Event
On October 27, 2023, Delis released its report for the first three quarters of 2023.
Main points of investment
The results in the third quarter slightly exceeded expectations and profitability improved steadily.
The total revenue of 2023Q1-Q3 is 2.313 billion yuan (up 18%), the net profit is 28 million yuan (down 44%), the total revenue of 2023Q3 is 770 million yuan (39%), and the net profit is 3 million yuan (57%). On the profit side, the 2023Q1-Q3 gross profit margin / net profit margin is 8.36% / 0.85% respectively, and the gross profit margin / net profit rate is 6.97% / 2023Q3 respectively compared with the same period last year. + 2pct/-0.2pct, the company formulates the wear standard assessment, strictly controls the loss rate, the production cost is effectively controlled, and the gross profit margin is further increased. On the expense side, the 2023Q1-Q3 sales expense rate / management expense rate is 3.23% / 2.93% respectively, and the sales expense rate / management expense rate is 3.09% / 3.28% respectively compared with the same period of last year + 0.2pct/-0.4pct.
Strengthen the development of prefabricated vegetable market, improve channels and capacity construction products, the company actively open up prefabricated vegetable blank market, continue to expand business layout advantages. In terms of channels, the company speeds up the construction of marketing network system, and B-end / C-end sales channels work synchronously. B side, vigorously promote cooperation with leading customers in the catering and retail industries, focusing on developing regional markets such as North China, East China, Southwest and South China where there is a strong demand for prepared dishes; C side, increase operational cooperation with third-party live broadcast platforms and talent anchors. on August 18, the sales of the company's products in Simba live studio exceeded 9.2 million yuan, orders exceeded 92000, and brand awareness was further improved.
In terms of production capacity, the production capacity of 50,000 tons of prefabricated vegetables in the company's Shaanxi base is expected to be put into production in the near future, and the Xianyang 2 million / year pig slaughtering and meat processing project is stepping up construction, with the landing of the new production capacity, the market share of the company's products is expected to further increase.
Profit forecast
We are optimistic about the company's advantages in supply chain, channel and brand in the field of prepared food. According to the three-quarter report, we adjust the EPS to 0.090.16x0.28 yuan in 2023-2025 (the previous value is 0.11pm 0.17x0.27, respectively), and the current share price corresponds to PE times 64-34-19, maintaining the "buy" investment rating.
Risk hint
Macroeconomic downside risks, raw material rising risks, less-than-expected growth of prepared vegetables, and so on.