Event description
The total revenue of 2023H1 of the company is 1.866 billion yuan (+ 3.15%), the net profit is 256 million yuan (+ 5.78%), and the non-net profit is 247 million yuan (+ 3.12%). Among them, the total operating income of 2023Q2 is 1.65 billion yuan (+ 9.57%), the net profit is 320 million yuan (+ 16.79%), and the non-net profit is 317 million yuan.
Event comment
Zongzi sales performance is steady, look forward to sub-card incremental mining. The revenue of the company's zongzi series products in the first half of the year is 1.582 billion yuan / + 4.46%. It is estimated that the revenue of some zongzi products will be postponed to the third quarter, and the company's contract debt will be 105 million yuan as of June 30. The company relies on the influence of the "Wufangzhai" brand, to the second sub-brand "Chicken" (to undertake business channel 2B business customers, online network end 2C customers for pilot operation), "Jiahu detail" (layout sinking market, grabbing competitive product share) management, explore new ways to enter different markets.
Investment in non-rice dumplings such as baking, quick-freezing, prefabricated vegetables and so on will be increased. In terms of baking products, the main moving sales of mung bean cakes still perform well, and the company will focus on creating the Mid-Autumn Festival family gift scene according to market insight in the second half of the year. In terms of quick-frozen products, focusing on breakfast and Japanese sales scenes, rice balls, Jiangnan wet spots, glutinous rice dumplings and glutinous rice dumplings are confirmed as quick-frozen core products, and tangyuan and Eight Delicacies Rice are used as drainage products during the Spring Festival. promote the formation of sales of daily products; the company launched a variety of prepared food products to meet the needs of consumers with different tastes In terms of seasonal food, according to seasonal and regional needs, the company has launched new Youth League products and new "Ice glutinous Tuan" series, which are in line with the spring scene and cater to the taste of the northern market.
The chain business takes a two-pronged approach, and the stores continue to grow. As for traditional food stores, as of June 30, 2023, the company has opened 128 direct stores and 31 cooperative stores in the Yangtze River Delta, Wuhan and Macao, covering major cities in East and Central China, such as Jiaxing, Hangzhou, Shanghai, Wuhan, etc., with chain store revenue of 218 million yuan / + 35.92% in the first half of the year. As of June 30, 2023, the company has established a total of 415 stores through direct marketing, cooperative operation, franchise and distribution, with a net increase of 14 in the first half of the year. New business type chain model, the company has set up 6 direct business festival gift shop, 7 join the festival partner gift shop, will continue to expand in the second half of the year.
Investment in research and development has been increased, and the overall profit margin has improved. The company's 2023H1 homing net profit rate increased 0.34pct to 13.74%, gross profit margin-0.18pct to 41.49%, period expense rate + 0.5pct to 22.92%, including detailed changes: sales expense rate (- 0.15pct), management expense rate (+ 0.88pct), R & D expense rate (+ 0.37pct), financial expense rate (- 0.6pct), operating tax and additional (- 0.13pct). 2023Q2 homing net profit rate increased 1.2pct to 19.42%, gross profit margin + 0.45pct to 42.38%, period expense rate + 0.19pct to 16.97%, including detailed changes: sales expense rate (- 0.09pct), management expense rate (+ 0.23pct), R & D expense rate (+ 0.3pct), financial expense rate (- 0.24pct), operating tax and additional (- 0.19pct). The improvement of profit margin is expected to be related to the turnaround of the chain business.
Profit forecast and investment income: it is estimated that the return net profit from 2023 to 2025 is 2.00,2.48,315 million yuan respectively, and the EPS is 1.39,1.72,2.19 yuan respectively. The current PE is 22,18,14X respectively, maintaining the "buy" rating.
Risk hint
1. Food safety risk
2. The risk of seasonal fluctuation of operation
3. Raw material price risk and so on.