In 2021, Q1 Company realized operating income of 2.183 billion yuan, an increase of 12.9% over the same period last year, and adjusted net profit of 331 million yuan, an increase of 11% over the same period last year.
Milk powder grew strongly, Hipnokai took the lead, and goat milk powder recovered from a month-on-month basis. The revenue of private-brand formula was 1.925 billion yuan, an increase of 12.6% over the same period last year. 1) Milk powder business: private brand formula milk powder business totaled 1.053 billion yuan, an increase of 36.5% over the same period last year, and continued to maintain double-digit growth. Ultra-high-end Hypokay Biology realized business income of 718 million yuan, an increase of 58.7% over the same period last year, taking the lead and becoming the fastest-growing business unit of Australia excellent. Among them, star large single products performed beautifully, brand power continued to improve, and vertical stores grew strongly. 2) Sheep milk powder business: Q1 Jiabei Aite dropped 7.1% in 2021 compared with the same period last year, mainly due to the high base during the epidemic, and the month-on-month recovery was significant. Jiabei Aite's income in China was 835 million yuan, an increase of 29.7% compared with the previous month. At present, Jiabeit channel reform has achieved remarkable results, market pricing has gradually stabilized, and inventory levels have returned to normal.
The gross profit margin improved month-on-month, while the net profit margin increased year on year. The company's gross profit margin was 51.11%, down 2.75 PCT from the same period last year, and increased 2.8 PCT month-on-month, which was mainly due to the strategic purchase of raw goat milk from Q2 in 2020, the closure of the epidemic and the decline in the price of dairy-related products, and the recovery of losses caused by buying and selling; the rate of sales and management expenses was basically flat; the company's net profit rate was 14.5%, an increase of 0.69PCT over the same period last year.
The field of health is gradually increased, and R & D drives future development, which is in line with the golden 10-year strategy. 1) Special medicine infant lactose-free formula approved: in 2021, Q1 Aoyou added a special medical infant lactose-free formula food approved, in the future is expected to combine the company's dominant brand, new products to enter. 2) probiotics: MP108 Lactobacillus rhamnosus, which is declared by Jinqi, a probiotic business brand of Aoyou, has been approved to be used as a strain in infant food, and R & D drives long-term development. 3) some of the nutritional NutritionCare:Nutrition Care products are supplied from China. It is planned that Q2 will begin to produce some nutrition products in China, and the product portfolio is expected to continue to expand to include nutrition products for children and adults.
Investment advice: the rapid growth of milk powder, Hipnokai taking the lead, goat milk powder to restore solid and progressive, research and development to drive the company's special medicine and probiotic track performance. We estimate that the company's operating income for 21-23 years will be 97.43 yuan, 116.91 yuan and 13.796 billion yuan respectively, and its net profit will be 12.38 yuan, 15.12 yuan and 1.836 billion yuan respectively, and the corresponding EPS will be 0.72,0.88,1.07 yuan respectively, and the corresponding PE for 21-23 years will be 15,12,10X, maintaining the "overweight" rating.
Risk tips: slow increase in inventory rate, rising raw material prices, lower-than-expected sales of new products, increased international trade frictions, food safety problems.