Event: the company released its annual report for 2020, with an operating income of 2.202 billion yuan, an increase of 12.09% over the same period last year, a net profit of 247 million yuan, an increase of 12.22% over the same period last year, and a non-return net profit of 239 million yuan, an increase of 14.11% over the same period last year.
Maintain the leading position of edible mushroom production, all the major mushroom species keep growing, and the small mushroom species grow rapidly!
The company is the largest factory production enterprise of edible fungus in China. At the end of 2020, the company has seven production bases of Shanghai, Dujiangyan, Jilin Changchun, Shandong Dezhou, Huizhou of Guangdong, Bijie of Guizhou and Lintao of Gansu. Thailand production base has been built abroad, and the daily output of edible fungus has reached 1325 tons, ranking first in the country. At present, Flammulina velutipes is still the main mushroom species of the company, with revenue reaching 1.626 billion (74%) in 2020, an increase of 5.66% over the same period last year. The growth rate of small mushroom species is noteworthy: Zhenji mushroom revenue reached 373 million, up 28% from the same period last year, and Pleurotus eryngii revenue reached 146 million, up 60% from the same period last year. During the reporting period, the company implemented the equity incentive plan, and the share payment fee in the current period reached 28.66 million, which has become the main factor for the large increase in management expenses, but in the long run, the long-term incentive mechanism helps to stimulate the enthusiasm of employees and enhance team cohesion.
The construction of production capacity is accelerated, and the company's market share is expected to further increase.
In 2021, the company has a daily output of 101.6 tons of Flammulina velutipes in Dezhou, Shandong Province, the third phase of Flammulina velutipes project in Shandong Province, and the second phase of Gansu production base (the first phase is already the largest production base of edible fungi in Northwest China) is expected to be completed and put into production. The company launched the project of issuing shares to specific targets in the second half of 2020, which has been approved by the China Securities Regulatory Commission. The project mainly increases the production capacity distribution of Pleurotus eryngii and Flammulina velutipes in Anhui and Hubei. After the completion of full production, the Anhui Xuerong Pleurotus eryngii factory project and the Hubei Xuerong Flammulina velutipes factory project are expected to increase the daily production capacity of Pleurotus eryngii by 100t (corresponding to nearly 29 million net profit) and Flammulina velutipes daily production capacity by 120t (corresponding to 45 million net profit) respectively. The continuous increase in production capacity is expected to further enhance the company's market share and consolidate its leading position in the industry.
Continuous promotion of small packaging, deep ploughing channels, strengthening brand image
During the reporting period, the company's share of small packaging products increased from 10% to 40%. Through intensive cultivation of key customer KA (Key Account) channels, the company increased the distribution of goods to large supermarket chains such as Yonghui supermarket, and strengthened the offline brand strength of Xuebong supermarket. In terms of online channels, the company has settled into e-commerce platforms such as box Ma Xiansheng, daily excellent fresh food, Ding Dong shopping, and so on. In March 2021, the subsidiary signed a contract with Orange Xinxuan to jointly invest 15 million yuan to set up a joint venture company in Shanghai to promote the automation, standardization and digital construction of the fresh meat products industry with pre-packaged fresh meat products as a starting point. upgrade the supply chain of fresh agricultural products. In addition, the company launched mushroom stick, mushroom crisp two kinds of mushroom protein snacks to make a new attempt to extend the industrial chain and deepen the brand image.
Previously, we expected the company's operating income for 21-22 years to be 3.933 billion yuan, and the return net profit to be 430 million yuan, 560 million yuan. Because the price increase of the company's products may be lower than expected, we slightly lowered our previous profit forecast: the company's operating income for 2021-23 is expected to be 26.040.503.442 billion yuan. The net profit of homing is 2.77max, 329,000,000 yuan, up 12.16%, 18.52% and 16.76% over the same period last year. As the leader of edible fungus, the company's production capacity is expanding rapidly, and it is expected to increase the market share and maintain the buying rating by virtue of strong product power, brand power and channel power.
Risk hint: the risk of intensified competition in the edible mushroom industry; the risk of seasonal fluctuation; the management risk that may be caused by the expansion of business scale; overseas investment management risk
