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Anjing Food (603345): Revenue growth slightly affected, profit performance is better than expected

Anjing Food (603345): Revenue growth slightly affected, profit performance is better than expected

Performance summary: The company achieved operating income in the first quarter of 201910.

96 trillion, ten years +14.

6%; net profit attributable to mother is 64.87 million yuan, +19 a year.

6%, net profit attributable to non-mothers is 5,971 million, +23 for many years.


Affected by the “African Swine Fever” incident, the growth rate of Q1 sales revenue has been curly.

Q1 revenue growth was 14.

6%. Previously, the average chain ratio was first affected by the “African swine fever” incident.

1. In terms of categories, the income of rice products, meat products, surimi products, and substitute products has reached 3 billion yuan. 2

900 million, 4.

1 billion, 0.

900 million, previously + 34%, -4.

3%, + 16%, + 22%.

After the company was suspected of being infected with swine fever virus, the company cleaned and disinfected the meat production line. The short-term suspension of sales of meat products resulted in a decrease in revenue. The rapid growth of noodle products was mainly due to the company’s adjustment of the product structure., Increase the expansion speed of noodle products; surimi products and scheduled products maintain multiple steady growth.

2. In terms of regions, Northeast, North China, East China, South China, Central China, Northwest and Southwest income growth rates were +8.

7%, + 33%, + 16%, + 3%, + 12%, + 28%, + 4%. The release of new production capacity at the Taizhou plant has driven surrounding East China, North China and Central China to grow faster.

3. In terms of channels, the growth rate of the distribution channels, Supermarket, Specialcom, and e-commerce was 11%, 25%, 40%, 65044%, and the high-end Maruzhizun product volume led to a good performance in the supermarket channel.In the initial stage of the business, the cracks increased.

Cost impacted gross profit margin decreased slightly, cost control in place increased net profit margin.

1. The company’s Q1 gross profit margin was 26.

36%, a decrease of 0 every year.

59pp, the rising price of pork 杭州桑拿 raw materials put pressure on the cost side in the short term. The company raised the price twice in 18Q4 to a certain extent, but the gross profit margin fell slightly.

2. The three rate (including R & D) is 18.

45%, a slight decrease a year ago. The sales expense ratio, management expense ratio (including R & D), and financial expense ratio were 14 respectively.

04%, 3.

99%, 0.

42% -0 per year.

84pp, -0.

38pp, +0.

37%, sales expenses and management expenses are in place, and the expense ratio under the effect of scale has dropped, and interest expenses on convertible bonds have increased to finance costs.

3. The company’s Q1 net profit increased by 0.

25pp to 5.

92%, slightly improved profitability.

Short-term cost disturbances affect profit performance, and there is still huge room for long-term development.

1. Due to the swine fever incident that caused pork prices to rise, the company used imported pork to raise costs in order to ensure food safety. Cost disturbances may affect the company ‘s profit performance in the short term, and its performance will be under pressure in the short term, but it will not affect the company’s intrinsic value.

2. The company’s long-term growth logic is clear: 1) Traditional business: Consumption upgrade drives demand for mid-to-high-end hot pot ingredients / noodle products + remote expansion to seize market share and open up incremental market space. In the next three years, the company’s product demand will continue to be high, with capacityProtection.

2) Quick-frozen food business: The company’s quick-frozen food platform advantage has been established, relying on the existing huge channels to cultivate new categories, and occupy a place in the huge food and beverage materials market.

3) Under the environment of rapid industry growth, it is more conducive to leading and outstanding, the most efficient leading companies harvesting market share. At present, the share of Anjing City has only increased by 10%. It is optimistic that the market share of leading enterprises will increase to more than 20%.The net profit margin increased simultaneously.

Earnings forecasts and investment advice.It is expected that the revenue for 2019-2021 will be 51.

300 million, 61.

600 million, 73.

300 million, net profit attributable to mothers is 3.

300 million, 4.

200 million, 5.

300 million, the EPS is 1.

51 yuan, 1.

96 yuan, 2.

46 yuan, corresponding to a dynamic PE of 27 times, 21 times, 17 times, maintaining the “buy” level.

Risk warning: the price of raw materials fluctuates greatly; food safety risks.