, the company will continue to speed up the opening of Weizhi's stores in Beijing and Shanghai. 5) the market for the food processing industry is huge: consumers will be provided with finished and semi-finished dishes and fast food that can be enjoyed by simple processing and cooking in the home kitchen.
Company profit forecast and investment strategy: the company speeds up the pace of capital operation and enters the group food and fast food market through mergers and acquisitions. Multi-format development will become the highlight of the company's performance growth in the future. However, considering the impact of the current "three public consumption" control on the company, we downgrade the company's EPS to 0.24,0.33 and 0.44 yuan respectively from 2013 to 2015, and the company's current share price is 8.56 yuan, corresponding to PE35, 26 times, 19 times, to "neutral" rating.
Risk tips: the impact of "three public consumption" control on the company, the risk of major shareholder reduction, and so on.