Event: the annual report was released on March 15, 2021. The annual operating income was 2.668 billion yuan, an increase of 7.82% over the same period last year, and the net profit of homing was 170 million yuan, an increase of 12.15% over the same period last year. Bing Q4 realized revenue of 711 million yuan, an increase of 17.22% over the same period last year, and realized net profit of 34 million yuan, an increase of 14.44% over the same period last year.
Comments: the revenue performance has increased steadily, and the comprehensive capacity has been continuously enhanced. The company is committed to providing downstream enterprises with comprehensive solutions for food flavor, and constantly strengthen the benign interaction between various business sectors. 1) in terms of revenue: the revenue of flavors in 2020 was 516 million yuan, down 5.00% from the same period last year, mainly due to the contraction of downstream demand and the upgrading of superimposed products; the production capacity of spices was released, and the output increased by 33.83% to 1167 tons, achieving revenue of 238 million yuan, an increase of 6.34% over the same period last year. The revenue of food ingredients reached 1.896 billion yuan, an increase of 12.87% over the same period last year, of which the revenue from the manufacturing business was 430 million yuan, an increase of 43.06% over the same period last year. 2) profit: the growth rate of return net profit is higher than that of revenue, and the contribution of non-recurrent profit and loss in increment accounts for 57.42%. In 2020, the company received government subsidies and investment income increased, with a total non-recurrent profit and loss of 41.3293 million yuan, compared with 30.7386 million yuan in the same period. 3) Comprehensive competitive advantage: the company's flavor and fragrance business has the competitive advantage of the whole industry chain, the production capacity of core spices can be controlled independently, the categories of flavors are complete, and the product quality is stable and reliable. In addition, the company's 750 million increase plan has been accepted, and it is planned to continue to increase the size of the food ingredients plate, and the manufacture of industrial chocolate and jam has formed double barriers to technology and production capacity. Under the situation that the epidemic situation at home and abroad accelerates the reshuffle of the industry, the company's head advantage is further enhanced.
The gross profit margin decreased slightly and the expense rate continued to improve. The launch of new flavor products in 2020 slightly increased the gross profit margin to 43.81%, but the company's overall gross profit margin fell 3.48pct to 16.88% compared with the same period last year. The main reason is that under the new revenue criterion, 43 million yuan of transportation expenses are transferred from sales expenses to operating costs.
During the period, the expense rate decreased by 3.29pct to 8.82% compared with the same period last year, of which the sales / management / R & D expense rate was 3.17%, 5.81% and 1.28%, respectively, and decreased by 2.66pct/1.12pct/0.05pct compared with the same period last year.
Profit forecast: under the trend of consumption upgrading, the concentration of the upstream market of China's food industry continues to increase, and the company is expected to gain more development space by virtue of its comprehensive competitive advantage. At the same time, the company lays out the field of compound seasoning ahead of time and plans to create the second growth curve. It is estimated that the EPS of Epp shares in 2021-2023 will be 0.54,0.60,0.66 yuan, corresponding to PE 17X, 15x, 14x, the first overlay rating will be given.
The suggestion of wind risk insurance indicates: the situation of epidemic situation at home and abroad is moving, the concept of food consumption is changing, and the competition in the market is intensified.
