The company's annual 1H21 revenue was 4.271 billion yuan, an increase of 10.7% over the same period last year. The return net profit was 594 million yuan, an increase of 45.3% over the same period last year.
The private-brand formula business recorded revenue of 3.741 billion yuan, an increase of 9.7% over the same period last year. Among them, the revenue of milk powder business was 2.053 billion yuan, an increase of 16.9% over the same period last year; the sales revenue of Nengliduo was 563 million yuan, an increase of 37.0% over the same period last year. Nengliduo released "excellent series" products containing three major categories and four individual products, actively embracing new opportunities for the growth of national powder. Hipnokai's biological sales revenue was 1.374 billion yuan, an increase of 18.9% over the same period last year, focusing on ultra-high-end growth. Hipnokai 1897 launched a new child growth formula, following mother powder and baby powder. formally entered a new stage of providing higher quality nutritional support for the whole family.
The recovery of Jia Beit's business accelerated, with revenue of 1.688 billion yuan, an increase of 2.0% over the same period last year, of which 2Q21's revenue in China increased by 17.8% over the same period last year. The international market continued to break through and was exported to more than 60 countries and regions. Since entering the Mexican market in 2020, Jiabeit's local demand has increased month by month and has performed well. At present, the company is still preparing to introduce Jiabei into the Southeast Asian market by the end of this year.
The nutrition business brings forth the new. The income of Australian excellent nutrition business is about 68 million yuan, an increase of 3.5% over the same period last year. Sales in China are about 66 million yuan, an increase of 33.3% over the same period last year.
MP108 Lactobacillus rhamnosus, which is declared by Jinqi Biology, its probiotic business brand, is the first infant probiotic strain independently developed in China. On May 16, Aoyou officially launched its new probiotic product, Aiyisen "Little Orange Box", which uses this strain.
Gross profit was 2.136 billion yuan, up 5.6 per cent from 2.022 billion yuan in the same period in 2020. Excluding the additional inventory provision of 122 million yuan, the gross profit margin rebounded to 52.9 per cent.
Investment advice: milk powder business multi-strength, goat milk powder month-on-month recovery 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, the corresponding EPS will be 0.72,0.88,1.07 yuan respectively, and the PE for 21-23 years will be 11,9 and 7X respectively, 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.